Kenya-Uganda SGR Commercial Contract Signed Amid Extension Plans

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Just recently, an important step was made by the Government of Kenya as it got to sign Kenya-Uganda SGR Commercial Contract for the building of the next stretch of the Standard Gauge Railway (SGR) which runs from Naivasha all the way to Malaba in Uganda.

This information was revealed by the Treasury ahead of next weeks return to the Eurobond market.

The revealed information that is found in the Treasury prospectus to the potential international investors, sets the platform for extending the railway line to the border of Uganda in what is the third leg of the project, which is commonly known as Phase 2B.

Cost of the Kenya-Uganda SGR Extension

The total cost of these extensions amounts up to $13 billion. The Treasury also revealed that there were feasibility studies and preliminary designs for Phase 3 of the project that were currently underway.

The move to extend the Standard Gauge Railway from Naivasha was greatly welcomed by the governor of Kisumu County, Anyang Nyongo.

According to the Kisumu governor, the extension project would significantly boost the economic activities located in the county and also facilitate faster movement of goods and passengers from the Port of Mombasa to Kisumu City all the way to Uganda once it is fully complete.

In addition, the project would open up the western tourism circuit which is greatly endowed with breathtaking sites thus stirring economic growth in the region.

Significance of the Kenya-Uganda SGR Commercial Contract

This contract is set to boost economic activities at the newly refurbished Port of Kisumu by opening up business opportunities for the people living around the Lake region to carry out trading activities.

This SGR extension project has been eagerly waited for by the lake region and the region urges the Kenyan government to execute it at a faster speed to enable its completion and be put to utilization with immediate effect.

The Minister in charge of transport ministry in Kenya, Kipchumba Murkomen, made an announcement regarding the plans by the central government to get back on course on the project and expressed optimism that around 35% of the works of the project will be finished in the current year.

This project was initiated by the previous president of Kenya Uhuru Kenyatta and was expected to run all the way from Mombasa to Kisumu.

Challenges Facing Kenya-Uganda SGR Extension

Unfortunately, the SGR extension project stopped after phase 2A from Nairobi to Naivasha due to lack of sufficient funds to enable the completion of its construction works.

The governor of Kisumu County who also holds the post of chairman of Lake Region Economic Bloc (BLOC) called upon the government of Kenya to expedite the Kenya-Uganda SGR Extension project so as to unlock the full economic potential of the lake region. Generally, this project is foreseen to bolster economic growth and relations between Kenya and Uganda via trade that will be taking place.

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