CHINESE INVESTMENT

How SGR led to booming business for residents

It made travelling to Coast with family cheaper, spurring domestic tourism

In Summary

• Before SGR, family of six or seven could spend Sh30,000 on ticket, now less than half

• As such, 80 per cent of people using SGR are local tourists and 20 per cent foreigners

After finishing his university education, Archemedis Motuka saw a business opportunity because of the standard gauge railway project. https://bit.ly/3HGvGGC

Archemedis Motuka, CEO of Hakeem Travel and tours, a company which has private taxis that ferry people from the SGR terminal to different destinations.
Archemedis Motuka, CEO of Hakeem Travel and tours, a company which has private taxis that ferry people from the SGR terminal to different destinations.
Image: Aura Ruth

After finishing his university education, Archemedis Motuka saw a business opportunity because of the standard gauge railway project.

“When I landed from the train, I saw an opportunity whereby there was a lot of demand but not much supply,” he told the Star.

“SGR had brought a lot of people but there were only a few cars to carry them to their destinations.” 

He started Hakeem Travel and Tours company to provide a means of transport for hundreds of travellers from the Mombasa terminus to other parts of the Coastal region.

He began his business with his mother's old car, which he refurbished, and entered the market in search of pasture.

“When I was joining SGR, I did not have any form of employment. I just came from school and went straight to SGR, which has been so beneficial to me. Now it has been four years and personally, I can say that I am lucky because I never got a chance to tarmac,” he said.

For now, Motuka has many people who help him run his businesses.

He has three SGR booking offices located at Bamburi, Mtwapa and CBD, where people do early ticket booking.

“We were only four people in the business but now we are 72. We had only 22 taxis but now the number has increased to 308,” he said.

Motuku says he now owns six taxis, whose acquisition was through the proceeds of his business activities that rely on the SGR project.

Before the SGR was built, the movement of people to the coastal region was hectic and expensive to many.

The Coast region being the leading tourist destination, many Kenyans troop to the region to have a walk on the white sand and swim in salty water during the festive season.

While the beaches and shores of the Indian Ocean offer wonderful sceneries to behold and enjoy life in the Coast region, the journey to this magnificent nature was an uphill task for many years.

In 2018, SGR was a game changer. The project became a reality after the Kenya government signed a deal with the Chinese government to start a project funded by the Chinese government.

The project was envisioned as one that would ease the movement of people and goods to the Coast region.

After its launch, it led to booming business that benefited many residents.

Pauline Tata, a resident from Makueni, prefers travelling with SGR because it is cheap and affordable.

“It is faster compared to travelling by road and their services are very nice. Since its introduction, I have always been using it whenever I visit Mombasa,” she said.

Emi, a foreign tourist from Italy, opted to use the train from Nairobi instead of flying to have the experience.

“It is on the landscape and you do not have to queue. This is my first time in Kenya and the trip was really nice. The train was very clean and I was surprised that they mop the floor many times and that was great,” she said.

“If anyone is travelling from Nairobi, I would advise them to use the train because it is the best.”

Kenya Association of Hotel Keepers and Caterers executive officer Sam Ikwaye during an interview at his office in Mombasa
Kenya Association of Hotel Keepers and Caterers executive officer Sam Ikwaye during an interview at his office in Mombasa
Image: Aura Ruth
SGR has increased the number of tourists by 50 per cent because before, we depended on airlines and road transport only. If you want to travel in large numbers and in groups, SGR is the best
Sam Ikwaye

BOOST IN TOURISM

The SGR has been a big contributor to the tourism industry not only in Mombasa but across the Coast region counties.

Kenya Association of Hotel Keepers and Caterers executive officer Sam Ikwaye describes SGR as a blessing not only to people who use it to travel on a daily basis but also to the tourism sector in the coastal region.

He said the coastal region got a new lease of life with the arrival of SGR because previously, the tourism sector suffered a lot of challenges, including inaccessibility.

“The road network and road infrastructure then were not very good. In 2018 and 2019, we really saw a surge in numbers of people who were visiting thanks to the operationalisation of SGR during that particular time,” he said.

Ikwaye said that as tourism players, they credit the SGR project for the diversity in the number of clients who visit their premises in Mombasa.

