Kenya and Tanzania Plan to Link SGR Networks Through Uganda

Kenya and Tanzania are advancing coordinated plans to connect their Standard Gauge Railway networks through Uganda, creating a trans-regional rail corridor linking the Indian Ocean ports of Mombasa and Dar es Salaam with landlocked nations, backed by alternative financing models including securitised Railway Development Levy bonds and public-private partnerships.

Reviving Regional Rail Corridors Across East Africa

East Africa’s transportation infrastructure is undergoing a significant strategic pivot as Kenya and Tanzania renew efforts to link their standard gauge railway networks with landlocked neighbours Uganda, Rwanda, and Burundi. Kenya broke ground in July on the long-stalled Naivasha-Kisumu-Malaba SGR project at Kibos in Kisumu County, aiming to bring its line to the Ugandan border by June 2027.

Simultaneously, Tanzania has initiated the western extension of its SGR network from the capital of Dodoma toward Kigoma on the shores of Lake Tanganyika. The dual expansions are designed to establish continuous rail corridors connecting the major Indian Ocean ports of Mombasa and Dar es Salaam directly to the interior of the continent, facilitating the movement of cargo and commodities.

Financing Massive Infrastructure on Limited Fiscal Space

The sheer scale of the planned regional network makes financing a central challenge for both host governments, which are actively looking beyond traditional debt to fund the undertakings. Kenya has opted to transform revenues raised from the Railway Development Levy into tradeable securities, using up to 90 per cent of collections to back bonds that are expected to mobilise up to KSh390 billion for the western extension.

Mr Mussa noted that while neighbours like Rwanda or Burundi would only construct short sections within their borders, the primary financial burden falls on Kenya and Tanzania to install thousands of kilometres of trunk lines.

Uganda’s Pivotal Role as a Dual-Network Connector

Uganda stands as the immediate off-taker and physical bridge connecting the Kenyan and Tanzanian rail initiatives. Uganda is prioritising its own Malaba-Kampala SGR corridor, having sought Sh62 billion through a Shariah-compliant Sukuk bond to finance the 272-kilometre stretch.

Construction officially begins on the Naivasha-Kisumu-Malaba Standard Gauge Railway (SGR) project at Kibos in Kisumu County — Photo: Mjengo Hub

Beyond the northern route meeting Kenya at Malaba, documentation from the Ugandan Ministry of Works and Transport reveals plans for a southern railway corridor.

Furthermore, Uganda wants to link a new railway line running through the south and southwest of the country to terminate at Mpondwe on the border with the Democratic Republic of Congo, opening up a direct export conduit for minerals like gold, copper, and iron ore.

The main objective of the project is to connect the vast and mineral-rich regions of both countries (Uganda and Tanzania) to the port of Dar es Salaam …

The Ugandan Ministry of Works and Transport, official government document

The African Development Bank confirmed it is considering a request to finance preparation activities for the southern rail link. Bank official Epifanio Carvalho de Melo noted that the bank may consider financing the project, depending on the outcomes of studies examining its bankability.

Expanding Network Options and Competing Port Gateways

Whether these ambitious corridors achieve full interoperability hinges on how quickly member states resolve land acquisition bottlenecks—such as the civil works delays currently facing Kenya’s Naivasha extension—and secure the capital needed to close their respective rail gaps.