The quest to improve the mobility of goods and services across Kenya and Uganda has received a boost following the official launch of the construction of the Standard Gauge Railway (SGR) to Malaba.
Yesterday, President William Ruto and his Ugandan counterpart Yoweri Museveni unveiled the start of the construction of the line even as questions linger over the funding model of the Sh500 billion project.
The ceremony highlighted the project's historical significance, drawing parallels to the construction of the Uganda Railway over a century ago.
While the original railway served colonial interests linking Mombasa to the interior for resource extraction, the new SGR aims to reverse that legacy by empowering local economies and enhancing regional trade.
Speaking at Kibos in Kisumu during the launch of Kisumu to Malaba SGR, President Ruto said that this is a proven model, one that has delivered rapid transformation by aligning infrastructure with industry, trade, and investment.
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Ruto framed the SGR expansion as part of a long historical continuum, drawing parallels with the colonial-era Uganda Railway construction that fundamentally reshaped the economic and political geography of East Africa more than a century ago.
“It is in moments such as this, when we gather as a nation and as a region to break ground for infrastructure development that will define generations, that the destinies of our people, our cities, and our nations are shaped,” said Ruto, as he addressed a crowd that had gathered despite persistent rains.
Ruto traced the origins of railway development in the region to nearly 130 years ago, when the British colonial administration conceived the Uganda Railway, primarily aimed at linking the Indian Ocean port of Mombasa to the interior of East Africa. While the initial objective was strategic to secure territory, control movement, and facilitate resource extraction, the railway ended up transforming the region in ways that outlived colonial rule.
In its original design, the line stretched from Mombasa through Nairobi and the Rift Valley to Kisumu on the shores of Lake Victoria, from where goods and passengers would continue their journey across the lake into Uganda. But beyond its logistical function, the railway reshaped settlement patterns and economic fortunes.
Ruto noted that Mombasa was reinforced as the primary gateway of trade, while Machakos, once an administrative centre, declined after being bypassed by the railway. Nairobi, then a swampy and flood-prone rail depot established in 1899, rose to prominence precisely because of its strategic position along the railway line.
“Without the railway, Nairobi as we know it today might never have existed,” he said, emphasising how infrastructure investments can determine the trajectory of cities and nations.
Beginning in the 1920s, the railway was extended from Nakuru across the so-called White Highlands, reaching Eldoret in 1924, and later extending through Malaba into Uganda, connecting Tororo, Jinja, and eventually Kampala by 1931. This expansion created a continuous transport artery into the heart of East Africa, fueling agricultural production, industrial growth, and administrative consolidation.
Eldoret, for instance, grew into a major agricultural hub, while Jinja developed into an industrial centre. Kampala’s influence as a political and commercial capital was also strengthened by its direct rail connection to the coast.
“That is the lesson of history,” Ruto said. “Infrastructure development does not just connect places; it often creates them. It determines where opportunity lives, where investment flows, and where prosperity takes root.”
Despite its transformative impact, the metre gauge railway that once served as the backbone of regional commerce was gradually neglected, falling into disrepair over the decades. Its inefficiencies, coupled with increased reliance on road transport, led to higher logistics costs and reduced competitiveness.
He added: "Even the naysayers and those who never believed in what we are doing and said nothing is happening confess that so much is going on. They agree Kenya is undergoing transformation."
According to government data, the SGR has already transported more than 15 million passengers and over 45 million tonnes of freight in the past eight years, contributing to reduced transport costs and improved efficiency.
With the planned expansion, freight costs are projected to decline by at least 40 per cent per tonne per kilometre, while transit times are expected to reduce by nearly 30 per cent. The shift of cargo from road to rail is also expected to ease pressure on highways, reducing maintenance costs and improving road safety.
The President further announced that the government will set aside 1,000 acres of land in Kibos for the establishment of a Special Economic Zone linked to the railway. The zone is expected to attract investment, support industrialisation, and create employment opportunities for residents.
He also assured residents of Busia that the railway will eventually be extended to the border town, unlocking additional cross-border trade opportunities and strengthening economic ties with Uganda.
On his part, Museveni defended the railway project as central to Africa’s economic transformation, arguing that efficient transport systems are essential for reducing the cost of doing business and enhancing competitiveness.
“We plan to transfer all heavy cargo to the railway and petroleum products to the pipeline. This will leave the roads for passengers and light cargo,” he said.
Museveni pointed out that the overreliance on road transport has led to inefficiencies, with all types of cargo, including heavy goods, being transported on highways, increasing costs and congestion.
He stressed that for Africa to industrialise, it must address the high cost of transport, energy, and finance, which he described as key factors that have made African goods uncompetitive both locally and internationally.
“The railway and electricity are the bone marrow of the economy,” Museveni said. “If we do not address these, our goods will remain uncompetitive.”
He also underscored the role of government in strategic sectors, noting that state involvement in railways, electricity, and banking can help ensure affordability and support manufacturing.
The launch event was attended by several leaders, including ODM party leader Oburu Oginga, Prime Cabinet Secretary Musalia Mudavadi, and other regional and national officials, signalling strong political backing for the project.
However, even as leaders celebrated the milestone, critical questions remain unanswered. Observers have raised concerns over how the multi-billion-shilling project will be financed, especially in light of Kenya’s existing public debt. Others have questioned the transparency of procurement processes, the adequacy of compensation for affected landowners, and the environmental impact of the railway’s expansion through ecologically sensitive areas.
President Museveni said the railway project is key to reorganising the region’s transport system.
He explained that heavy cargo, currently transported by road, will be shifted to rail, while petroleum products will be moved through pipelines.
Museveni added that integrating rail with water transport will further enhance efficiency, leaving roads primarily for passenger travel and light cargo.
Meanwhile, ODM party Oburu challenged President Ruto and his Ugandan counterpart Museveni to work on a joint mechanism that will see an end to frequent conflicts in Lake Victoria pitting Kenyan fishermen and the Ugandan authorities.
According to the Siaya Senator, the three countries that share the lake should embark on a joint approach in managing the freshwater lake to prevent conflict.
"Your Excellency President Museveni, I appeal to you to make Lake Victoria a common user facility so that we can manage the security of the lake jointly to end cases of conflicts in the lake." He stated.
"Let it be managed the way the founding fathers of our nation were managing it without any conflict at all," he added.
Report by Olivia Odhiambo, Clinton Ambujo and Rodgers Otiso