The Government of Uganda has cancelled the deal with a Chinese contractor for the Kampala-Malaba Railway public-private partnership (PPP) project. 

Uganda canceled a US$2.3 billion contract with China Harbor Engineering and Construction Company after Beijing decided not to fund the scheme. The project was to include the construction of a 273-km railway between Kampala and the city of Malaba in Uganda on the border with Kenya. The project is part of a 1,700-km railway that runs to the Indian Ocean port of Mombasa. 

Kenya has built 730 km of track between the port city of Mombasa and Naivasha but has not determined how to extend this to Uganda. One option is an alternative route through its southern neighbor Tanzania, where Turkish contractor Yapi Merkezi is already building railways. Negotiations with the company are planned to be held in the near future.