Presidents William Ruto and Yoweri Museveni are expected to meet near the Kenya-Uganda border to advance plans for extending a major regional railway project aimed at boosting trade across East Africa.
The meeting comes as both countries push forward with the next phase of the Standard Gauge Railway, a multi-billion-dollar infrastructure initiative originally funded and constructed by Chinese partners. The railway currently links the coastal city of Mombasa to Nairobi and continues to Naivasha. However, earlier plans to extend the line into Uganda stalled after China halted additional financing.
Despite financial concerns, Kenya is moving ahead with construction.
President Ruto recently launched work on a new segment in Narok County, describing the project as key to strengthening economic activity, easing road congestion, and creating jobs. He maintained that the government has carefully structured financing for the expansion.
The leaders are set to meet in Kisumu, with the railway expected to reach the city by mid-2027. From there, it is planned to extend further to Malaba, a critical crossing point between the two nations.
Kenya has faced criticism over the cost of the railway, which has significantly increased its debt burden. The country reportedly spends about $1 billion annually servicing loans, much of which is tied to the rail project. In contrast, the railway’s earnings remain relatively modest, though usage has been rising.
Audits have also raised concerns about financial inefficiencies, including substantial penalties linked to delayed debt repayments. Still, Kenyan authorities view the railway as a long-term investment that will improve regional connectivity.
Unlike earlier phases, the current expansion will not rely on new Chinese loans. Instead, Kenya plans to finance construction by leveraging future revenue from cargo taxes, while still collaborating with Chinese firms on development.
The broader goal is to connect landlocked countries such as Uganda, Rwanda, South Sudan, and the Democratic Republic of Congo to the Kenyan coast, strengthening trade routes across the region.
Officials believe completing the railway corridor could position Kenya as a key logistics hub in East and Central Africa, despite ongoing debate over its financial sustainability.
