Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Construction of a standard gauge railway (SGR) along the Northern Corridor connecting Mombasa (Kenya) through Nairobi and Malaba to Kampala (Uganda) and extending to Kigali (Rwanda), with a branch line from Malaba to Juba (South Sudan), establishing a modern railway backbone for East Africa.
Objectives
Develop a modern high-capacity standard gauge railway along the Northern Corridor to enhance regional connectivity and reduce transportation costs; provide landlocked countries (Uganda, Rwanda, South Sudan) with efficient access to the Port of Mombasa; enhance trade competitiveness through reduced logistics costs; facilitate efficient movement of cargo and passengers along East Africa's busiest transport corridor; support regional industrialization through efficient bulk transport; reduce road maintenance costs through modal shift; improve environmental sustainability through lower-carbon transport; and create substantial employment during construction and operation phases.
Strategic Importance
The Mombasa-Kigali SGR represents a flagship project for East African integration, modernizing the region's primary transport corridor that handles over 85% of EAC trade. By replacing the century-old narrow gauge colonial railway with modern standard gauge infrastructure, the project dramatically reduces transport costs and times for landlocked countries, enhancing their trade competitiveness. The railway forms the backbone of the Northern Corridor Economic Zone, supporting industrial development, resource extraction, and agricultural growth while reducing the environmental footprint of the region's transportation. With the Mombasa-Nairobi section already operational and demonstrating significant economic benefits, the project has proven its transformative potential for the entire region. The line's subsequent extensions will complete a modern railway network connecting East Africa's major economic centers to global markets through the Port of Mombasa.
Technical Specifications
Technology & Design
The railway employs standard gauge (1,435mm) technology with diesel traction and provision for future electrification. Advanced design features include modern signaling and train control systems, substantial civil works to navigate challenging terrain, intermodal terminals at key locations, and advanced communications systems.
Capacity & Size
The railway network will extend approximately 2,700 km across four countries: Kenya section (Mombasa-Malaba): 900 km; Uganda section (Malaba-Kampala-Rwanda border): 550 km; Rwanda section (Uganda border-Kigali): 200 km; South Sudan branch (Malaba-Juba): 450 km. Design capacity includes freight operations of up to 22 million tons annually and passenger capacity of 10 million journeys per year.
Technical Details
Standard gauge railway (1,435mm) with axle load capacity of 25 tons; Maximum gradient of 1.2% on main routes; Maximum speed of 120 km/h for passenger services and 80 km/h for freight; Modern signaling and communications systems; Double-stack container clearance on main freight routes; Substantial bridges, viaducts and tunnels to navigate challenging terrain; Integrated passenger stations with multi-modal connectivity; Modern freight terminals with container handling facilities
Development, Implementation & Financial Details
Development Timeline
Kenya section (Mombasa-Nairobi): Completed and operational since 2017; Kenya section (Nairobi-Malaba): Construction 2020-2025; Uganda section (Malaba-Kampala): Financing secured 2023, construction 2024-2028; Rwanda section (Kampala-Kigali): Financing arrangements 2024-2026, construction 2026-2030; South Sudan branch (Malaba-Juba): Financing arrangements 2027-2029, construction 2029-2035
Latest Implementation Updates
UPDATED2025-04-25 — Railway Gazette: Uganda SGR faces delays pending financial close on ~US$2.3bn debt portion for Eastern Route; preparation activities continue. [https://www.railwaygazette.com/infrastructure/financial-close-delay-holds-up-ugandan-standard-gauge-railway/68708.article]
2025-05-22 — Reuters: Uganda signs **US$800m** financing with Islamic Development Bank for trade-enabling projects including a railway to connect with Kenya’s SGR (access to Mombasa). [https://www.reuters.com/world/middle-east/uganda-signs-800-million-financing-deal-with-islamic-development-bank-2025-05-22/]
2025-08-26 — Nile Post: Government signals SGR implementation entry following assembly of a financing structure and contracting steps (local report). [https://nilepost.co.ug/news/283033/uganda-secures-financing-for-standard-gauge-railway-project]
Financing Structure
The project employs a phased sovereign financing approach with: bilateral financing from China for the Kenyan section (Mombasa-Nairobi-Malaba); multilateral development bank financing (AfDB, World Bank) for subsequent sections; national budget allocations from participating countries; and potential for PPP arrangements for operations and specific segments. Financing for the Mombasa-Nairobi section has been secured and implemented, while arrangements for other sections are at various stages.
