Kenya and Tanzania have reignited efforts to expand their standard gauge railway (SGR) networks into a cohesive regional system, aiming to connect with landlocked neighbors like Uganda, Rwanda, Burundi, and the DRC. Kenya is pushing forward with its SGR extension from Naivasha to Malaba and Kisumu, targeting completion of the Malaba section by June 2027, which would directly link to Uganda's planned SGR. To fund this ambitious project without over-relying on Chinese loans, Kenya is exploring an innovative financing model known as securitisation, which involves converting railway levy revenues into tradable securities. Meanwhile, Tanzania is expanding westward toward Lake Tanganyika and planning new lines from Tanga to Musoma and Mtwara to Mbamba Bay, using a mix of external financing, domestic revenues, and public-private partnerships to manage costs.While both nations are competing to become the preferred commercial gateway for the region, cooperation is also advancing. In May 2026, Kenya and Tanzania signed a bilateral agreement to revive the Voi–Mwatate–Taveta railway line, connecting it to the SGR to cut freight times to northern Tanzania. The East African Community is actively supporting these efforts by working to harmonize railway standards and remove cross-border barriers, ensuring that once completed, these lines will facilitate seamless trade and movement across the region. This dual approach of competition and collaboration reflects a shared vision for deeper economic integration in East Africa. (ICE NAIROBI)

Fonte notizia: Business Daily