He said the SGR itself has been a major attraction because many people want to enjoy the railway mode of transport.

Ikwaye said accommodation services being offered by hotels have incorporated SGR as a package, a move he says has attracted more customers. 

He adds that many people opt to use the SGR project since it offers travellers a rare glimpse of wildlife for passengers, given that it passes through national parks.

“SGR has increased the number of tourists by 50 per cent because before, we depended on airlines and road transport only,” he said.

“If you want to travel in large numbers and in groups, SGR is the best.” 

The former Kenya Tourism Federation chairman Mohammed Hersi said there was a big shift in 2018 and 2019 in tourism performance due to the coming of SGR.

He said the SGR has played a big role and it has been a major contributor when it comes to domestic travel because it is affordable, available, safe and can accommodate many people.

A family that could have paid Sh30,000 for a ticket during the festive period is suddenly paying less than half of that to travel as a family of six or seven.

“SGR has been a major contributor. Madaraka Express has done a lot of good for us and not only in Mombasa because the impact is felt even in Diani in Kwale county, Vipingo, Watamu and Malindi in Kilifi county,” he said.

He said the Mtito Andei and Voi stations drive tourism because when one alights at Mtito Andei, a tour van can pick up the tourist from there and take them to Emali-Loitoktok road to access Amboseli, which is in Kajiado county.

“Likewise, you can also disembark at Voi and access Voi gate and you are already in Tsavo East,” he said.

“Alternatively, you can drive to Tsavo West into private conservancies like the Taita Hills wildlife sanctuary, where we have Saltlick, Safari lodge and Taita Hills. We have a lot of investments that have come up in that area because accessibility has become easy through SGR.”

The former Kenya Tourism Federation chairman Mohammed Hersi during an interview at his office in Mombasa
The former Kenya Tourism Federation chairman Mohammed Hersi during an interview at his office in Mombasa
Image: Aura Ruth

FUTURE EXPECTATIONS

Hersi says the SGR project has also raised the profile of Kenya as many foreigners are amazed when they use it as a means of transport.

“The contribution of Madaraka Express has been huge and we cannot thank them enough. SGR has been a game changer for us and we want them to maintain the standards,” he said.

“We want them to continue maintaining timekeeping because we are getting international tourists whom we are sending a lot of packages to, including the training package,” he said.

“They are actually amazed that the train leaves and arrives on time, something which they say is very unusual in Africa.”

He said they hope that the bypass to Diani will be completed by June so that it can help in ferrying tourists from the terminal to Diani in Kwale county, something which will completely change how they do business in Diani and open the Kenya coast.

Hersi called upon the Kenya Railways and the national government to operationalise the Miyaseni station, which is located at Bachuma gate and serves as the entrance to Tsavo East national park.

“There is a train station that has never opened and when they were doing this, what they had in mind was international tourism to get off at this particular station, and the tour vans then pick them and get into Tsavo East,” he said.

“Therefore, we would like to see this particular train station opened because it is a beautiful station that should be put to use.” 

Kenya Railways managing director Philip Mainga said 80 per cent of people using the SGR are local tourists, and 20 per cent are foreigners who are visiting the country.

He said there are three trains which operate in the morning, afternoon and at night, with 8,000 to 9,000 people on board in a day.

The MD said 142,000 people used the train in October and 195,000 in November 2022 from Mombasa terminus to Nairobi and back.

In a year, at least 2.3 million people use the three trains.

“Most local people can afford travelling by train, which costs them only Sh1,000 compared to bus fare, which is high. The trains are cheaper, favourable and more efficient,” he said.

Maingi said the government came in not only to get the money in their pocket but also to ensure that Kenyans can tour Mombasa with family at an affordable rate to enjoy and relax, something which was not happening before.

He said the coming of SGR has also reduced the number of accidents on the roads.

“The demand is high and we are working towards buying more coaches so that we can accommodate all the numbers,” he said.

“We also have an additional train that goes up to Kisumu. Therefore, the population has grown and the SGR has attracted many because it is cheaper and always on time.”

Apart from working on time, he said the trains have comfort, fun and a good experience of the green park scenery, especially at the Tsavo national park.

The SGR does not only serve as the most affordable means of transport but it has also contributed to the increase of the country’s economy.

WATCH: The latest videos from the Star