SGR Passenger Train Madaraka Express Nets Sh530 Million in Six Months

The Standard Gauge Railway’s commuter train, Madaraka Express netted Sh530 million from passenger travel in 2017, pushing Kenya Railways’ net profit to Sh700 million. 

This was up from the Sh134 million generated in 2016, representing a 60 percent increase in income for the railway operator.

The passenger train service for the new railway line was launched in June 2017 by President Kenyatta and has attracted thousands of travelers due to shortened travel time between Nairobi and the coastal city of Mombasa.

The 2018 Economic Survey indicates that 689,205 passengers used Madaraka Express to travel between the two cities, generating Sh530 million income.

“The overall increase in passenger journeys and revenue from passenger service is mainly due to the Standard Gauge Railway (SGR) passenger service that commenced in the second half of 2017,” the 2018 Economic Survey reads in part.

However, cargo service posted poor results, with revenue dropping to Sh4.8 billion, a 37 percent decline. This was a result of the disruption of operations by Rift Valley Railways (RVR) after the government ended the 25-year concession deal.

“Freight traffic decreased by 16.9 percent from 1,380 thousand tons in 2016 to 1,147 thousand tons in 2017 due to operational challenges faced by RVR,” the report indicates.

During the Launch, President Kenyatta announced the fare prices between Nairobi and Mombasa at Sh700 one way for economy class and Sh 3,000 for first class category. The fee has since been revised upwards to Sh1000 for economy class.