Uganda Appoints Citibank to Arrange €2.7 Billion for SGR Link

Finance ministers from Kenya, Uganda, and Rwanda have reached a consensus to prioritize the funding of the Standard Gauge Railway (SGR), marking a coordinated effort to complete the missing links in the regional transport corridor. The agreement was finalized during meetings held on the sidelines of the 2026 IMF and World Bank Spring Meetings in Washington, DC.

Uganda has taken a concrete step in this regional push by appointing Citibank as the lead arranger and coordinator for the €2.7 billion (approximately $3.2 billion) required for the Malaba-Kampala segment. This 270-kilometer section is designed to connect the Ugandan capital to the Kenyan border, linking with the existing network that runs to the Port of Mombasa.

Ramathan Ggoobi, Uganda’s Permanent Secretary and Secretary to the Treasury, confirmed that the government has already contracted the construction of this line to the Turkish firm Yapi Merkezi. While preliminary works have commenced using domestic resources, the full-scale construction remains dependent on the finalization of this external financing package.

The move toward Citibank and the World Bank signals a change in strategy for Uganda, which previously sought funding from Chinese lenders. The World Bank, through Division Director Qimiao Fan, indicated that it is currently evaluating multiple financing options to support the project, citing its potential to reduce regional cargo costs and improve trade competitiveness.

Kenya’s Cabinet Secretary for Finance, John Mbadi, stated that Nairobi remains committed to extending its own SGR line from Naivasha through Kisumu to reach the Malaba border. President Ruto has previously emphasized that these extensions are vital for the viability of the entire Northern Corridor, which is intended to eventually reach Rwanda and the Democratic Republic of Congo (DRC).

Rwanda’s Finance Minister, Yusuf Murangwa, reaffirmed that Kigali is ready to initiate its portion of the rail project once the line reaches the Ugandan border. The ministers jointly emphasized that the economic success of the SGR depends on all partner states fulfilling their commitments to provide a continuous rail link from the Indian Ocean into the Great Lakes region.

The Malaba-Kampala line is expected to carry up to 25 million tonnes of cargo annually once operational. Projections suggest the rail link will significantly lower the cost of moving a 40-foot container from Mombasa to Kampala, which currently costs roughly $3,500 by road. By shifting heavy freight to rail, officials also expect to reduce the high maintenance costs associated with the regional road network.