SGR records KSh 18b in profit 7 years after its commissioning

Following the high haulage of freight and passengers in the Standard Gauge Railway ( SGR), the state agency has experienced a 21% profit increase in terms of revenue collection.

Kenya Railways Corporation’s (KRC) financial statement showed that SGR recorded a profit of KSh 18.2 billion for the financial year ending June 2023 compared to a profit of KSh 15.01 billion reported during a similar period in 2022.

SGR increased passenger fare

Given that a 50%  increase in the new revised massager’s fare was made this year, the firm is optimistic about more rise in profit

SGR annual revenue collection has been magnificent since the train service was set in motion in 2017 by Ex-President Uhuru Kenyatta’s regime.

Through the Meter Gauge Railway (MGR), the KRC pocketed KSh 2.36 billion, while KSh 436 million from the Railway Training Institute and another Ksh 1.24 billion from non business like rent.

The number of passengers who enjoyed the train’s service immediately after its introduction was recorded at 1.39 million.

SGR freight numbers

And in terms of freight transportation, the same script has played out where numbers have been gradually rising.

The data observed that the haulage of goods through the SGR has witnessed an increase with the recent recorded at 6.29 million tonnes compared to 5.66 million tonnes in the year to June 2022.

In its first year of operation, a haulage of 950,396 tonnes was recorded.

“The demand for the service grew over the period arising from its reliability, quality of services and convenience,” said the firm as quoted by Business Daily.

Why Kenya Railways increased SGR fares

The agency argued that they took the move to increase passenger fares by 50 per cent from Nairobi to Mombasa following price fuel increase and maintenance of train goods services.

This means a passenger travelling in the first class coach now pays KSh 4,500 compared to last year’s fare, KSh 3,000.

The economy-class coach now goes for KSh 1,500, KSh 500 more than the initial fare.

Phillip Mainga, the Company’s managing director, last year highlighted that 90% of SGR operations had been transferred to Kenya Railways.