Standard Gauge Railway revenues grow to Sh18.2 billion

 

The Standard Gauge Railway (SGR) generated revenues totaling Sh18.2 billion as at the end of the last financial year, financial records show.

The amount represented a 21.2 per cent increase in revenues as of the end of June 30, 2023.

The growth was fuelled by an increase in cargo haulage and passenger traffic during the period under review.

In 2022, SGR generated revenues totaling Sh12.7 billion which was four per cent higher than the Sh12.2 billion the railway line earned in 2021.

The increase in cargo haulage at the time was due to the growth in cargo volume transported via the new line which rose from 5,407,000 tonnes in 2021 to 6,090,000 in 2022, a 12.6 per cent rise.

According to the Economic Survey Report 2023 by the Kenya National Bureau of Statistics (KNBS), the increase is despite container traffic through the Port of Mombasa reducing 1.9pc, from 34,661,000 to 33,880,000 tonnes in 2022 which is attributed to a decline in import of dry bulk cargo.

In the last financial year, number of passengers who used SGR grew to 2.52 million during the period, up from 2.35 million in the previous year.

Freight haulage via SGR also rose sharply to 6.29 million tonnes up from 5.66 million tonnes in the year to June 2022.

“The demand for the service grew over the period arising from its reliability, quality of service and convenience,” Kenya Railways Corporation said.

Kenya Railways gradually began taking over SGR operations from Africa Star Railway Operation Company in 2021.

The train service was launched by retired President Uhuru Kenyatta in 2017.

BY THE STAR