East African Governments Ramp Up Rail Investment in 2026/27 Budgets
East African governments are significantly increasing investment in railway infrastructure in their 2026/27 national budgets, with Kenya, Uganda and Tanzania allocating billions of shillings to expand rail networks, modernise transport systems and improve regional trade connectivity.
In Kenya, Cabinet Secretary for the National Treasury, John Mbadi Ng’ongo, announced a proposed allocation of KSh38.4 billion for railway projects as part of the government’s transport infrastructure programme.
The allocation forms part of a broader effort to improve public transport and logistics infrastructure.
To improve urban mobility, the government has also proposed KSh582 million for the Nairobi Bus Rapid Transit (BRT) Project, aimed at reducing traffic congestion in the capital.
Meanwhile, Uganda has continued prioritising railway development through substantial infrastructure spending.
Finance, Planning and Economic Development Minister Henry Musasizi announced the commencement of the construction of the 273-kilometre Standard Gauge Railway (SGR) linking Malaba and Kampala.
Once completed, the railway is expected to reduce the cost of transporting containers from Mombasa to Kampala from approximately US$3,500 to US$1,600, while cutting transit times from five days to one day.
Musasizi revealed that the rehabilitation of the Tororo–Gulu Metre Gauge Railway has reached 66% completion, while works on the Kampala–Mukono section have been completed.
Uganda has allocated Shs8.79 trillion for transport infrastructure development in the next financial year, with priority given to the construction of the Malaba–Kampala Standard Gauge Railway and completion of the metre gauge railway rehabilitation programme.
In Tanzania, the government has allocated 1.27 trillion Tanzanian shillings for the construction and rehabilitation of railway infrastructure, including 1.12 trillion shillings dedicated to the Standard Gauge Railway programme.
The government said construction of the Dar es Salaam–Dodoma SGR sections, covering Lots 1 and 2, has been completed and is now operational.
According to Finance Minister Ambassador Khamis Mussa Omar, the government views the Standard Gauge Railway as a key component of its broader economic transformation strategy.
The railway, together with Msalato International Airport, will support the development of Dodoma into a modern administrative capital, a regional transport and logistics hub and a centre for sustainable urban development.
Tanzania also plans to continue implementing the TAZARA Railway Revitalisation Project and advance construction of the Standard Gauge Railway from Dodoma to Mwanza and Isaka to Kigoma.
According to the government, these projects are expected to stimulate economic activity across multiple regions by improving transport efficiency, strengthening regional trade corridors and leveraging Tanzania’s strategic geographic position.
The East African Community has come up with the East African Railway Master Plan, a proposal for upgrading the railways serving Tanzania, Kenya, and Uganda, and building new railways to serve Rwanda and Burundi.