Kisumu, Kenya – President William Ruto and his Ugandan counterpart Yoweri Museveni on Saturday commissioned the long-delayed extension of the Standard Gauge Railway (SGR) from Kisumu to Malaba, a project expected to strengthen regional trade despite concerns over its financial cost.
Speaking at the event, President Ruto highlighted the historical significance of railway connectivity in shaping East Africa’s economic growth.
“130 years ago, the Kenya-Uganda railway connected the Indian Ocean to East Africa. Mombasa became a gateway of trade, Nairobi rose as a logistical hub, and Kisumu linked rail and water routes,” Ruto said, adding that the railway eventually reached Kampala in 1931, spurring the growth of towns such as Eldoret and Jinja.
Ruto traced the vision for a seamless regional railway to a 2008 agreement between former Presidents Mwai Kibaki and Museveni. He emphasized that the 107km Kisumu–Malaba line would connect agricultural hubs and serve countries including Rwanda, Burundi, Democratic Republic of Congo, and Central African Republic.
The President noted high logistics costs remain a challenge, citing delays in cargo movement along the Mombasa–Malaba corridor. “Cargo takes 100 hours to reach Kampala. We cannot build prosperity like this,” he said. Ruto added that the railway would stimulate growth in industrial parks and special economic zones in areas such as Busia and Kisumu.
According to Ruto, Uganda has already awarded the Malaba–Kampala section, with plans to extend the line further to Kasese.
The SGR, constructed between 2013 and 2019, currently links Mombasa–Nairobi–Naivasha. Plans to extend it to Uganda stalled after China declined additional financing. Kenya spends approximately Ksh.129.3 billion annually servicing Chinese debt, far exceeding the Ksh.21.3 billion in railway revenue generated last year. An Auditor General report indicated losses of over Ksh.33.6 billion from penalties and interest due to delayed debt repayments.
Despite financial concerns, the government maintains that completing the railway is vital for regional integration and trade. Earlier this week, Ruto broke ground on another SGR phase in Narok County, stating the project would “catalyse regional economic growth, firmly position Kenya as a leading transport and logistics hub in eastern and central Africa, create jobs, and ease road congestion.”
The next phase to Malaba is estimated to cost over Ksh.500 billion and is viewed as a critical link to landlocked countries including Uganda, Rwanda, South Sudan, and the DRC.
