Standard Gauge Railway records drop in passenger, cargo volumes

The Standard Gauge Railway (SGR) recorded a 65,000-passenger drop and reduced cargo volumes in the first quarter of 2024.

 This was outlined in the Quarterly Gross Domestic Product (GDP) Report by the Kenya Bureau of Statistics (KNBS) released on Wednesday.

 KNBS noted in the report that on average, the transportation and storage sector  registered an estimated decelerated growth of 3.8 per cent in the first quarter of 2024 compared to a 6.6 per cent growth recorded in the same quarter of 2023.

Statutory dedications

 “The number of passengers transported via Standard Gauge Railway (SGR) declined by 11.0 per cent from Sh597,500 in the first quarter of 2023 to Sh531,700 in the first quarter of 2024,” the KNBS Quarterly Report indicated.

 “Similarly, the freight haulage via SGR declined by 17.4 per cent from 1,577.9 thousand metric tonnes in the first quarter of 2023 to 1,303.3 thousand metric tonnes in the period under review.”

 While SGR continued to struggle with cargo and passenger volumes, KNBS noted that the revenues increased marginally.

This could be attributed to a 50 per cent ticket price hike introduced in January 2024.

 “Revenue generated from freight stream rose marginally from Ksh3,140 million in the first quarter of 2023 to Ksh3,245 million in the corresponding quarter of 2024,” the report indicated. 

Statutory dedications

SGR depends largely on cargo from the Port of Mombasa to sustain its operations but is in competition with other logistics companies including trucks and the metre gauge railway line.

 The SGR line was built by former President Uhuru Kenyatta’s administration through a loan from China at the tune of Sh800 billion.

 Despite the struggling operations, President William Ruto’s administration has signalled a willingness to borrow more cash to extend the SGR line from Naivasha to the Ugandan border.