SGR revenue up by Ksh.220 million even as passenger numbers drop after price hike

The Standard Gauge Railway (SGR) posted a revenue increase of Ksh.220 million from January to March 2024 despite a significant drop in the number of passengers using the service, the latest data from the Kenya National Bureau of Statistics (KNBS) shows.

According to the 2024 Leading Economic Indicators Report, passenger revenue hiked from Ksh.660 million posted in the first three months of 2023 to Ksh.880 million within the same period in 2024.

The increase comes amid the new prices introduced to SGR passengers which took effect on January 1, 2024.

In the fare review, passengers travelling from Nairobi to Mombasa pay an extra Ksh.500 for economy class while those using first class now pay Ksh.4,500 up from Ksh.3,000.

At the time, Kenya Railways cited an increase in fuel prices which affected their cost of operations hence necessitating the review.

Notably, the number of passengers using the SGR train dropped by 65,833 during the same period, showing how the new prices affected the majority of passengers who have to grapple with the high cost of living.

In February 2024, photos went rounds on social media of empty SGR trains, depicting a grim economy as passengers opted to abandon the train as their means of transportation. Kenya Railways, however, dismissed the photos and reassured Kenyans of normal service operations.

The SGR train has a capacity of 1,260 passengers and also consists of a luggage carrier with a capacity of 70 tonnes.

According to the report, the number of passengers travelling in February 2024 dropped from 192,376 in January to 158,652. The number, however, increased to 180,645 in March 2024.

In 2023, an estimated 227,352 passengers travelled using the SGR monthly, with February showing the lowest figures at 163,016. Peak months were recorded in December (304,605), January (247,011) and April (239,685).

In total, SGR collected a passenger revenue of Ksh2.9 billion in 2023 and has so far collected Ksh.880 million in 2024.

Kenya Railways Managing Director Phillip Mainga revealed plans to add 19 coaches to boost the efficient delivery of SGR services. These comprised four business class coaches, three first class and 12 economy coaches.

“These additional coaches will support the high demand for Madaraka Express Passenger Services,” Mainga stated during the flagging-off ceremony of 430 new freight wagons in March 2024.

The government has also revealed plans to spend over Ksh.100 billion to revamp the line between July 2023 and July 2026, including the purchase of additional locomotives and freight wagons at a cost of Ksh11.9 billion, according to the National Treasury.

This is in line with the plans to extend SGR from Naivasha to Malaba and to Kampala in Uganda and the Democratic Republic of Congo (DRC) to enhance trade ties among the nations.

During a meeting held at State House in Nairobi on May 16, 2024, President William Ruto and his Ugandan Counterpart Yoweri Museveni ordered their respective ministers to mobilise funds for the implementation of the project.

“The meeting emphasised the importance of extending the SGR from Naivasha to Malaba and all the way to Kampala and DRC as an efficient and sustainable infrastructure for the transportation of goods,” Ruto stated during the press briefing.

Currently, the SGR train services comprise of Inter-County which begins at 8:00 am, Afternoon Express which departs at 3:00 pm and Night Express which leaves at 10:00 pm.

For the inter-county, the train traverses over six counties including Kilifi, Kwale, Taita Taveta, Makueni, Machakos and Kajiado.