East Africa railway project to reduce cost of doing business in the region

A section of the Kenya-Uganda Railway
A section of the Kenya-Uganda Railway

The US $3.8bn East Africa railway project will initially be from Mombasa to Nairobi before being extended to Uganda, Rwanda, Burundi and South Sudan is anticipated to change the region’s economic landscape by providing efficient and cost effective rail transport for both freight and passengers. It will also improve infrastructure and in the process create employment and reduce the cost of doing business in the region.

The 610km standard gauge will drastically reduce the time both passengers and cargo spend on travel and transit. The new link should cut the cost of sending a tonne of freight in one km from 20 US cents to 8 US cents.

Construction work on the standard gauge line is expected to start in October this year, and the 610km stretch from the coast to Nairobi is due to be finished in early 2018. China Exim Bank will finance the project to a tune of 90% with the remaining 10 % coming from the Government of Kenya.

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