Kenya-Uganda railway given significant investment boost

03/08/2011 - Kenya property & investment news Posted by Bob Brunskill
Kenya-Uganda railway given significant investment boost

Six international financiers have given the operator of the Kenya-Uganda railway a $164 million long-term loan financing, Reuters has reported.It is hoped that the loan may help to tackle high transport costs and delays in the region.One of the largest investments in east Africa rail, the money is aimed at refurbishing the track, buying new wagons and locomotives, in addition to replacing information technology systems.The rail network between Kenya and Uganda is seen as critical to expanding trade across the east African region.Furthermore, it is speculated that rehabilitation of the network could reduce transport costs by as much as a third.In a statement, the International Finance Corporation (IFC), one of the six financiers, explained: "An efficient rail network has the capacity to reduce east African transport costs by as much as a third due to the operational and fuel efficiency of rail shipment."