RAIL TRANSPORT

SGR set to collect less revenue in 2020 due to reduced trips

In Summary
  • This after Kenya Railways, the SGR regulator gave a directive that as from Friday March 27, 2020 only one train shall operate between Mombasa and Nairobi.
  • The train which carried a maximum of 7000 passengers daily can now only carry a maximum of 4200 passengers per trip.

Passenger revenue for the Standard Gauge Railway is set to fall due to a drop in the number of travelers following the suspension of Madaraka Express Service due to the curfew.

This after Kenya Railways, the regulator gave a directive that only one train shall operate between Mombasa and Nairobi from March 27.

The train service which carries a maximum of 7,000 passengers daily can now handle 4,200 passengers per trip.

 
 

In 2018, Kenya Railways data shows that China Communications Construction Company, the operator, increased sales from the passenger service to Sh1.76 billion, up from Sh1.23 billion a year earlier reflecting a growth of 43 percent.

The revenues were not enough to meet the operation costs, which are estimated at Sh1.5 billion a month.

With the suspension of the afternoon train and the rule on social distancing, the SGR is set for a dip in revenues.

Kenya Railways also adjusted the Nairobi Commuter Rail Service schedules to allow passengers get home before the curfew time

However, the Standard Gauge Railway cargo service will continue to operate on a 24-hour basis to ensure seamless movement of goods.

 
 

This is to ensure the country maintains a constant supply of imports ad exports, at a time when the coronavirus has hit the country.

According to KNBS the freight services, which started in January 2018, generated Sh4 billion in the year to December.

In 2019, Kenya Railways earned Sh10.1 billion from the cargo service in the year to June 65.56 per cent below its target of Sh24 billion.