Bus companies are warning of tough times ahead after Kenya Railways (KR) announced new train services, saying it will eat into their market share.

Kenya Railways announced that it will launch a new passenger service trains to Western Kenya this year weeks after launching train services to Nanyuki.

“In 2020, we stuck to our lane and launched services that change lives. Thank you Kenya for the support.

Lakeside and Western Kenya get ready, 2021 is here,” Kenya Railways said on its Twitter handle.

Managers at Mash East Africa say the Western Kenya route could push the company to a tight corner since this is their most profitable route.

“I can see the danger which is coming, times are already hard but we are surviving, western Kenya is our centre stage,” said the General Manager of Mash East Africa Lenocks Shalo.

He adds that the night trains will hit the bus companies hard because most passengers prefer to travel at night.

Shalo says that the poor services offered by the trains such as uncomfortable seats and overcrowding could see them retain some of the customers.

Many passengers

“When the SGR trains to Mombasa were first launched, we lost so many passengers but some of them have comeback,” he adds.

The buses and matatu operators further accused the government of favouring Kenya Railways by allowing trains to travel at night without social distancing rules.

Matatu Owners Association chairman Simon Kimutai says that the sector is booking huge losses since the outbreak of the pandemic in the country.

“There is alot of discrimination, we feel discriminated against when it comes to issues such as social distancing.

Trains are carrying at full capacity while matatus are only operating at 60 per cent,” said Kimutai.

Kimutai also decried the curfew times where matatus have to stop operating at 10pm while Kenya Railways trains are just launching a night services train.

The PSV operators are calling for negotiations with the government to ensure a level play ground for the everyone.

The bus operators that will be most affected by increased competition from Kenya Railways include Mash East Africa, Easy Coach, Modern Coast, Matunda, Guardian and Crown Bus.

On the Mount Kenya route, several Saccos such as Thika Road Transporters, Kekena, Kekena Travellers among others will also see their customers acquire bargaining power.

Mount Kenya trains started operating last month pulling crowds with cheaper prices.

Kenya’s transport system has been dominated by road transport for years handing road transport entrepreneurs handsome gains but Kenya Railways is now threatening to erode their marketshare.

No choice

Kenyans travelling to Thika, Mitubiri, Makuyu, Maragua, Murang’a, Sagana, Karatina, Kiganjo and Naromoru now can choose between trains and PSVs unlike in the past when they had no choice. 

Kenya Railways said that it has ordered more locomotives which it will use on the existng routes.

Consumers are set to see their bargaining power increase as supply for transport services increases unlike before when demand was by far more than supply.

This high demand led to the emergence of cartel like network that hikes prices anytime leaving consumers with recourse.

Kenya Railways was last month forced to  increase the number of trains plying the Nairobi-Nanyuki route to meet the holiday rush for Christmas and New Year celebrations.

It said i was overwhelmed after passengers turned up in large numbers at the Nairobi Central Railway Station, streaming in from as early as 6am, and by 8am, the train was full to capacity.