The move marks a major pivot in Uganda’s infrastructure financing strategy following earlier reliance on China-backed arrangements that failed to materialise.

The government had awarded the railway construction contract to China Harbour Engineering Company (CHEC) in 2015 on the condition that it would secure financing from the Chinese government. However, repeated delays led to the contract’s cancellation in January 2023.

Ramathan Ggoobi, permanent secretary at Uganda’s Finance Ministry, said Citibank will act as lead arranger, coordinating funding for the railway project.

He made the remarks during a meeting of finance ministers from Uganda, Kenya and Rwanda in Washington, held on the sidelines of the IMF and World Bank 2026 Spring Meetings.

Uganda has also opened discussions with the World Bank to support the project, which is expected to improve regional connectivity, reduce freight costs, and strengthen trade competitiveness across East Africa.

Uganda courts Western lenders

Uganda has also opened parallel discussions with the World Bank to support the project, which is central to its broader infrastructure push aimed at improving trade efficiency and reducing logistics costs across East Africa.

The project was revived in October 2024 when Uganda signed a new construction deal with Turkish firm Yapi Merkezi to build the line connecting Kampala to Malaba on the Kenyan border.

Once completed, it will link Uganda to Kenya’s rail network and the port of Mombasa on the Indian Ocean.

According to Reuters, earlier this month the Washington-based global lender confirmed it was considering “an array of potential financing options” for the project.

Source: Africabusinessinsider