The governments of Kenya and Uganda have signed a contract to finalise joint resource mobilisation in the next four months to secure funds for the extension of Standard Gauge Railway (SGR).

Funding will be sought for a railway line from Naivasha to Malaba to Kampala and from Kampala to Kasese-Mpondwe with a branch line from Bihanga to Mirama Hills, Business Daily newspaper reported.

Uganda Transport Minister Katumba Wamala and his Kenyan counterpart Kipchumba Murkomen signed the agreement for a joint search for funds, which may include loans or public-private partnerships.

In addition, the two governments signed a deal to increase rail usage to haul Uganda cargo using SGR in the coming months.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)