Kenya and Uganda agree on how to develop the steel industry in Busia City

Uganda and Kenya have formalized eight new agreements aimed at enhancing their partnership across various key sectors, including transportation, commerce, immigration, and cultural cooperation.

These agreements reflect a comprehensive strategy to deepen bilateral ties and advance shared development goals. Uganda’s Ministry of East African Community Affairs stated that the MoUs will strengthen institutional cooperation and promote inclusive growth throughout the region.

The signing followed high-level discussions between President Yoweri Museveni of Uganda and Kenyan President William Ruto at State House in Nairobi. During the meeting, President Ruto announced that construction of the region’s largest steel manufacturing facility will begin in Uganda later this year. The project will be led by Kenyan investors, while Uganda will supply the necessary raw materials.

“Our two nations are bound by a rich history, shared principles, and a common vision for regional peace and prosperity,” Ruto said. “The signing of these eight MoUs marks a significant step forward in enhancing our economic collaboration, fostering closer connections among our people, and ensuring that our cooperation produces real benefits for both countries.”

One of the joint initiatives includes transforming the border town of Busia—shared by both nations—into a modern, streamlined trade hub. Construction on the project is expected to begin this year and continue over a three-year period.

The leaders also reviewed plans to expand regional infrastructure, including extending the Standard Gauge Railway from Naivasha to Malaba and onward into Uganda, as well as widening the Nairobi-Nakuru-Mau Summit highway, with future extension to the Ugandan border. These upgrades are designed to improve transportation efficiency and regional connectivity.

Another major topic of discussion was addressing longstanding border-related challenges, particularly the situation surrounding Migingo Island. Both presidents agreed to pursue diplomatic solutions to such disputes.

President Museveni emphasized that the key to Africa’s economic transformation lies in ramping up production and expanding markets. He criticized barriers that hinder cross-border trade and stressed the importance of regional integration.

He also pointed out the need for unrestricted access to international waters, drawing comparisons with Southeast Asian nations, where landlocked countries have been granted such access to support rapid economic development. Museveni suggested that Africa should adopt a similar model to overcome the logistical challenges faced by landlocked states.