Uganda has secured tentative approval for $650 million from the African Development Bank to fund a railway connecting Kampala to Malaba at the Kenyan border. The tentative allocation represents a significant step forward for the infrastructure project aimed at improving regional transport links.

The railway project will create a critical land bridge between Uganda and its largest trading partner, Kenya. By partially funding this construction, the AfDB is supporting East African integration while providing Uganda with enhanced access to Indian Ocean ports through Kenyan corridors. The funding will help finance the roughly 400-kilometer rail link that has been prioritized for economic development.

This investment signals growing confidence in Uganda's infrastructure modernization despite ongoing fiscal pressures. The partial funding structure allows multiple donors to participate while reducing individual country risk exposure. For investors, the project demonstrates continued appetite for East African transport infrastructure even as global financing conditions tighten.