• Uganda aims to expand rail length from 258 km in 2025 to 768 km by 2029 through major investments

• The five-year plan includes new locomotives, wagons, and infrastructure upgrades under NDPIV

• Passenger traffic is expected to grow from 856,902 to over 2.1 million by 2029–2030

The Uganda Railways Corporation (URC) has unveiled a five-year investment plan running through 2030 to expand the country's rail network and enhance its transportation capacity. The initiative is part of National Development Plan IV (NDPIV) and seeks to modernize Uganda’s railway infrastructure, rolling stock, and service offerings.

Key components of the plan include the acquisition of four new locomotives and three wagons during the 2026–2027 fiscal year. The URC also plans to purchase 100 new wagons, with an option for an additional 24 units, by the end of fiscal year 2027–2028. Beyond rolling stock, the investment focuses on upgrading and extending the existing metric gauge railway, with the total length projected to increase from 258 kilometers in 2025 to 768 kilometers by 2028–2029.

Through these efforts, Uganda aims to triple its rail passenger volume. The number of passengers transported is expected to rise from 856,902 currently to 1,835,065 by 2026–2027, reaching 1,953,075 in 2027–2028, and 2,189,596 by the end of the 2029–2030 period.

This domestic expansion will complement the ongoing standard gauge railway (SGR) project, which will connect Uganda to Kenya’s Mombasa port, the entry point for 80% of Uganda’s trade. Progress on this front was reinforced last week when Uganda finalized an $800 million loan agreement with the Islamic Development Bank to commence construction of the Malaba–Kampala section. This stretch of the SGR has been in limbo for more than a decade.

The Ugandan government views the rail strategy as a solution to relieve pressure on road infrastructure, reduce the cost of logistics for imports and exports, and address constraints associated with the country’s landlocked geography.

In contrast, Kenya’s portion of the transnational corridor faces delays. While discussions continue with China for the financing of the $4.5 billion segment, Nairobi is struggling to secure its required 30% counterpart funding, primarily due to budgetary constraints.