Uganda To Invest $205 Million In Old Railway

The Government of Uganda plans to invest $205 million to restore an old rail link between Kampala and Malaba, located near the Kenyan border.

According to the chief financial officers of Uganda Railways Corporation the investment will lead to increased capacity of 120,000 by 2026. Current capacity on the line is 20,000. 

The investment comes as Uganda experiences delays to funding for the standard gauge railway project that will connect to Mombasa in Kenya. During the first year of operations the rail has recorded sales of $57 million against operating costs of $120 million, raising concern over how Kenya will manage to repay loans for the project, which are due from this year.