President Ruto, Museveni launch Kisumu–Malaba SGR extension

President William Ruto and his Ugandan counterpart, Yoweri Museveni, met in Kisumu on Saturday to commission the long-delayed extension of the Standard Gauge Railway (SGR), a project expected to boost regional trade despite concerns over its cost.

The two leaders presided over the launch of the next phase of the railway, which is expected to connect Kisumu to Malaba and eventually link Kenya to Uganda and the wider East African region.

Speaking at the event, President Ruto recounted the historical significance of railway connectivity in shaping the region’s economic growth.

“It's in moments like these that our nations are shaped. 130 years ago, the colonial administration had the Kenya-Uganda railway connecting the Indian Ocean to East Africa. The railway did more than move people and goods. Mombasa became the gateway of trade, Nairobi rose from a swampy town to a logistical hub because it sat close to the railway, and Machakos declined. Kisumu was a vital inland source linking rail and water,” said Ruto.

He added that the railway eventually became a continuous line reaching Kampala in 1931, spurring the growth of towns such as Eldoret and Jinja.

Ruto said the vision for regional connectivity has remained alive, tracing it back to a 2008 agreement between former President Mwai Kibaki and Museveni to establish a seamless railway system between Kenya and Uganda.

“This new line will connect agricultural hubs. We break ground today for 107km SGR from Kisumu to Malaba. It will serve Rwanda, Burundi, DRC and Central African Republic,” he said.

The President noted that high logistics costs continue to undermine regional competitiveness, citing delays in cargo movement.

“We face a challenge of the economy not supporting a high population. High logistics for business don't allow us to compete effectively. Cargo takes 100 hours to reach Kampala. We cannot build prosperity like this,” he said, adding that the Mombasa–Malaba corridor will spur the growth of industrial parks and special economic zones in areas such as Busia and Kisumu.

Museveni, according to Ruto, confirmed that Uganda had already awarded the Malaba–Kampala section, with plans to extend the line further to Kasese.

The SGR, built between 2013 and 2019, currently connects Mombasa to Nairobi and on to Naivasha. However, plans to extend it to Uganda stalled after China declined to offer additional financing.

Kenya currently spends about Ksh.129.3 billion annually servicing Chinese debt, most of it tied to the railway project. This is significantly higher than the approximately Ksh.21.3 billion generated by the railway in revenue last year, despite growth in passenger and cargo numbers.

A report by the Auditor General also indicated that more than Ksh.33.6 billion had been lost through penalties and interest due to delayed debt repayments.

Despite the financial concerns, the government has maintained that completing the railway is critical for regional integration and trade.

Earlier this week, President Ruto broke ground on another phase of the railway in Narok County, saying the project will “catalyse regional economic growth, and firmly position Kenya as a leading transport and logistics hub in eastern and central Africa”, while also creating jobs and easing road congestion.

“We have thought through this project (and)... its finance,” he said.

The next phase will extend the railway to Malaba at the Kenya-Uganda border, with Treasury estimates putting the cost at over Ksh.500 billion.

Kenya views the railway extension as a key link to landlocked countries including Uganda, Rwanda, South Sudan and the mineral-rich Democratic Republic of the Congo, in a bid to strengthen trade across eastern and central Africa.