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The Ugandan government has allocated a record Shs2.175 trillion ($595.5 million) in the 2025/2026 national budget that will be utilized for the long-delayed Uganda’s SGR Project. This indicates a renewed political and financial commitment to transforming the transport infrastructure in the country.
The funding allocation on the SGR project was revealed at the event of the presentation of the Budget Committee report to Parliament on May 15. Additionally, the report also outlined an extra Shs2.201 trillion for the construction, upgrade, and the rehabilitation works of national roads and bridges under the Ministry of Works and Transport.
Also read: Uganda Inaugurates Tororo-Kampala SGR Construction Works
Project Factsheet
Length: Approximately 272-332 kilometers.
Contractor: Yapı Merkezi, a Turkish construction firm, was awarded the Engineering, Procurement, and Construction (EPC) contract.
Contract value: €2.7 billion (approximately US$2.9 – US$3 billion).
Funding: Financed through a combination of domestic resources and export credit financing.
Groundbreaking: Officially launched on November 21, 2024.
Expected completion: Late 2028 (estimated 48 months from the start date).
Design capacity: Capable of transporting up to 25 million tons of cargo annually.
Train speeds: Designed for cargo trains to travel at up to 100 km/h and passenger trains at up to 120 km/h.
Features: The line will include stations, freight terminals, maintenance and repair facilities, a tunnel (2.1km), and a viaduct (2.3km), including the 552m cable-stayed Jinja Bridge.
Other planned SGR sections in Uganda:
- Northern Line (Tororo-Gulu-Nimule/Gulu-Pakwach-Goli): Extending north towards South Sudan and northwest towards the DRC.
- Western Line (Kampala-Mpondwe): Heading west towards the DRC border.
- Southwestern Line (Bihanga-Mirama Hills): Connecting to Rwanda.
The standard gauge railway is a proposed modern railway line that runs all the from Kampala to Malaba. The railway is foreseen to be a game-changer in cargo transport across East Africa.
Also read: China Back as Kenya-Uganda SGR Financier
As for now, more than 93% of Uganda’s cargo is transported by road, with rail accounting for less than 7% of the total according to statistics from the Ministry of Works. Therefore, this has increased pressure on road infrastructure and raised the cost of logistics.
Significance of Uganda’s SGR Project
Upon completion, the SGR is expected to reduce the cargo transit time from Mombasa to Kampala from 5 days to less than 24 hours. Additionally, it will reduce freight costs by up to 40%. This will bolster Uganda’s competitiveness in regional trade.
The Kampala-Malaba railway section will be 273 kilometres long. It is part of the Northern Corridor SGR network linking Kenya, Uganda, Rwanda, and South Sudan.
Previously, Uganda has been struggling to secure funding especially after Kenya stopped its own extension from Naivasha to Malaba. However, Uganda’s government is optimistic that the 2025/2026 funding will strengthen the confidence among potential partners and investors including the China Exim Bank.
Also read: $12.8 Billion Uganda SGR Project Commences
