TLDR

Kenya is in discussions with the United Arab Emirates (UAE) to extend its Standard Gauge Railway (SGR) to Uganda and South Sudan

This builds on Uganda's October agreement with Yapi Merkezi Holdings AS to finance its portion of the SGR

Previously, plans for a Kenya-Uganda link stalled after China halted funding for Uganda's segment of the SGR

Kenya is in discussions with the United Arab Emirates (UAE) to extend its Standard Gauge Railway (SGR) to Uganda and South Sudan, President William Ruto announced. The initiative aims to enhance regional integration and boost East African trade.

A feasibility study for the railway extension has been agreed upon as part of the partnership, underscoring its potential to streamline regional connectivity. This builds on Uganda's October agreement with Yapi Merkezi Holdings AS to finance its portion of the SGR, connecting Kampala to the Kenyan border.

Previously, plans for a Kenya-Uganda link stalled after China halted funding for Uganda's segment of the SGR, forcing reliance on trucking to Kenya's port. President Ruto's announcement came during a summit in Abu Dhabi, where he also discussed UAE investments in Kenya's Galana-Kulalu agricultural project and a $1.5 billion loan to support Kenya's budget and currency reserves.

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Key Takeaways

The UAE's engagement with Kenya exemplifies Gulf states' increasing investments in African infrastructure. By extending the SGR, Kenya and the UAE seek to strengthen trade ties and connectivity across East Africa, fostering economic integration. This aligns with Gulf nations' strategy to channel petrodollars into Africa, balancing influence with global powers like the US and China. Kenya's collaboration with the UAE highlights the importance of infrastructure projects in unlocking regional economic potential. If successful, the SGR extension could ease logistics, reduce costs, and enhance trade routes for Uganda and South Sudan, further integrating East African markets.