Kenya has turned to the United Arab Emirates (UAE) to seek funding for the extension of the Standard Gauge Railway (SGR) from Naivasha to Malaba after China Exim Bank cut funding to the projects.
The new railway line is a part of the East African Railway Master Plan that aims to improve connectivity and trade in the region.
In a statement on Tuesday, President Ruto disclosed that Kenya has open talks with the Arab Nation about a deal for the project financing after meeting UAE officials in Abu Dhabi.
“We are exploring a partnership agreement with the United Arab Emirates to extend the Standard Gauge Railway to connect Kenya, Uganda, and South Sudan,” said President Ruto on Tuesday.
“As part of the plan, we have agreed to conduct a feasibility study over the extension of the SGR due to its capacity to foster regional integration and promote trade,” he further noted.
The railway line construction sopped in Naivasha after China cut funding due to internal and external challenges.
The scarcity of funding has delayed the completion of the project, which kicked off in 2014. In addition, the work on the project was delayed due to the lack of a land compensation plan.
In December 2024, Ruto’s administration reaffirmed its commitment to extend Kenya’s SGR from Naivasha to Malaba.
The move comes despite the International Monetary Fund (IMF) expressing concerns about Kenya’s plan to take commercial loans from the UAE. The IMF noted that Kenya is at a high risk of debt distress, and the move could expose the country to foreign exchange risks.
