Kenya Seeks United Arab Emirates Funding To Complete Standard Gauge Railway After China’s Withdrawal

           By Lisbeth Micheni, Kenya 

Kenya has turned to the United Arab Emirates (UAE), for financial support to complete the remaining sections of its ambitious Standard Gauge Railway (SGR) project.

This move follows China’s unexpected withdrawal of funding, leaving the project incomplete and stalling Kenya’s vision of becoming a regional transport hub.

The SGR, which currently terminates in Naivasha, is still 468 kilometers short of its intended endpoint at the Ugandan border.

The incomplete railway has limited its economic potential and regional integration benefits.

President William Ruto has described the extension of the SGR as critical for enhancing East African trade and facilitating seamless movement of goods between Kenya and its neighboring countries.

During high-level discussions with UAE officials, President Ruto emphasized Kenya’s commitment to fostering deeper economic ties with the Gulf nation.

The two countries recently signed a Comprehensive Economic Partnership Agreement (CEPA), aimed at eliminating trade barriers and encouraging investments across various sectors, including infrastructure.

“This partnership with the UAE is a testament to Kenya’s resilience and our determination to achieve our development goals,” President Ruto stated.

“The SGR is not just a railway; it is a lifeline for trade and regional cooperation,” he added.

The UAE has expressed interest in the SGR project as part of its broader strategy to invest in Africa’s infrastructure.

Observers note that this collaboration could bring much-needed momentum to the SGR, which has faced financial and logistical hurdles since its inception.

The SGR’s first phase, launched in 2017 with Chinese funding, connected Nairobi to Mombasa.

While the railway has significantly reduced travel times and transportation costs, the project’s stalled progress has raised concerns about its economic viability.

Critics argue that Kenya’s growing reliance on foreign funding could increase its debt burden, a concern the government has downplayed.

With negotiations still underway, the UAE’s involvement could mark a turning point for the SGR and Kenya’s long-term economic ambitions.

Completion of the railway would enable Kenya to solidify its position as a key player in regional trade, offering a critical link to landlocked countries such as Uganda, Rwanda, and South Sudan.

If successful, this partnership could also signal a shift in Africa’s approach to international financing, with Gulf nations emerging as significant stakeholders in the continent’s development.