Kenya is betting big on rail to power its next phase of economic growth, courting the UAE’s Etihad Rail in a proposed $4 billion partnership aimed at transforming the country into a regional trade hub. The deal, if secured, would extend Kenya’s strategic railway network, strengthen links between ports and inland markets, and open faster routes to neighboring East African economies, a move that could redefine the flow of goods across the region.

Reportedly, the country is seeking an additional $4 billion in funding to advance the next phase of its flagship Standard Gauge Railway (SGR) project, as it aims to strengthen regional trade and logistics infrastructure. The expansion comes as part of the country’s broader efforts to connect key economic corridors from the port city of Mombasa to inland neighbors such as Uganda, Rwanda, and South Sudan.

According to a report by Bloomberg, Transport Secretary Davis Chirchir said the government is exploring securitization options to raise the required funds. This model would allow Kenya to leverage existing infrastructure revenues to attract new investment.

In a bid to enhance operational efficiency and reduce reliance on public funds, the government is also in discussions with the UAE’s Etihad Rail. The talks involve a potential concession under which the UAE’s national railway company would invest in rolling stock—trains and wagons—and take charge of freight operations.

“Etihad Rail is looking at handling 17 million metric tonnes of cargo to break even or make a profit,” Chirchir noted, underlining the scale required to ensure commercial viability.

If successful, the deal could mark a significant milestone in cross-continental infrastructure collaboration between Africa and the Gulf.