SGR link will cement Mombasa port’s role in regional trade – UG

The Kenya–Uganda Standard Gauge Railway will significantly increase cargo volumes destined for the landlocked country through the Port of Mombasa, Uganda's Consul General to Mombasa, Ambassador Herbert Kiguli, has said.

This will see Ugandan traders increasingly prefer using Mombasa for cargo clearance, as the railway connection is expected to reduce transit time and freight costs between the two countries, while strengthening regional trade within the East African Community (EAC).

Uganda is constructing its 273 km Malaba-Kampala Standard Gauge Railway (SGR) to link with the Kenyan border.

The €2.7 billion (Sh 397.1 billion) railway is being developed by Turkish firm Yapi Merkezi and is projected to conclude by 2028, cutting travel time and drastically lowering freight.

President William Ruto in March this year broke ground for the construction of the Naivasha-Kisumu-Malaba SGR project at the Narok Training Teachers College Grounds. 

The 475 km railway network being constructed by China Communications Construction Company is expected to be completed by June 2027 at an estimated cost of Sh645 billion.

While Ambassador Kiguli noted that the railway project forms part of broader regional transport infrastructure initiatives, aimed at enhancing connectivity and facilitating trade among EAC member states, it is expected to give Mombasa an edge over Dar es Salaam.

The envoy made the remarks during a courtesy call on Kenya Ports Authority (KPA) CEO  Captain William Ruto on Wedensday.

Kenya is reported to be losing between five to eight per cent of high-value transit cargo annually, according to the State Department of East African Community.

This is on inefficiencies along the Northern Corridor mainly non-tariff barriers, which are driving cargo diversion to Dar es Salaam.

The Northern Corridor which runs between Mombasa (Kenya), Uganda, South Sudan, Rwanda, Burundi and Eastern DRC remains the vital lifeline of regional trade, handling over 35.84 million metric tonnes of cargo annually and accounting for more than 80 per cent of Kenya’s transit trade.

While the 1,700 kilometre-long corridor is the most preferred for transit goods by traders, it has continued to face increasing competition from the Central Corridor.

KPA general manager, finance and commercial services, Geoffrey Kavate, who represented the CEO, acknowledged Uganda's critical role in promoting transit trade through the Port of Mombasa.

He noted that cargo to and from Uganda accounts for more than half of the port's total transit volumes, making Uganda the Port of Mombasa's largest transit market and Kenya's leading regional trading partner.

“KPA's remains commitment to supporting initiatives that enhance trade facilitation, improve logistics efficiency, and strengthen economic ties between Kenya and Uganda,” he said.

Uganda accounts  for over 65 per cent of all transit cargo handled at the facility. By the close of 2025, Uganda-bound cargo surged to 10.91 million metric tonnes.

Cargo throughput at the Port of Mombasa reached a record 45.45 million metric tonnes in 2025, up from 40.99 million tonnes in 2024, a 10.9 per cent increase. Container traffic also rose to 2.11 million TEUs, a 5.5 per cent growth year-on-year.

Speaking during a recent media briefing on the port’s 2025 performance outlook, KPA managing director William Ruto said transit cargo grew sharply to 15.88 million tonnes, up from 13.29 million tonnes in 2024, reflecting Kenya’s expanding role as a gateway to the region.