Chief of Defence Forces Gen. Muhoozi Kainerugaba has announced that Uganda has cancelled its contract with Turkish construction giant Yapı Merkezi to build the country’s long-awaited Standard Gauge Railway (SGR), marking a dramatic twist in a project that has been at the center of Uganda’s infrastructure ambitions for years.
In a brief but explosive post on X, Gen Muhoozi declared: “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!”
The statement, made without any accompanying government announcement from the Ministry of Works or State House, immediately raised questions about the future of the multi-billion-dollar railway project and whether the cancellation has formally been effected by the government.
The Turkish company, Yapı Merkezi, signed a contract with Uganda in October 2024 to construct the first phase of the Standard Gauge Railway linking Kampala to Malaba at the Kenyan border.
The approximately $3 billion project was hailed as a landmark infrastructure investment expected to connect Uganda to Kenya’s railway network and the Port of Mombasa, reducing transport costs and boosting regional trade.
President Yoweri Museveni officially flagged off the project in November 2024, describing it as a critical step toward modernizing Uganda’s transport sector and enhancing regional competitiveness.
Ironically, Gen Muhoozi himself was among the strongest backers of the project only months ago.
In December 2025, the First Son hosted a delegation from Yapı Merkezi and held discussions on the progress of the railway project.
During the meeting, he emphasized the importance of timely implementation and successful delivery of the SGR, which was expected to begin full-scale construction in 2026.
From Allies to Adversaries
The latest declaration appears to be the culmination of a rapidly deteriorating relationship between Gen Muhoozi and Turkish officials that has played out publicly over the past several months.
The tensions escalated in April when Muhoozi launched a series of controversial social media attacks directed at Turkey.
The comments attracted international attention and prompted discussions about their implications for Uganda-Turkey relations.
As the diplomatic spat intensified, Gen Muhoozi openly called for Uganda to terminate the SGR agreement with Yapı Merkezi, arguing that the country should seek an alternative contractor.
Reports at the time indicated that his position was creating fresh tensions within ongoing diplomatic engagements between Uganda and Turkey.
A report published in April noted that Gen Muhoozi’s campaign against the Turkish contractor had added pressure on government officials attempting to maintain cordial relations with Ankara while preserving the strategic railway project.
Strategic Project Faces Uncertainty
The SGR has long been viewed as one of Uganda’s most important infrastructure projects.
The railway is intended to provide a modern freight and passenger transport corridor connecting Uganda to the Kenyan SGR system and ultimately the Indian Ocean.
Government officials have repeatedly argued that the railway will lower the cost of imports and exports while improving regional trade efficiency.
The Turkish firm was brought on board after Uganda abandoned earlier arrangements with a Chinese contractor over financing challenges. The switch to Yapı Merkezi was presented as a breakthrough after years of delays that had stalled the project.
The contract signed in 2024 was one of the largest overseas deals secured by the Turkish construction company and was celebrated by both Kampala and Ankara as evidence of growing economic cooperation between the two countries.
Questions Over Authority
Gen Muhoozi’s announcement is likely to trigger fresh debate about who has the authority to make major government procurement decisions.
While the CDF wields significant influence within government circles and serves as Senior Presidential Advisor for Special Operations, formal cancellation of a contract of this magnitude would ordinarily require action by the responsible ministries and agencies.
As of Tuesday afternoon, neither the Ministry of Works and Transport nor the Office of the President had issued a statement confirming the cancellation.
The absence of an official government communication has left observers waiting to see whether Gen Muhoozi’s declaration reflects a finalized government decision or a political position that is yet to be formally implemented.
If confirmed, the move would represent one of the most consequential reversals in Uganda’s infrastructure planning in recent years and could have significant implications for relations between Kampala and Ankara.
For now, Uganda’s flagship railway project appears to have entered another period of uncertainty, with billions of dollars, regional trade ambitions and diplomatic ties hanging in the balance.
