Kenya Railways could scale its international partnership net after the United Arab Emirates (UAE) emerged as Africa’s leading foreign investor, channelling an estimated USD 130 billion between 2019 and 2023.

With much of UAE’s activities revolving around transport and logistics, where Emirati companies such as DP World and AD Ports operate port terminals across the continent, Abu Dhabi is extending its reach into rail, from the Horn of Africa to the Gulf of Guinea.

Why Kenya is important in UAE’s expansion

Kenya has become a focal point for major Emirates engagements after Nairobi sought funding for the second phase of its Standard Gauge Railway (SGR), a 468-kilometre extension from Naivasha to Kisumu and Malaba.

With Beijing reluctant to advance new loans after financing the first Mombasa–Naivasha section, Kenya turned to Abu Dhabi. Etihad Rail has since signed a memorandum of understanding with Kenya Railways to conduct feasibility studies for a new national rail network and potential involvement in the SGR. Discussions include a possible USD 4 billion concession to expand freight operations, enabling Kenya to strengthen trade links with Uganda, Rwanda and South Sudan.

The UAE’s growing engagement in railway projects underlines its ambition to consolidate a presence that complements its established role in ports and aviation. For African partners, the arrival of Emirati capital and expertise offers a means of modernising outdated networks, most of which were built during the colonial period. It also diversifies financing sources beyond China, which has dominated railway construction on the continent for a generation.

Furthermore, Emirati railway engagement will support poverty alleviation efforts, as they will lead to employment opportunities, the emergence of development corridors, increase mobility as well as cross-border trade, at a time when the African Union and regional economic communities are undertaking initiatives to increase intra-regional trade.

Philip Mainga’s Impact

Kenya Railways Managing Director Philip Mainga has been hailed for the continued collaborative approach that has steered the transport agency into a visionary global outfit.

With major investments lined-up for the 468-kilometre extension from Naivasha to Kisumu and Malaba and the Railway City Project,Mainga’s tenure has proved to be a significant and cognitive reign that has undoubtedly changed the transport terrain in Kenya.