• Uganda appoints Citibank to arrange $3.19 billion railway financing

• Project links Kampala to Kenya border, boosting regional trade connectivity

• Shift follows cancelled China deal, new contract with Turkey’s Yapi Merkezi

Uganda has appointed Citibank to arrange financing for a standard gauge railway (SGR) linking the capital Kampala to the Kenyan border, in a project valued at 2.7 billion euros ($3.19 billion), the government said on Thursday.

Ramathan Ggoobi, permanent secretary at Uganda’s Finance Ministry, said the bank would act as lead arranger and coordinate funding for the railway project. He was speaking during a meeting of finance ministers from Uganda, Kenya and Rwanda in Washington, held on the sidelines of the IMF and World Bank 2026 Spring Meetings.

He added that Uganda had begun discussions with the World Bank to secure support for the project, which is expected to improve regional connectivity, reduce freight costs and strengthen trade competitiveness.

Toward Greater Regional Integration

Uganda awarded the railway construction contract to China Harbour Engineering Company (CHEC) in 2015 on condition it secured financing from the Chinese government. After delays in funding, the government cancelled the contract in January 2023 and signed a new deal in October 2024 with Turkish group Yapi Merkezi to build the line connecting Kampala to Malaba on the Kenyan border.

The project is expected to link landlocked Uganda to Kenya’s rail network and to the port of Mombasa on the Indian Ocean.

In March, Kenyan President William Ruto launched construction of a new phase of Kenya’s SGR linking Naivasha to Kisumu. A subsequent phase is expected to extend the line to the Ugandan border. Kenya’s SGR has connected Mombasa to Nairobi and onward to Naivasha since 2019.

In the longer term, Kenya and Uganda aim to extend the line to other landlocked countries, including Rwanda, South Sudan and the Democratic Republic of Congo, creating a regional rail network that could boost trade across East and Central Africa.

Walid Kéfi