The 50 per cent increase on Standard Gauge Railway tickets from January could slow down travel between Nairobi and Mombasa affecting domestic tourism, hoteliers now say.
Kenya Railways on Wednesday announced tickets will go up starting next year, with first class costing Sh4, 500 up from Sh3, 000 between the two cities.
Travelling in the economy class will cost Sh1, 500 up from Sh1, 000, between the capital and the beach destination of Mombasa.
Between Nairobi and Voi, which is the main town and key connection to facilities in the Tsavo National Park, travellers will part with Sh3, 200 for first class up from Sh2, 130. Economy will cost Sh1, 060 up from Sh700.
“The increase is informed by changes in the energy and petroleum sector where prices of fuel have significantly increased thus affecting the cost of our operation,” Kenya Railways said in a statement.
The new fares come into effect on January 1.
While they are not against a price increase, owing to the increase in the cost of fuel and overall operational costs across sectors, industry players yesterday said the sharp increase was unnecessary.
“Everything has gone up due to cost of fuel however I don't think that would justify the tripling of SGR fare. Even matatus have not tripled their fares. They (Kenya Railways) would have increased it by between Sh200 and Sh300,” Kenya Coast Tourism Association (KCTA) chief executive Julius Owino told the Star yesterday.
He said while it might not have a big impact, the domestic traveller is currently battling a high cost of living, hence could affect travel budgets.
“Since we are living in tough economic times, that Sh1, 500 would buy them local souvenirs or a drink,” Otieno said.
Kenya Association of Hotelkeepers and Caterers (KAHC) executive director (Coast) Sam Ikwaye noted that hotel rates are also set to increase, as a result of the increase in operational costs.
With reduced disposable income and a high cost of living, travel is likely to come last in household budgets.
Pollmans Tours and Safaris Group Director of Operations, Mohamed Hersi, said while the increase was overdue, a 50 per cent increase is on the higher side.
He foresees a return of business to the roads where bus companies had been thrown struggling with reduced numbers since the coming of the SGR.
A return ticket on the SGR first class, Hersi said, is almost equivalent to a flight on low-coast carriers when travellers make early bookings.
“ They (Kenya Railways) need to be careful not to overprice themselves. This could be an opportunity for buses to come back,” the seasoned hotelier told the Star on the telephone.
He said the sharp increase was not good, even as he challenged the operators to maintain high standards now that prices are going up.
“Don’t increase ticket prices and travellers fail to get quality service. We need clean toilets and order in the train,” Hersi said, noting that alcohol consumption is still a problem.
SGR has been instrumental in supporting the coast region’s businesses and tourism sector, moving passengers between two cities both day and night.
During the first quarter of the current financial year (July-September) the number of passengers transported via SGR rose by 15.2 per cent from 518,800 in the first quarter of 2022, to 597,500.
This came amid a 6.2 per cent growth in the transportation and storage sector, which expanded by 6.2 per cent compared to 7.7 per cent growth in a similar quarter of 2022.
“The growth was attributed to improved performance in most of the sub-sectors, especially transportation of passenger and freight through rail,” Kenya National Bureau of Statistics notes in its latest quarterly report.
