Uganda has signed a Sh505 billion contract with Turkish construction firm Yapi Merkezi to build a 272-kilometer section of the Standard Gauge Railway (SGR) from Malaba, on the Kenyan border, to the capital, Kampala. This project, part of Uganda’s broader infrastructure plan, aims to improve regional trade and transport links by connecting Uganda to Kenya’s rail network and the port of Mombasa, facilitating access to the Indian Ocean.

The contract was signed on October 14, 2024, and the railway will be a key segment of a planned 1,700-kilometer electric railway network designed to boost trade and reduce transport costs in the region. The project is expected to be completed within 48 months and will be financed through a combination of Uganda’s own resources and external export credits.

This deal comes after Uganda terminated an earlier agreement with a Chinese firm due to funding delays, making Yapi Merkezi a crucial partner for Uganda’s renewed infrastructure push. The Turkish firm is also involved in similar railway projects in neighboring Tanzania.