Kenya has embarked on a new partnership with the United Arab Emirates (UAE) to secure funding for the completion of a regional railway.
The project, initially part of China’s Belt and Road Initiative, stalled in 2019 after China withdrew its funding, leaving the railway 468 kilometers short of the Ugandan border.
President William Ruto announced that Kenya is exploring a partnership agreement with the UAE to extend the Standard Gauge Railway, connecting Kenya, Uganda, and South Sudan.
A feasibility study will be conducted to assess the project’s viability and potential to foster regional integration and promote trade.
This development is part of Kenya’s efforts to strengthen ties with the UAE, which has already led to significant economic cooperation.
The two nations signed a comprehensive economic partnership agreement, aiming to boost trade volumes by removing barriers and promoting investments. Kenya is also finalizing a $1.5 billion commercial loan from the UAE for budget support.
The UAE has become a crucial trade partner for Kenya, with trade volumes more than doubling over the last decade.
The UAE is Kenya’s sixth-largest export market and second-largest source of imports, with trade valued at 445 billion shillings ($3.44 billion) in 2023.
