Muhoozi restores Turkish firm SGR deal on Museveni's orders

Uganda's Chief of Defence Forces (CDF), Gen Muhoozi Kainerugaba, has made a dramatic U-turn on the country's Shs 10.8 trillion Standard Gauge Railway (SGR) project, approving Turkish construction company Yapi Merkezi just months after announcing the cancellation of its contract.

In a statement posted on X on Friday, November 6, Gen Kainerugaba said President Yoweri Museveni had instructed him to approve the company to construct the first phase of the railway, which will run from Malaba on the Kenyan border to Kampala.

"Under the direction and instructions of Mzee Museveni, I approve the Turkish company Yapi Merkezi to implement the 1st Phase of the SGR. From Malaba to Kampala," Gen Kainerugaba stated.

"All departments of government are instructed to quickly implement this directive."

The announcement marks a sharp reversal from June 16, 2026, when Gen Kainerugaba declared that the government had cancelled Yapi Merkezi's contract and would seek another company to undertake the project.

At the time, he also instructed supporters of the Patriotic League of Uganda (PLU), a political organisation he chairs, to demonstrate outside the Turkish Embassy in Kampala.

"We have cancelled the contract with the Turkish company to build the SGR. We will get another one that is more worthy of our country!" he wrote.

He directed security agencies to allow the planned demonstration, which was scheduled for June 19, 2026.

His announcement raised questions about the future of the railway, although the Ministry of Works and Transport did not publicly confirm that the government had formally terminated the contract.

The dispute was particularly striking because Kainerugaba had hosted senior Yapi Merkezi officials at the Special Forces Command headquarters in Entebbe on December 17, 2025.

During that meeting, the Turkish delegation briefed him on construction plans, including a proposed tunnel through military land in Mbuya, Kampala.

Gen Kainerugaba had encouraged the company to deliver quality work and complete the project on schedule.

Uganda awarded Yapi Merkezi the contract on October 14, 2024, after years of delays under an earlier agreement with China Harbour Engineering Company.

The Chinese firm's contract ended in 2023 after the government failed to secure the required financing from China.

President Museveni launched the Malaba-Kampala railway project in Tororo on November 21, 2024, with construction expected to take four years.

The planned 272-kilometre electric railway will connect Kampala to Malaba through several districts, including Tororo, Iganga, Jinja, Mukono and Wakiso.

It forms part of a wider railway network intended to connect Uganda to Kenya's Standard Gauge Railway and the port of Mombasa.

The SGR uses wider tracks than Uganda's older metre-gauge railway. It is designed to carry heavier cargo and support faster train services, reducing dependence on road transport.

The government expects the project to lower the cost of transporting imports and exports while easing pressure on major highways.

Despite the project's importance, construction has faced repeated delays linked to financing, land acquisition and preparations for major works.

In June 2026, the Islamic Development Bank approved financing worth €650.75 million, about Shs2.72 trillion, to support construction of key sections of the railway.

The funding covers major infrastructure, including a bridge across the River Nile in Jinja, a tunnel between Mbuya and Kampala, railway stations and maintenance workshops.

In an October 12, 2026 update, the SGR project team reported that land acquisition had reached about 70 per cent.

Preparatory works at the Iganga construction camp were also nearing completion. These included facilities for producing railway sleepers, concrete and other construction materials.

However, the government was still seeking additional financing, while compensation for affected landowners remained incomplete.

The project team said an assessment mission by the OPEC Fund for International Development was expected in October to consider further financial support.

Gen Kainerugaba's latest intervention comes as the government seeks to move from preparatory activities to full construction.

The government has yet to announce a new date for the start of full construction following the latest directive.