The Standard Gauge Railway (SGR), which was dubbed the biggest infrastructural project in the history of Kenya made a loss of close to Sh10 billion in its first year of operation.
Figures from the ministry of Transport shows that the railway recorded a loss of Sh9.89 billion since it was launched by President Kenyatta in June, 2017, according to The Standard.
The Chinese-built project averaged a loss of Sh750.7 million per month in the 2017/18 financial year due to low cargo business, documents tabled by Transport and Infrastructure Cabinet Secretary James Macharia before National Assembly’s Transport Committee show.
Macharia said the government however estimates the railway will record a profit of Sh5.08 billion in the current fiscal year or a monthly earning of Sh424 million.
“Part of the reason we made the loss last year was that it was a bit difficult to convince people that the railway was good for their cargo businesses,” said Macharia.
“Also, we were in operation for only six months from June 2017 and we were only trying the waters.”
In 2014, Kenya signed a Sh324 billion deal with China’s Exim Bank for the construction of the modern railway between Mombasa and Nairobi.
Currently eight cargo trains are making trips to the Port of Mombasa daily and the government plans to increase them to 12 by the end of the year.
In a recent interview, Deputy President William Ruto confirmed that taxpayers have been coughing Sh1 billion per month as operation cost for the passenger train, Madaraka Express, raising questions on whether the project is sustainable.
10 billion or million?
10 billion or million?
10 Billion with a B. And…
10 Billion with a B. And with the Dry Land SGR “port” in Naivasha: the WORST is yet to come. This is Why when I saw some People BRAGGING about SGR’s good “revenue” not long ago: I said “Lets keep our Fingers crossed.”
With the way this SGR is…
With the way this SGR is treating Kenyans, it seems it may have been a big mistake that this administration made. If it’s all about money with total disregard for the dignity of Kenyans,it may in the long run not be worthy. Let our leaders learn not to push the country into development which is not grounded. Those kind of developments will end up making the country collapse.
We are loosing money and…
We are loosing money and dignity with this silly project. Just the other day DP Ruto said SGR is not a matatu. Macharia now says they need more cargo trains to offset the cost. What is what?
@Mheshimiwa Anonymous UI: …
@Mheshimiwa Anonymous UI: Haya ndiyo matokeo ya kuchanganya “uchumi na siasa.”
Kama wakumbuka, Mheshimiwa Dr. Uhuru Kenyatta, ndiye aliyeamua nauli ya kusafiri kutoka Nairobi mpaka Mombasa. Tangu lini rais wa nchi huamua mambo ya nauli?
Mradi (project) huu haukufikiriwa sana kabla haujatekelezwa. Madhumuni yake yalikuwa Jubilee ipigiwe kura na kuendelea kutawala nchi ya Kenya.
Huweza kuchanganya siasa na uchumi halafu upate matokea mema. Ni kama wanasayansi wanavyotuambia ya kwamba, huwezi kuchanganya maji ya kawaida na petroli!
How does the government…
How does the government intend to convince Kenyans to use the SGR, when the SGR is treating our people like they do not exist,(like second class citizens). This government should stop all development and first make sure it’s citizenry is able to feed itself 100 percent without involving foreigners. It’s a shame that we are involving foreigners even in our basic needs, while other leaders are paying millions to chase an inflated leather. This is pathetic. This is living beyond our means. And at this speed, we should expect the country to collapse in the near future because these are not sustainable projects. This is wrong leadership. God help Kenya!!
How can a monopoly lose…
How can a monopoly lose money? (This the only train running the show) A simple project study would have shown the number of travellers per year in the route in question and tons of goods and services that the train would have to handle. Then determine whether the project makes sense. @Imara is right. This was a political decision and Kenyans will pay through the nose for years to come. Think about what a country we have. We import everything and have nothing of our own: vehicles, machinaries, sugar, rice, used clothes etc. Those who have nothing of their own and needs another for survival, they’re slaves whether they know it or not.
Any business that loses…
Any business that loses almost a billion a month, should be closed down!!
The wonder boy is getting a…
The wonder boy is getting a new aide-de-camp like this is 1963 meanwhile his pet project SGR is making a 10B loss. How pathetic