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Kenya, Uganda Agree on Rail Extension and Steel Plant in New Deals

Kenya, Uganda Agree on Rail Extension and Steel Plant in New Deals
Thursday, 31 July 2025 14:55

• Kenya and Uganda signed 8 new deals to boost ties in trade, infrastructure, and resource management.
• Focus areas include SGR extension, steel plant project, and easing trade barriers.
• Leaders aim to strengthen EAC integration and regional industrialization.

Kenya and Uganda signed eight new agreements on Wednesday, July 30, 2025, in Nairobi, aiming to strengthen bilateral cooperation during Ugandan President Yoweri Museveni's official visit.

These memorandums of understanding join 17 existing agreements, covering strategic sectors like agriculture, fisheries, livestock, tourism, mining, transport, standards and quality assurance, urban development, and investment promotion. The details came from a statement by the Kenyan presidency.

Kenyan President William Ruto emphasized that these agreements seek to enhance economic and human ties between the two nations by fostering shared development. "We are united in our commitment to deepening bilateral cooperation and delivering shared prosperity, while working together towards a stronger and integrated region," he stated.

Among the priorities discussed was the joint management of cross-border resources, particularly the dispute over the Migingo fishing zone on Lake Victoria. Both heads of state expressed their intent to finalize an agreement on resource sharing.

On infrastructure, focus areas include extending the Standard Gauge Railway (SGR) to Malaba, on the Ugandan border, and expanding the Nairobi-Nakuru-Mau Summit road. The Greater Busia project aims to establish a cross-border metropolitan area with shared infrastructure. Efforts will also strengthen institutional capacity in the mining sector and combat smuggling.

Regarding trade, Ruto pointed to persistent non-tariff barriers hindering the free movement of goods and undermining the East African Community’s (EAC) economic integration goals. He called for a "practical and swift" resolution to these issues before the Joint Ministerial Commission and Joint Trade Committee meetings in October 2025.

President Museveni, meanwhile, stressed the importance of consolidating African markets and increasing local production capacity, drawing inspiration from the American model based on a large domestic market.

During the meeting, the two presidents also agreed to launch a joint industrial project for the region's largest steel plant. This aims to reduce dependence on metal imports and boost production for export.

As major economic partners within the EAC, trade between Kenya and Uganda reached $1.2 billion in 2024, according to International Trade Centre data.

Charlène N’dimon

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