Kenya has initiated talks with the United Arab Emirates (UAE) to secure funding for completing a regional railway, according to President William Ruto, after China reduced infrastructure support for the project. The railway, intended to connect Kenya’s port of Mombasa with its landlocked neighbours as part of China’s Belt and Road Initiative, halted in the Rift Valley in 2019, 468 kilometres (290 miles) from the Ugandan border, following Beijing’s withdrawal of funding.
“We are seeking a partnership with the UAE to extend the Standard Gauge Railway, linking Kenya, Uganda, and South Sudan,” Ruto shared on X late Tuesday, after meeting UAE officials in Abu Dhabi. Both countries will conduct a feasibility study on the railway extension, he added, “because of its potential to enhance regional integration and stimulate trade.”
Since taking office in September 2022, Ruto has strengthened relations with the UAE, and Kenya is also nearing the completion of a USD 1.5B commercial loan from the UAE for budgetary support. On Tuesday, the two nations signed a comprehensive economic partnership agreement to enhance trade by eliminating barriers, streamlining customs, and encouraging investment.
Trade between Kenya and the UAE has more than doubled over the past decade, according to Ruto’s office. The UAE is Kenya’s sixth-largest export destination and its second-largest source of imports. In 2023, the trade value reached 445 billion shillings (USD 3.44B), with the UAE purchasing agricultural goods and Kenya importing petroleum, machinery, and chemicals. The UAE’s Abu Dhabi National Oil Company (ADNOC) and Emirates National Oil Company were among the three Gulf companies selected by Ruto’s administration in 2023 to supply Kenya with oil on extended credit terms, marking a shift from the previous open tender approach.