Capital Structure
Base infrastructure (85%): Sovereign financing through loans and national budget allocations; Operations and rolling stock (15%): Potential for private sector participation through concession arrangements
Project Timeline
Start Date
November 2013
Expected Completion
December 2035
Development Timeline
Kenya section (Mombasa-Nairobi): Completed and operational since 2017; Kenya section (Nairobi-Malaba): Construction 2020-2025; Uganda section (Malaba-Kampala): Financing secured 2023, construction 2024-2028; Rwanda section (Kampala-Kigali): Financing arrangements 2024-2026, construction 2026-2030; South Sudan branch (Malaba-Juba): Financing arrangements 2027-2029, construction 2029-2035
Project Status History
Status 2020
Structuring
Status 2022
Transaction Support
Status 2024
Financial Close
Additional Project Details
Preparation Funding Gap
USD 0.00M
Construction Timeline
Kenya section (Mombasa-Nairobi): 2014-2017 (completed); Kenya section (Nairobi-Malaba): 2020-2025; Uganda section (Malaba-Kampala): 2024-2028; Rwanda section (Kampala-Kigali): 2026-2030; South Sudan branch (Malaba-Juba): 2029-2035
Legal & Financial Advisors
PricewaterhouseCoopers and CPCS Transcom providing transaction advisory services; legal advisory services by multiple firms including Dentons and Trinity International LLP
Market Analysis
Market Analysis
The Northern Corridor currently handles approximately 35 million tons of freight annually, with projections showing growth to 55 million tons by 2030. The upgraded railway is designed to capture at least 40% of this volume from road transport. Passenger demand is substantial, with the operational Mombasa-Nairobi section carrying over 5 million passengers annually.
Market Demand
The fully developed railway network will have capacity for up to 22 million tons of freight annually and 10 million passengers. Initial segments have demonstrated strong demand, with the Mombasa-Nairobi section operating at approximately 90% of design capacity for passenger services and 60% for freight.
Key Stakeholders
Project Sponsor
Kenya Railways Corporation, Uganda Railways Corporation, East African Community
Key Parties
Kenya Railways Corporation, Uganda Railways Corporation, Rwanda Transport Development Agency, South Sudan Ministry of Transport, East African Community Secretariat, Northern Corridor Transit and Transport Coordination Authority (NCTTCA)
Investors
China Exim Bank, African Development Bank, World Bank, European Investment Bank, Standard Bank Group
Contractors & Operators
China Road and Bridge Corporation (CRBC) for the Mombasa-Nairobi section; other sections pending procurement
Risk Assessment
General Risk Assessment
Key risks include: financing challenges for segments beyond Kenya; cross-border coordination complexities; challenging terrain in mountainous sections (particularly Rwanda); debt sustainability concerns; and traffic ramp-up uncertainties. Risk mitigation strategies include phased implementation approach, structured regional coordination through EAC mechanisms, and comprehensive traffic development initiatives.
Regulatory Risks
Requires harmonization of railway regulations, customs procedures, and technical standards across four countries. The East African Community framework provides a foundation for regulatory alignment, but implementation challenges remain regarding consistent enforcement and operational integration.
Impact Assessment
Environmental Impact
Comprehensive Environmental and Social Impact Assessments have been completed for all sections. Key environmental considerations include wildlife migration patterns in Kenya, watershed protection throughout the corridor, and climate resilience measures. The Mombasa-Nairobi section incorporated innovative wildlife crossings that have demonstrated effectiveness for large mammal migrations.
Social Impact
The railway has generated approximately 30,000 direct jobs during construction of completed sections, with an additional 5,000 permanent jobs in operations. The project delivers substantial socioeconomic benefits including reduced transport costs (40-60% compared to road), improved market access for agricultural regions, enhanced urban connectivity, skills development in modern railway technologies, and reduced isolation for landlocked countries.
Investment Opportunities
Private Sector Opportunities
Significant opportunities exist for private sector participation in railway operations, rolling stock procurement and maintenance, station commercial development, logistics facilities, training centers, and digital systems. The operational models being developed provide specific frameworks for structured private participation while ensuring public interest objectives.
Next Steps & Agreements
Next Steps
Complete Kenyan section (Nairobi-Malaba); finalize financing arrangements for Uganda, Rwanda, and South Sudan sections; establish corridor management framework; advance capacity building for integrated railway operations; implement operational improvements for completed sections
Offtake Agreements
Inter-governmental agreements between the participating countries establish operational frameworks, track access arrangements, and cross-border procedures. The Northern Corridor Integration Projects framework provides coordination mechanisms for harmonized implementation and operations.
Contact Information
Eng. Philip Mainga, Managing Director, Kenya Railways Corporation, Email: md@krc.co.ke; Eng. Charles Kateeba, Managing Director, Uganda Railways Corporation, Email: info@urc.go.ug
