Chief of Defence Forces (CDF) Gen. Muhoozi Kainerugaba has announced the cancellation of the multi-billion-dollar contract awarded to Turkish construction giant Yapı Merkezi for the construction of Uganda’s Standard Gauge Railway (SGR).
The announcement, made on Tuesday through Gen. Muhoozi’s official communication Twitter (X) handle, comes amid escalating tensions between the CDF and Turkish interests in Uganda. Muhoozi said the government had decided to terminate the contract with the Turkish company and would instead seek a contractor capable of delivering a project befitting Uganda’s ambitions.
“We have cancelled the contract with the Turkish company to build the SGR. We will get another one that is more worthy of our country!” Gen. Muhoozi said.
In a related directive, the CDF instructed all security agencies not to interfere with Ugandans intending to stage a demonstration at the Turkish Embassy in Kampala on June 19.
“All Security Services are instructed to leave our supporters/ordinary Ugandans to demonstrate at the Turkish Embassy on Friday, June 19, 2026!” he added.
The cancelled contract had been awarded to Yapı Merkezi, one of Türkiye’s largest engineering and construction firms, which was contracted to construct the 272-kilometre eastern section of the Standard Gauge Railway from Malaba to Kampala. The project, valued at approximately €2.7 billion, was expected to serve as the backbone of Uganda’s modern rail transport network and a key link to the East African regional railway system.
Founded in 1965, Yapı Merkezi has built a reputation as a major international infrastructure developer, delivering railway, metro, highway and urban transport projects across Europe, Asia, the Middle East and Africa. The company has previously executed major railway projects in countries including Tanzania, Ethiopia and Senegal, and was viewed by Ugandan authorities as a strategic partner in delivering the long-awaited SGR project.
The Ugandan government signed the Engineering, Procurement and Construction (EPC) contract with the Turkish firm in late 2024 after years of delays that had stalled the railway programme. Construction was expected to begin following the completion of financing arrangements and land acquisition along the railway corridor.
The Standard Gauge Railway is considered one of Uganda’s most important infrastructure investments, designed to reduce cargo transport costs, shorten transit times and improve connectivity between Uganda and the Kenyan port of Mombasa. Government projections have long indicated that the railway would boost trade competitiveness, attract investment and support industrial development across the country.
Ironically, Gen. Muhoozi had previously hosted executives from Yapı Merkezi and expressed optimism about the project. During a high-level meeting at the Special Forces Command headquarters in Entebbe, company officials briefed him on the railway’s progress, implementation strategy and technical specifications, while pledging to deliver the project within the agreed timelines.
The latest announcement, however, suggests a complete breakdown in confidence between the parties and raises fresh uncertainty over the future of the railway project. Neither the Ministry of Works and Transport nor officials from the Turkish Embassy had issued an immediate response to the CDF’s remarks by press time.
The development is expected to attract widespread attention given the strategic importance of the SGR project, which has been a central pillar of Uganda’s long-term economic transformation agenda. Questions are now likely to emerge regarding the legal implications of terminating the contract, the status of ongoing preparatory works and the identity of any potential replacement contractor.
For now, Gen. Muhoozi insists Uganda will move forward with a new partner.
“We will get another one that is more worthy of our country,” he said.
The announcement shows one of the most significant developments surrounding Uganda’s railway ambitions since the project was revived and could have far-reaching implications for both Uganda-Türkiye relations and the future of the country’s largest transport infrastructure investment.
Uganda’s Standard Gauge Railway (SGR) is a $3 billion, 273-kilometer rail network currently in its implementation phase. The railway is meant to connect Malaba (at the Kenya border) to Kampala. Designed for speeds up to 120 km/h for freight and 160 km/h for passengers, it aims to reduce transit times and cut cargo costs from Mombasa by half.
