On Tuesday 14th January, Kenya president His Excellency William Samoei Ruto, made an announcement revealing that Kenya’s SGR Extension project was seeking support from the United Arab Emirates. Kenya is deviating from China’s support despite China Road and Bridge Corporation which is a subsidiary of China Communications Construction Company constructing the country’s first SGR.
In a statement following Ruto’s meeting with his UAE counterpart President Sheikh Mohamed bin Zayed Al Nahyan and the minister of investment in UAE Mohamed Hassan Alsuwaidi, Ruto said that the aim was to extend the SGR to the neighboring countries of Uganda and South Sudan.
Kenya’s SGR Extension Project Factsheet
The SGR extension project aims to expand Kenya’s railway network so as to improve regional connectivity and promote trade with neighboring countries. The project is divided into phases, with the latest extension focusing on linking Kenya to both Uganda and South Sudan.
Key Phases
Phase 2B: Entails extending the railway from Naivasha to Kisumu, covering a distance of 362 kilometers.
Phase 2C: It will run from Kisumu to Malaba, covering a distance of 106 kilometers.
Future Plans: There are potential extensions to Moyale, Isiolo, and Lamu, linking to Ethiopia and South Sudan.
Funding
Phase 2B and 2C: Estimated to cost Ksh648 billion, funded by the Chinese government.
Future Extensions: The funding details are yet to be finalized. There are potential partnerships with the UAE and other international investors.
Timeline
Phase 2B: Construction is expected to commence in 2025 and expected to take four years.
Phase 2C: It will commence after the completion of Phase 2B.
Benefits/Significance
Regional Integration: Will enhance connectivity with Uganda, South Sudan, and potentially other East African countries.
Trade Promotion: It will facilitate smoother trade routes and boosts economic growth.
Infrastructure Development: It will improve transportation infrastructure and support economic development in northern Kenya region.
Partnerships
China: The primary partner for the initial construction and extension phases.
UAE: The potential partner for future extensions and economic cooperation.
Also read: Kenya-Uganda SGR Construction Project to Resume
Kenya Explores UAE Partnership for SGR Extension
“We are currently exploring a partnership with United Arab Emirates that will foresee the extension of the SGR to link Kenya, Uganda, and even South Sudan,” a part of the statement mentioned.
“As part of the plan, we have reached an agreement to carry out a feasibility study over the extension of the standard gauge railway due to its capacity to foster regional integration and also promote trade in the region,” he added.
This move from the Kenyan president clearly indicates the country’s diversion from pursuing China on funding the project. However, China was responsible for the development and construction of the initial phase of the SGR and also named several times in the extension plans.
Furthermore, in a statement that was issued a couple months ago by Transport Principal Secretary Mohamed Daghar, made an announcement that the extension works of the SGR to Uganda would commence shortly after a meeting between the investment delegation of China and Kenya’s Transport Cabinet Secretary Davis Chirchir.
Also read: Kenya-Uganda SGR Commercial Contract Signed Amid Extension Plans
Furthermore, during the discussion with UAE’s president, Ruto signed the Kenya-UAE Comprehensive Economic Partnership Agreement (CEPA). This is foreseen to open the market of UAE for more Kenyan goods to enter.
Lastly, this agreement that was signed between the two presidents is the first of its kind for an African country. The agreement is expected to bolster the position of Kenya as a gateway to both East and Southern Africa.
