Uganda, Kenya to jointly develop Busia City, steel industry

Nairobi, Kenya | IND | Uganda and Kenya have signed eight Memorandum of Understanding (MoUs) aimed at improving the cooperation between the two countries.

The MoUs span multiple sectors, including transport, trade, cultural exchange, and immigration, reflecting a holistic approach to bilateral engagement.

These agreements not only reinforce the institutional frameworks underpinning Kenya-Uganda relations but also catalyses inclusive development across the region, according to Uganda’s Ministry of East African Community Affairs.

The event followed bilateral talks between Presidents Yoweri Museveni and host William Ruto at State House, Nairobi, at which the Kenyan president revealed that later this year, the construction of the largest steel project in the region will start in Uganda.

According to him, Kenyan investors will develop the facility while Uganda provides the raw materials.

“Kenya and Uganda share a historical partnership anchored in common ideals, deep respect, and a shared ambition for regional stability and progress. The signing of eight new Memoranda of Understanding not only strengthens our cooperation, but also catalyses economic development, deepens people-to-people ties, and ensures our relations deliver tangible benefits for our citizens,” said Ruto.

Ruto noted that the two countries are committed to jointly developing the metropolitan city of Busia, which is shared by both countries, into a modern one-stop city, to promote trade. The project commences this year for the next three years, according to him.

They also discussed the extension of the Standard Gauge Railway from Naivasha to Malaba and into Uganda and the dualling of the Nairobi-Nakuru-Mau Summit road and its eventual extension to Malaba and Uganda, as well as addressing cross-border challenges, including the issues around Migingo Island.

This is also aimed at enhancing transport and logistical infrastructure generally, he says.

Both leaders further committed to addressing persistent cross-border challenges, notably the Migingo Island fishing issue, signalling a constructive and diplomatic approach to resolving long-standing concerns.

The eight MOUs signed span multiple sectors—including transport, trade, cultural exchange, and immigration—reflecting a holistic approach to bilateral engagement.

These agreements not only reinforce the institutional frameworks underpinning Kenya-Uganda relations but also catalyse inclusive development across the region.

President Museveni’s focus was mainly on increasing production and the creation of markets as the only means to development, condemning the cross-border restrictions.

He said that the key to Africa’s prosperity lay in increasing the production of goods and services, but that there was also a need to consider the market for these products.

Museveni said there must be easy and free access to the sea if the region is to grow. Giving the example of landlocked countries in South East Asia, which have all been given access to the sea, hence boosting the fast development of the region, Museveni said that the same should be the focus of Africa, where landlocked countries struggle to reach the international markets.

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