Kenya has revealed that it is in talks with the United Arab Emirates (UAE) to extend its Standard Gauge Railway (SGR) to Uganda and South Sudan, a move that could significantly enhance regional integration and boost trade across East Africa.

The announcement was made by President William Ruto, who stated on social media platform X that Kenya is exploring a partnership agreement with the UAE to extend the SGR, connecting Kenya, Uganda, and South Sudan. As part of this initiative, an agreement has been reached to conduct a feasibility study for the railway extension, highlighting its potential to enhance regional integration and boost trade across East Africa.

The proposed extension comes on the heels of Uganda's agreement with Yapi Merkezi Holdings AS to finance its segment of the SGR, connecting the capital, Kampala, to the Kenyan border. However, a previous attempt to link Uganda to Kenya's port failed when China scrapped funding for the rest of the project after building almost 600 kilometers of the railroad. As a result, Uganda has largely relied on trucking to access the port for its transportation needs.

President Ruto's announcement was made during his two-day summit in Abu Dhabi, where he held discussions with UAE Investment Minister Mohamed Hassan Alsuwaidi, focusing on enhancing economic partnerships and fostering investment opportunities. The discussions also included the UAE's commitment to invest in the Galana-Kulalu project and other agricultural initiatives aimed at bolstering Kenya's food security agenda.

In addition to the railway extension, Kenya is also seeking a $1.5 billion loan from Abu Dhabi to help close its budget-financing gap. The funding from the oil-rich emirate would boost Kenya's foreign-currency reserves and support the Kenyan shilling. This move aligns with Gulf states' broader strategy, including the UAE and Qatar, to channel their petrodollars into Africa, strengthening their influence in the region while balancing the dominance of global powers such as the US, China, and Russia.

The potential extension of the SGR to Uganda and South Sudan could have significant implications for regional trade and integration. The railway line could facilitate the transportation of goods and people across the region, boosting economic growth and development. Furthermore, the project could also create new opportunities for investment and job creation, contributing to the region's economic prosperity.

As the discussions between Kenya and the UAE continue, it remains to be seen how the project will unfold. However, one thing is clear: the potential extension of the SGR to Uganda and South Sudan could be a game-changer for regional integration and trade in East Africa.