Kampala, Uganda — President William Ruto has announced that construction of the Standard Gauge Railway (SGR) extension from Naivasha to Kampala -- and onwards to Rwanda and the border of the Democratic Republic of Congo -- will begin early next year.
Speaking in Osukuru, Tororo District, Uganda, on Sunday during the groundbreaking of the Devki Mega Steel Project alongside President Yoweri Museveni, President Ruto said the SGR extension will be a joint venture between Kenya and Uganda, with the formal launch set for January 2026.
"In January, we will be launching the extension of the SGR from Naivasha to Kampala to connect with the Malaba-Kampala line and later to the DRC," he said, noting that the project aims to strengthen regional trade and deepen East African Community integration.
Keep up with the latest headlines on WhatsApp | LinkedIn
President Ruto said the two countries will also jointly extend the petroleum pipeline to Rwanda and the DRC as part of efforts to boost regional connectivity and economic competitiveness.
As part of this shift, the Government of Kenya is divesting 65 per cent of its shareholding in the Kenya Pipeline Company through the Nairobi Securities Exchange, and the President encouraged public and private investors across the EAC to take up the shares.
He added that Kenya and Uganda recently ratified new cooperation frameworks during a joint ministerial meeting in Nairobi, including an agreement for joint ownership of pipeline infrastructure.
"I thank you, Mr President, for agreeing to work with us. The ministers were in Nairobi last week, and I have given guidance on the need for Uganda and Kenya -- both public and private -- to jointly own the Kenya Pipeline Company," he said.
President Ruto noted that regional projects such as the petroleum pipeline, the SGR, and the dualling of the Rironi-Nakuru-Eldoret-Malaba road are designed to enhance connectivity between the coast and the hinterland, opening new economic corridors.
Turning to the steel sector, President Ruto said the Devki Mega Steel Project represents cross-border collaboration that will advance industrialisation, strengthen regional self-sufficiency and create new value chains across East Africa.
"This project will provide jobs for our young people, build new value chains for small and medium enterprises, and create opportunities that extend far beyond Uganda's borders," he said.
He noted that the Tororo plant currently employs more than 400 workers, with plans to reach 20,000 employees by 2027 across Devki's operations in the region.
The facility is also expected to unlock new opportunities for EAC companies in transport, energy, construction and services through supply contracts and joint ventures.
President Ruto praised Devki Group Chairman Narendra Raval, describing him as a "distinguished Kenyan industrialist whose commitment and determination have been instrumental in bringing this industry to life".
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He added that Africa's steel market -- which stood at 39.5 million tonnes in 2024 -- is projected to reach 52 million tonnes by 2034, driven by major infrastructure projects and growing industrial capacity.
President Museveni welcomed the investment, saying it aligns with his long-standing push for value addition on the continent's raw materials.
"It is sad that the GDP of a country like the US is three times that of all African countries combined, yet we have rich resources that can uplift the continent if raw materials undergo value addition before export," he said.
Museveni also stressed that industrial projects must prioritise local employment, a policy Devki Group Chair Narendra Raval pledged to uphold.
Dr Raval said the Tororo project will create 15,000 direct jobs in Uganda, adding: "I want to assure the community here that 90 per cent of the jobs will be preserved for the people around here."
