Kenya is in talks with the United Arab Emirates (UAE) to secure funding for the completion of a key regional railway project, following a reduction in financial support from China. President William Ruto announced that the discussions aim to extend the Standard Gauge Railway (SGR) linking the port of Mombasa to neighboring landlocked countries, including Uganda and South Sudan.
Originally part of China's Belt and Road Initiative, the railway project stalled in 2019 when Beijing withdrew its support, leaving the line 468 kilometers short of the Ugandan border. In light of this, Ruto revealed on X (formerly Twitter) that Kenya is exploring a potential partnership with the UAE to continue the project. A feasibility study will be conducted to assess the benefits of extending the railway, which is seen as crucial for regional integration and increased trade.
The discussions with the UAE are part of broader efforts by Ruto’s administration to strengthen ties with the Gulf state. Since taking office in September 2022, Ruto has prioritized enhancing relations with the UAE, including finalizing a $1.5 billion commercial loan for Kenya’s budget support. On Tuesday, both nations signed a comprehensive economic partnership agreement aimed at boosting trade, simplifying customs processes, and encouraging investment.
Kenya’s trade with the UAE has grown significantly in recent years, with the UAE now being Kenya’s second-largest source of imports and the sixth-largest export market. In 2023, trade between the two countries reached a value of 445 billion shillings ($3.44 billion), with Kenya exporting agricultural products and importing petroleum, machinery, and chemicals. Additionally, the UAE’s state-owned oil companies, ADNOC and Emirates National Oil Company, have agreed to provide Kenya with oil on extended credit terms, shifting from the previous open tender system.
As Kenya seeks to overcome the funding challenges caused by China’s withdrawal, the partnership with the UAE represents a promising new direction for the completion of the SGR and continued economic collaboration.
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