Kenya and Uganda Forge Ahead with Landmark Deals: New Rail, Steel, and Tourism Initiatives

In a significant stride toward deeper regional integration, Kenya and Uganda have signed eight new agreements, marking a pivotal moment for East Africa’s economic landscape. The accords, formalized during President Yoweri Museveni’s official visit to Nairobi on 30 July 2025, build upon 17 existing frameworks and are designed to catalyze growth across multiple sectors. This development signals a renewed commitment to fostering robust bilateral ties and unlocking fresh opportunities for businesses and communities on both sides of the border.

At the heart of these agreements are strategic sectors that hold immense promise for the region’s future. The memoranda of understanding (MoUs) span tourism, the Greater Busia Metro development, mining, fisheries, agriculture, livestock, transport, standards and quality assurance, and investment promotion. Each area has been carefully selected to address both immediate and long-term needs, reflecting the evolving priorities of East Africa’s dynamic economies.

One of the most transformative elements is the focus on transport and logistics. Kenya has outlined ambitious plans to extend the Standard Gauge Railway (SGR) from Naivasha to Malaba, with a further connection into Uganda. This move is expected to revolutionize the movement of people and goods, reducing transit times and costs while enhancing the region’s competitiveness. Complementing this is the dualling of the Nairobi–Nakuru–Mau Summit road, which will also reach Malaba, further strengthening the corridor that links the two nations. These infrastructure upgrades are poised to become the backbone of East Africa’s trade, offering new efficiencies for exporters and importers alike.

In the realm of standards and quality assurance, the collaboration between the Kenya Bureau of Standards and the Uganda National Bureau of Standards is set to streamline cross-border trade. By harmonizing regulations and intensifying efforts to eliminate illicit or sub-standard goods, the two countries aim to create a safer and more predictable trading environment. This is particularly relevant for African producers and manufacturers seeking to expand their reach within the continent and beyond.

The agriculture and livestock MoU is another cornerstone, targeting enhanced cooperation in veterinary services and crop health. This partnership is expected to boost food security, improve animal health, and facilitate the exchange of best practices. Meanwhile, the fisheries agreement is designed to unlock the potential of the blue economy, with a focus on sustainable resource management and value addition. These initiatives are especially pertinent for communities that rely on agriculture and fishing as primary sources of livelihood, offering new avenues for growth and resilience.

Urban development is also in the spotlight, with the Greater Busia Metro Project set to drive joint infrastructure and development programmes across both sides of the border. This cross-border initiative will not only enhance connectivity but also foster economic integration and social cohesion. The project is expected to improve the efficiency of the One Stop Border Post at Busia, making it easier for people and goods to move seamlessly between Kenya and Uganda.

Mining, a sector with untapped potential, will benefit from a new framework for responsible mineral exploitation. The two countries have agreed to collaborate on institutional capacity building and to tackle the persistent challenge of cross-border smuggling. By promoting transparency and sustainable practices, Kenya and Uganda are positioning themselves to attract investment and maximize the benefits of their mineral resources .

Tourism, a vital engine for economic growth, is set for a boost through joint marketing, cultural exchange, and eco-tourism initiatives. The new agreement aims to showcase the region’s diverse attractions, from wildlife and natural wonders to rich cultural heritage. By pooling resources and expertise, Kenya and Uganda hope to attract more visitors, extend their stay, and increase tourism revenues. This collaborative approach is expected to enhance the global profile of East Africa as a premier destination, while also supporting local communities and conservation efforts.

During their discussions, the leaders addressed pressing cross-border challenges, including the longstanding Migingo fishing issue. They also reviewed ongoing negotiations on a Cross-Border Resource Sharing Agreement, underscoring their commitment to equitable and sustainable management of shared resources. Trade concerns, particularly non-tariff barriers affecting farmers and small traders, were brought to the fore. The upcoming Joint Ministerial Commission Mid-Term Review and Joint Trade Committee meeting in October 2025 are expected to provide a platform for resolving these issues and advancing the interests of grassroots entrepreneurs .

Both countries reaffirmed their dedication to strengthening regional institutions and advancing the objectives of the East African Community (EAC). This includes deepening integration through the Customs Union, Common Market, Monetary Union, and Political Federation. Such commitments are crucial for building a more unified and prosperous East Africa, where goods, services, and people can move freely and efficiently .

Perhaps the most ambitious announcement was the plan to establish the region’s largest steel factory. This major industrial initiative is designed to reduce reliance on imports, boost exports, and create jobs. By leveraging local resources and expertise, Kenya and Uganda aim to position themselves as leaders in Africa’s steel industry, supporting infrastructure development and industrialization across the continent .

For Africa’s travel sector, these developments offer a wealth of new opportunities. Enhanced infrastructure, streamlined trade, and joint tourism initiatives are set to reshape the business environment, making it easier for companies to expand, innovate, and serve a growing market. As regional integration deepens, the travel industry will play a pivotal role in connecting people, cultures, and economies, driving sustainable growth and prosperity for years to come.