Uganda plans to invest  US$205 million to restore railway linking Kampala to Malaba.

Uganda government is making plans to restore its old railways. The plans is to invest  US$205 million (about Shs 768 billion) in the railway that will link Kampala to Malaba.

The plan upgrade will help boost monthly freight capacity to 120,000 metric tonnes from the current 20,000 tonnes by 2026. This is following delays in securing funding for the standard gauge railway.

Uganda Railways Corporation’s chief financial officer, Stanley Sendegeya said “We keep turning down customers because with the little money from government, amounting to $2 million annually. We can’t handle much business as customers opt to use trucks.”

Uganda has been experiencing difficulty funding the US$2.3 billion Kampala-Malaba segment of the standard-gauge railway. This is due to lack of fund available for the project.

Meanwhile, Uganda’s latest decision came amid reports that Kenya revised downwards its reported earnings from the SGR between Mombasa and Nairobi.


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