By: Chimp reports

Kenya has announced it will commence construction of a critical 262-kilometer extension of its Standard Gauge Railway (SGR) from Naivasha to the Ugandan border at Malaba in January 2026. The announcement was made by President William Ruto during his State of the Nation Address, where he framed the project as a "national imperative" for the country. This extension is strategically designed to position Kenya as the primary logistics hub for East Africa by fully connecting the Port of Mombasa to landlocked neighboring nations.

The project's primary significance lies in its role as the final link in a major regional transport corridor. Once completed, it will seamlessly connect Kenya's SGR to Uganda's upcoming line, creating a continuous, high-speed rail network from the Indian Ocean to the interior of the Great Lakes region. This connection is viewed as the linchpin for unlocking seamless rail connectivity for Uganda, Rwanda, South Sudan, and the eastern Democratic Republic of Congo, all of which rely on the Port of Mombasa for trade.

The economic stakes of the project are substantial. Regional logistics analysts project that the completed railway will drastically reduce cargo transit times between Mombasa and Kampala from the current five days to under 24 hours. Furthermore, it is expected to cut transport costs by up to 30%, a saving that would significantly spur trade volumes, attract foreign investment in manufacturing, and ease the heavy wear and pressure on regional road networks.

To finance this ambitious undertaking sustainably, President Ruto announced the creation of a National Infrastructure Fund. This fund is designed to move away from unsustainable borrowing and will be capitalized through privatization proceeds. The goal is to leverage this public capital to attract substantial private investment from institutional investors, sovereign wealth funds, and pension managers, with an aim to raise ten shillings from investors for every one shilling of public money.

The project is a key component of broader regional integration efforts within the East African Community (EAC) and aligns with the objectives of the African Continental Free Trade Area (AfCFTA). It is specifically part of the Northern Corridor Integration Projects (NCIP), a cooperative framework championed by Kenya, Uganda, and Rwanda to bolster shared infrastructure and economic ties.

The announcement synchronizes Kenya's infrastructure drive with Uganda's own progress, as Uganda signed a $2.2 billion contract in early 2025 to build its SGR section from Malaba to Kampala. This coordination places both nations on a concurrent path to operationalize the entire cross-border cargo corridor by the end of the decade, marking a significant step in regional cooperation.

The January 2026 launch date sets the stage for one of the most ambitious transport infrastructure projects in East Africa's recent history. Its successful implementation will require extensive coordination on land compensation, cross-border interoperability, and public-private partnerships, but it promises to create a logistics spine that will define regional trade and economic growth for the next 50 years.