Kenya–Uganda Rail Corridor Talks Enter Final Stage: New Joint Deal Expected to Cut Cargo Costs 40%

Nairobi/Kampala

Uganda and Kenya are inching closer to concluding a new Integrated Rail Corridor Agreement that will coordinate investment in Standard Gauge Railway (SGR) upgrades, locomotive financing, and cross-border cargo management systems.

Officials expect that once signed, the deal will allow cargo from Mombasa to move on a single digital logistics platform, reducing delays, customs duplication, and operating costs by an estimated 30–40%.

If implemented, the corridor would become East Africa’s most efficient bulk transport route, reducing pressure on road networks and lowering commodity prices for regional consumers.

Why It Matters:

Could significantly cut logistics costs for Ugandan traders.

Strengthens regional economic integration.

May shift cargo away from roads to rail, improving safety and environment.

What to Watch:

Financing details for Uganda’s SGR leg.

Whether Tanzania makes a counter-offer to attract cargo to Dar es Salaam.

Impact on fuel, cement, and food prices.