Kenya continued with its efforts to woo back Uganda to the Standard Gauge Railway (SGR) project, with President Uhuru Kenyatta saying his administration plans to stop transportation of cargo by road.

Kenya has offered several lucrative deals aimed at enticing Uganda to build its SGR line to Kampala. Yesterday, Uhuru offered Uganda land to develop a dry port for its cargo in Naivasha.

Ongoing reforms

The President also promised to continue with ongoing reforms to improve efficiency at the port of Mombasa, removal of non-tariff barriers such as corruption and red tape in clearance of cargo. Naivasha is being developed into an industrial park. 

Museveni had developed a cold feet on SGR. Ugandan officials have been blaming Kenya for failing to commit to financing the remaining two SGR phases, that is, Naivasha to Kisumu and Kisumu to Malaba sections of the line.

Kenya secured a Sh150 billion loan from China to extend the railway line from Nairobi to Naivasha after  completion of the Mombasa-Nairobi section. The offer of land to Uganda comes just a day after President Yoweri Museveni renewed commitment to the joint development of the SGR line to Kampala.

The latest development means Kenya will offer Kampala autonomy to take charge of its own goods and any transshipment to DRC and Rwanda, that passes through their territory.

Uhuru said SGR will have reached Naivasha by August this year and therefore the dry port will be ideal for transit cargo.“I have confirmed to President Museveni that with that development in Naivasha and then moving the SGR to Malaba, goods will be able to move from Mombasa to Malaba in just two days,” the President said.

Uhuru said the government was committed to the implementation of its long-term plan to move all cargo from the road to the SGR.

Concessional loans

Kenya is keen to see Uganda use SGR to transport its cargo so as to boost the viability of the multi-billion shilling project and raise enough funds for repayment of the commercial and concessional loans from China Eximbank used for construction of the modern railway line.

The Head of State said reforms meant to eliminate all non-tariff barriers that slow down movement of cargo along the Northern corridor are still going on. In the reforms, all roadblocks and unnecessary weighbridges are set to be removed from the road. Weighbridges will only be at the point of entry.

Uhuru encouraged Museveni to embrace SGR project, saying the railway line will reduce the cost of transport for Ugandan traders importing and exporting goods through port of Mombasa.  “SGR will in the long run improve efficiency of Mombasa port to the benefit of our people,” he said.

The two Heads of State toured Mombasa port, SGR infrastructure,  where they were taken through progress achieved since SGR came into operation.

Before Museveni then rode on Madaraka Express to Nairobi and became the first visiting Head of State to ride on Madaraka Express.

The Heads of State were told that efficiency in the movement of cargo has improved immensely since the commercial operation of freight services commenced on January 1, 2018.

Source: Media Max

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