Museveni at the launch of the construction of the SGR in 2025
By Johannah Nantongo
Powerful First Son and Chief of Defence Forces, Gen Muhoozi Kainerugaba, has finally backed Turkish contractor Yapi Merkezi to build the Malaba–Kampala Standard Gauge Railway.
This comes months after the controversial four star general said Yapi Merkezi’s contract had been cancelled.
Gen Muhoozi said he was acting under President Yoweri Museveni’s instructions and directed government departments to accelerate implementation of the project, which is intended to strengthen Uganda’s trade links with Kenya and the port of Mombasa.
“Under the direction and instructions of Mzee Museveni, I approve the Turkish company Yapi Merkezi to implement the 1st Phase of the SGR. From Malaba to Kampala,” he posted on X handle .
“All departments of government are instructed to quickly implement this directive.”
Yapi Merkezi signed the approximately €2.7 billion construction agreement with Uganda in October 2024.
The government valued the project at about UShs10.8 trillion at the time, and Museveni launched it the following month.
Kainerugaba’s endorsement follows remarks on June 16, 2026, when he said the government had cancelled the Turkish firm’s contract and would seek another contractor.
“We have cancelled the contract with the Turkish company to build the SGR,” he wrote at the time.
Neither Uganda’s Works Ministry nor the company immediately confirmed a formal termination following that announcement.
His latest statement did not announce a new contract, revised terms or a construction timetable.
The Malaba–Kampala section forms the first phase of Uganda’s planned wider Standard Gauge Railway network.
Its connection through Kenya would give landlocked Uganda an additional freight route to Mombasa, a principal gateway for East African imports and exports.
The project’s regional benefits depend on completion of the adjoining railway sections in Kenya and compatibility between the two countries’ networks.
The directive follows an update to Uganda’s Parliament by State Minister for Works and Transport Fred Byamukama, who said technical proposals had been submitted for signalling, train control and communications systems.
These include the European Rail Traffic Management System and its European Train Control System Level 2 component, which support the management and protection of train movements.
The submissions also cover centralised traffic control, fibre optic communications, passenger information, ticketing and freight management.
Byamukama did not confirm whether the proposed systems had been approved or installed.
The railway is being developed under an engineering, procurement and construction arrangement, requiring the contractor to design and deliver an operational line.
For Uganda and its regional trading partners, the project is intended to expand freight capacity and provide an alternative to road transport along the Northern Corridor.