07.11.2026 08:20
Uganda’s Chief of Defence Forces Muhoozi Kainerugaba changed his decision regarding the Turkish construction company Yapı Merkezi, whose contract he announced in June had been cancelled. In the statement following the diplomatic tension with Turkey, approval was given for the first phase of the 2.7 billion euro railway project to be carried out by Yapı Merkezi again. Kainerugaba also instructed the relevant institutions to accelerate the work.
In Uganda, two contradictory statements were made about five months apart regarding the multibillion-euro railway project undertaken by the Turkish company Yapı Merkezi. Uganda's Chief of Defence Forces Muhoozi Kainerugaba, who announced in June that the agreement with the company had been cancelled, this time announced that he accepted the project being continued by the Turkish company.
HE CHANGED HIS DECISION 5 MONTHS LATER
Kainerugaba, son of Uganda's President Yoweri Museveni, stated in his November 6 statement that, in line with his father's instructions, he had approved the implementation of the first phase of the Malaba-Kampala Standard Gauge Railway (SGR) project by Yapı Merkezi. Kainerugaba asked the relevant public institutions to accelerate the project work.
The new statement was seen as Kainerugaba backing down from his previous stance, after he drew attention in June with his harsh criticism of the Turkish company.
HE HAD ANNOUNCED THE CANCELLATION OF THE TURKISH COMPANY'S CONTRACT
In a statement on June 16, 2026, Kainerugaba announced that they had cancelled the railway contract signed with Yapı Merkezi and said they would look for another company to complete the project. The general had also called for a protest to be held in front of Turkey's Embassy in Kampala.
However, at that time no definitive confirmation had come from Uganda's relevant public institutions that the contract had been legally terminated. Therefore, after the June statement, uncertainty about the project's future continued.
THERE HAD BEEN DIPLOMATIC TENSION WITH TURKEY
At the center of the tension between the two countries was the Ugandan government's request for the extradition of opposition figure Fred Lumbuye, who was said to be in Turkey. Kainerugaba's statements that he had asked Turkey for $1 billion had also increased the debate.
After the developments, while the Turkish company's future in the railway project was dragged into uncertainty, with the new statement made on November 6, it was reported that Yapı Merkezi's role in the project would continue.
THE PROJECT WORTH 2.7 BILLION EUROS
A railway contract worth approximately 2.7 billion euros was signed between Yapı Merkezi and the Ugandan government in October 2024. The line connecting the capital Kampala with the city of Malaba on the Kenyan border is planned to be approximately 272 kilometers long.
The project, whose foundation was laid in November 2024, was targeted for completion within 48 months. However, due to financing problems, the work fell behind the planned schedule. In June 2026, the Islamic Development Bank's approval of 650.75 million euros in financing for the project was an important development for the project's progress.
IT IS OF CRITICAL IMPORTANCE FOR EAST AFRICAN TRADE
With the completion of the railway line, Uganda aims to establish a railway connection to the Port of Mombasa on the Indian Ocean coast via Kenya. The project is expected to facilitate freight transport between the two countries, reduce logistics costs, and strengthen trade connections in East Africa.