In a move that has stirred debate in Uganda’s diplomatic and infrastructure corridors, the Chief of Defence Forces (CDF) and Chairman of the Patriotic League of Uganda (PLU), Gen Muhoozi Kainerugaba, has announced the unilateral cancellation of the €2.7 billion (approx. Ush10.8 trillion) Standard Gauge Railway (SGR) contract with Turkish construction firm, Yapi Merkezi.
Gen Muhoozi, who also serves as the Senior Presidential Advisor for Special Operations, went further to command Kasambya County MP David Kabanda to organise his political supporters to stage mass protests at the Turkish Embassy in Kampala this coming Friday, June 19, 2026.
“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! PLU should demonstrate on Friday comrade! All Security Services are instructed to leave our supporters/ordinary Ugandans to demonstrate at the Turkish Embassy on Friday 19th June 2026!” Gen Muhoozi posted on his official X (formerly Twitter) account on Tuesday, June 16, 2026.
The General’s public pronouncement has thrown the multi-billion-dollar project into immediate uncertainty. As of late Tuesday evening, neither the Ministry of Works and Transport, led by Fred Byamukama, nor the main SGR Project Secretariat had issued an official statement confirming a formal, legal termination of the contract.
Because the deal was legally finalized in late 2024 and preliminary works—including the construction of worker camps and sleeper factories—have been actively progressing into 2026, Gen Muhoozi’s public dismissal has left observers, diplomats, and local sub-contractors stunned, waiting to see if the central government will officially ratify the directive.
Ironically, the explosive development comes just weeks after the African Development Bank (AfDB) reaffirmed its commitment to partially finance the project. On May 29, 2026, Uganda’s Ministry of Finance announced that the AfDB had tentatively allocated $650 million under the African Development Fund 17 framework to finance the 326-kilometre section from Malaba to Kampala.
During the bank’s annual meetings in Brazzaville, Republic of Congo, AfDB Acting Vice President Dr. Abdul Kamara met with a Ugandan delegation led by Assistant Commissioner Mustapha Achidri. Dr. Kamara pledged that the final project financing arrangements would be concluded during an upcoming appraisal mission scheduled for July 2026, praising the SGR for aligning with the bank’s priority of building resilient African infrastructure.
The 272-kilometre main electric rail line segment, meant to run from Kampala to the Kenyan border town of Malaba, has faced a turbulent history. In 2013, the leaders of Uganda, Kenya, Tanzania, South Sudan, and Rwanda broke ground on the regional SGR initiative to boost trade for a market of over 300 million people. However, while Kenya and Tanzania made significant strides, Uganda stalled.
Uganda initially signed an agreement in 2015 with China Harbour and Engineering Company Ltd (CHEC) to implement the project, on the condition that the firm secure financing from the Beijing government. After eight years of fruitless financial negotiations, Uganda terminated the Chinese contract in 2023 and subsequently signed a fresh agreement with Yapi Merkezi in October 2024.
At the 2024 signing ceremony, Ministry of Works Permanent Secretary Bageya Waiswa noted that the project would take 48 months to complete, utilizing a blend of Uganda’s own funds, credit from Citibank, and export credit organizations. The project was heavily lauded by Secretary to the Treasury Ramathan Ggoobi as an economic game-changer, given that the Kampala-Mombasa highway route is considered one of the most expensive cargo roads in the world. The SGR was projected to slash regional transport and shipping costs by half.
The sudden hostility toward Yapi Merkezi marks a staggering U-turn for Gen Muhoozi. Only a few months prior, on December 17, 2025, the CDF hosted a high-level delegation from the Turkish firm at the Special Forces Command (SFC) headquarters in Entebbe.
Led by Board Member Sami Özge Arıoğlu and General Manager Mustafa Şahin Kopuz, the Turkish team had briefed Gen Muhoozi on technical designs, including a critical 2-kilometre tunnel slated to pass through military land in Mbuya. At the time, Gen Muhoozi urged the contractors to deliver high-quality work on schedule, and full construction works were greenlit to proceed in 2026.
With Gen Muhoozi now ordering state security apparatuses to step aside and allow political demonstrations at the Turkish Embassy, diplomatic relations between Kampala and Ankara hang in the balance. Turkish Ambassador to Uganda, Mehmet Fatih Ak, had previously hailed the partnership as a historic bedrock that would launch landlocked Uganda’s exports onto the competitive global stage.
Government spokespersons were unavailable for comment by press time to clarify whether Gen Muhoozi’s social media directive constitutes an official executive decree or a shift in the country’s geopolitical alignment.
