How China-backed SGR unlocks economic potential of Northern and Central Corridors

In June 2019, when I sat down with the then Transport Cabinet Secretary James Macharia and Ugandan Finance Minister Matia Kasaija on the sidelines of the first China-Africa Trade Expo in Changsha, the city of the Han Dynasty, it was clear that geopolitical tensions in the East African region were the main reason for the delay in the full implementation of the Standard Gauge Railway (SGR) protocol.

Kampala was hesitant to implement the SGR protocol by constructing the railway line from Uganda's capital to Malaba before Nairobi extended its line to the border.

However, the Jubilee administration felt let down by its peers. During the Belt and Road Initiative (BRI) forum in Beijing, President Uhuru Kenyatta emphasised that every country should implement the agreements of the initiative, just like Nairobi had done.

When Kenya, with the help of its development partner, the Asian economic giant, launched the SGR on December 1, 2017, it was seen as a game-changer, facilitating cargo transportation and enhancing people-to-people exchanges.

At that time, Nairobi was monopolising the rail sector. However, seven years later, Kenya is facing stiff competition from Tanzania and even Uganda, which has signed a deal with the Turkish firm Yapi Merkezi to construct its own railway within 48 months.

While the move by East African countries to join the railway league is good for regional integration and trade, Kenya needs to rethink its SGR plan to avoid being left behind by its peers, who are now building electric railways, unlike Nairobi's diesel-powered SGR.

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In 2014, Kenya, along with its Northern Corridor Partner States—Uganda, Rwanda, and later South Sudan—signed a regional SGR Protocol to develop a seamless transport system interconnecting their cities and connecting them to the coast of Mombasa.

With Kenya now in fresh talks with Beijing about extending the SGR from Naivasha to Malaba, supported by President Xi Jinping and Kenya's President William Ruto, the East African economic powerhouse must remain relevant and make the Port of Mombasa attractive to avoid losing business to Dar es Salaam.

Nairobi will be forced to revamp its existing Mombasa-Naivasha line to electric power. The ongoing talks, which are set to conclude in December, should focus on electric SGR rather than the diesel-powered one.

Although Kenya initially started with a diesel-powered train, China has shown a willingness to help Nairobi upgrade its line to electric.

The deal inked four years ago between the Kenya Electricity Transmission Company (Ketraco) and China Electric Power Equipment and Technology Company should be expedited to make Kenya’s dream of having an electric train, like Tanzania and Uganda’s proposed one, a reality.

Regardless of whether a country has a diesel or electric SGR, the Port of Mombasa and Kampala both key cities along the Northern Corridor Infrastructure Projects Protocol—are essential for unlocking economic growth and fostering a conducive investment environment for local and foreign investors.

When conceptualising this idea, China, through the BRI, or modern Silk Road, aimed to enhance transport efficiency by providing a modern, fast, reliable, and high-capacity railway network, reducing transit times, lowering transport costs, and facilitating the movement of goods and passengers.

Once the Kampala-Malaba line begins construction in November, it will revolutionise trade in the region by increasing freight services and raising cargo volumes compared to current levels.

According to Kenya Railways, the SGR has achieved 2,437 days of safe operations since commercial freight began on January 1, 2018. It has transported over 12.124 million passengers and 2.554 million Twenty-Foot Equivalent Units (TEUs), equivalent to 29.74 million tons of goods, across its 472-kilometer span.

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China’s commitment to addressing Africa’s infrastructure needs underscores its role as a key development partner, deepening its engagement with African nations.

The implementation of Chinese-backed projects has fostered mutual benefits, contributing to a shared future within the Sino-African framework.

China has demonstrated its commitment to Kenya’s transport sector, positioning itself as a reliable development partner.

Since Beijing is willing and ready to finance Kenya’s multibillion-dollar infrastructure projects, Kenya should continue its cooperation with the world’s second-largest economy to join the league of countries with electric trains powered by clean energy, which will also help reduce its carbon emissions.

As a country, we cannot effectively address global warming if we continue using diesel-powered trains. Achieving the Paris Agreement’s goal of reducing transport-related emissions from the current 7.7 gigatons of carbon dioxide by 2050 will require transitioning to cleaner energy sources.

The strong partnership between Kenya and China will ensure the ultimate success of the SGR under the Forum on China-Africa Cooperation (Focac), while also reducing Kenya’s carbon footprint.

A recent joint report by the International Union of Railways and the Community of European Railway and Infrastructure Companies stated that traveling by rail is, on average, three to ten times less carbon dioxide intensive than road or air transport.

Once Uganda completes its railway in 48 months and Kenya extends its line to Malaba, this will promote economic growth by creating seamless connectivity within Kenya, Uganda, and neighboring countries.

This will stimulate trade, investment, and industrial development while facilitating regional integration as part of broader regional efforts to promote closer economic ties and collaboration with regional partners.

The writer is a Journalist and a Communication Consultant