The Ministry of Finance has released UGX 305.2 billion to the Ministry of Works and Transport paving the way for the immediate commencement of the Standard Gauge Railway (SGR) project.
The Turkish construction giant, Yapi Merkezi has been given the green light to break ground marking a major milestone in Uganda’s ambitious infrastructure development plan.
For years, Uganda’s SGR project has been delayed by funding uncertainties, contractor disputes and shifting political dynamics.
Originally planned as part of the East African SGR network linking Kenya, Uganda, Rwanda, and South Sudan, Uganda’s section of the railway has faced multiple delays since its inception in the early 2010s.
The project was meant to modernize the country’s transport sector replacing the outdated and inefficient colonial-era railway with a high-speed system capable of handling larger cargo volumes and reducing road congestion.
Analysts suggest that the government is under increased pressure to fast-track infrastructure projects ahead of the 2026 general elections.
Additionally, Uganda’s heavy reliance on Kenya’s port of Mombasa for imports and exports has long exposed its economy to logistical bottlenecks, fluctuating costs, and inefficiencies.
A functional SGR would not only reduce transportation costs but also enhance Uganda’s economic competitiveness in the region.
The selection of Yapi Merkezi as the contractor has stirred mixed reactions. The Turkish firm boasts an impressive track record having successfully executed major railway projects across Africa including in Tanzania and Ethiopia.
However, opposition warn that the firm’s involvement must be closely monitored to avoid cost overruns, substandard work or contractual disputes that have plagued similar projects in the region.
While the announcement has been met with optimism in government circles, opposition leaders and civil society organizations are not convinced.
Some argue that investing such a massive sum into the railway project at a time when Uganda faces pressing issues in healthcare, education and job creation is financially reckless.
