Kenya has initiated discussions with the United Arab Emirates (UAE) to secure financing for the completion of a regional railway project, after China withdrew its support for the initiative. President William Ruto announced the move, which aims to extend the Standard Gauge Railway (SGR) from the Rift Valley to the border with Uganda and beyond, linking Kenya, Uganda, and South Sudan.
The Railway Project and China’s Withdrawal
The ambitious railway project, part of China’s Belt and Road Initiative, was initially set to connect the Kenyan port of Mombasa to landlocked Uganda. However, the project came to a halt in 2019 when China cut funding, leaving the railway 468 kilometers (290 miles) short of its intended destination.
In a recent tweet, President Ruto confirmed that Kenya is now exploring a partnership with the UAE to extend the railway. He emphasized the project’s potential to foster regional integration and boost trade within the East African region. “We are exploring a partnership agreement with the UAE to extend the Standard Gauge Railway to connect Kenya, Uganda, and South Sudan,” Ruto said on X (formerly Twitter) after a meeting with UAE officials in Abu Dhabi.
UAE’s Growing Role in Kenya’s Infrastructure
As part of the agreement, both Kenya and the UAE will conduct a feasibility study on the railway extension to assess its economic and infrastructural potential. This partnership marks a deepening of ties between the two countries, with Kenya also finalizing a US$1.5 billion commercial loan from the UAE for budget support.
The two nations have been strengthening their economic relations, with the UAE becoming one of Kenya’s top trading partners. The two countries signed a comprehensive economic partnership agreement aimed at boosting trade, simplifying customs processes, and attracting more investments.
Economic Ties Between Kenya and UAE
Trade between Kenya and the UAE has significantly increased over the past decade. The UAE is now Kenya’s sixth-largest export market, with key exports including agricultural products. On the other hand, Kenya imports petroleum products, machinery, and chemicals from the UAE. In 2023, the value of bilateral trade was estimated at 445 billion shillings (US$3.44 billion).
Thani Al Zeyoudi, the UAE’s Minister of Trade, emphasized the importance of Kenya as a regional gateway, noting that the partnership would benefit both countries economically.
The Future of the Railway and Regional Integration
The extension of the SGR would significantly enhance regional trade by providing landlocked countries like Uganda and South Sudan with better access to international markets via Mombasa’s port. The proposed railway system also aims to improve transportation efficiency and reduce costs, fostering stronger economic ties and regional cooperation.
As President Ruto’s administration seeks to finalize the agreement with the UAE, this collaboration could become a crucial factor in the realization of the SGR’s regional ambitions, which hold the promise of transforming East Africa’s trade and infrastructure landscape.
