By Nanteza Ruth Walusimbi
NATIONAL
Government has embarked on securing final financing for the Malaba–Kampala Standard Gauge Railway valued at approximately Shs. 13.5 trillion.
The Minister of State for Works and Transport, Musa Ecweru, on 19th February 2026 hosted an IsDB Appraisal Mission led by Dr. Issahaq Umar Iddrisu, Regional Hub Manager and their discussions focused on integrating the SGR into a broader Shs 3.9 trillion Country Engagement Framework being finalized by IsDB with Uganda for 2025–2027.
In October 2024, Uganda signed an Engineering, Procurement, and Construction (EPC) contract with Turkish firm Yapı Merkezi, drawing on the company’s experience with Tanzania’s SGR.
Subsequently, Uganda sought diversified financing from European export credit agencies and Islamic finance institutions, including IsDB, to fill the multibillion-euro funding gap.
The railway is designed for electric traction, supporting speeds of up to 120 km/h for passengers and 100 km/h for freight.
It will carry up to 25 million tonnes of cargo annually, with 40% of the contract value reserved for Ugandan firms.
Once operational, the SGR is expected to reduce this to Shs 6.3 million ($1,500) while cutting transit times from several days to under 24 hours.
Each train will carry 216 containers significantly lowering road maintenance costs and carbon emissions.
Over 60 percent of the railway’s right-of-way has been acquired, with nearly 150 kilometers of land secured across Tororo, Butaleja, Namutumba, Luuka, Iganga, Mayuge, Jinja, and Buikwe districts.
Current efforts focus on the densely populated corridors of Mukono, Wakiso, and Kampala. The government has already invested more than Shs328 billion in compensation and early works to de-risk the project for international lenders.
