Business 19 March 2026 Daily Monitor (Uganda)
Ruto Warns Kenya Risks Losing EAC Trade Dominance Without SGR Upgrades
Kenyan President William Ruto cautioned that Kenya's role as the primary trade gateway for East African countries could slip away due to inadequate infrastructure, urging swift investments in the Standard Gauge Railway (SGR) extensions. He highlighted rising cargo volumes and delays that threaten competitiveness amid regional alternatives. Source: https://www.monitor.co.ug/uganda/news/national/kenya-might-lose-its-key-trade-route-says-ruto-5397130
Kenyan President William Ruto has urged his country to bolster infrastructure to maintain its status as the key trade route for East African Community (EAC) nations accessing the Indian Ocean.
Speaking at the launch of the second phase of the Naivasha-Kisumu-Malaba Standard Gauge Railway in Narok County, Ruto emphasized that Kenya’s position is not assured without action. He announced groundbreaking for a 107km SGR section from Mombasa to Malaba via Busia the following day.
The current SGR ends at Naivasha, causing delays that inflate costs for landlocked neighbors like Uganda. Cargo from Mombasa now takes 80 hours to Malaba and over 100 hours to Kampala, despite handling 7.37 million tonnes in the first half of 2025—70% bound for Uganda.
Ruto noted that efficient transport is vital for Uganda, Rwanda, Burundi, South Sudan, and DRC, securing Kenya’s hub in continental trade. Plans include an economic trade zone at Malaba to boost cross-border commerce.
Uganda, frustrated by delays, has begun its SGR from Malaba to Kampala after securing funding, including Euro405m from the Islamic Development Bank. President Museveni has criticized obstructions to sea access, warning of future conflicts, while Uganda signed an MoU with Tanzania for alternative rail links to DRC and South Sudan.
The Kenyan SGR extension is projected to cost over $5.5 billion, with Uganda’s 272km section at $3 billion.
Source: Daily Monitor (Uganda)