Kenya is turning to the United Arab Emirates (UAE) for financial support to revive its stalled railway expansion project, following years of reduced infrastructure lending from China. President William Ruto led a high-level delegation to Abu Dhabi on January 14, where he held discussions with senior Emirati officials on securing new investment for the next phases of the Standard Gauge Railway (SGR). The move signals Nairobi’s effort to diversify its sources of infrastructure financing as it seeks to extend the modern railway from Naivasha to Malaba and strengthen regional trade links.
The shift comes after China, which funded the first two SGR phases between Mombasa and Naivasha, significantly scaled back its overseas lending. With Beijing increasingly cautious about large infrastructure loans abroad, Nairobi has been forced to explore new partners to sustain its flagship transport projects. The UAE, positioning itself as a rising global investor and logistics hub, has shown growing interest in East African infrastructure development. Kenyan officials say the partnership could bring both financing and operational expertise, as the Gulf state continues expanding its influence in Africa’s transport, ports, and logistics sectors.
Looking ahead, Kenya hopes that an expanded SGR network will lower cargo transport costs, boost regional connectivity, and accelerate economic growth along the Northern Corridor. Securing UAE support could not only unlock the railway’s next phase but also attract additional investors seeking stability and long-term returns. Analysts note that Nairobi’s outreach reflects its broader strategy of balancing geopolitical ties while reducing overreliance on traditional lenders. As negotiations continue, the outcome will determine whether Kenya can reboot one of its most ambitious infrastructure dreams and strengthen its role as a regional trade gateway.