SGR’s one year revenue up 6.3pc to Sh15 billion
Revenue generated from the standard gauge Railway (SGR) rose 6.4 percent to Sh15.3 billion in the 12 months to December last year, lifted by higher passenger movement and cargo volumes.
New data from the Kenya National Bureau of Statistics (KNBS) shows that the service crossed the Sh15 billion mark in full-year revenue for the first time since it was launched in 2017, helping efforts by the project to break even.
Revenue from passenger services stood at Sh2.6 billion, representing an 18 percent growth compared to Sh2.2 billion realised in 2021.
The higher revenue was driven by an increase in the number of travellers who used the train service to 2.39 million from 1.98 million the previous year.
The SGR also ferried six million tonnes of cargo between January and December last year, up from 5.4 million in 2021.
This helped raise cargo revenue to Sh12.67 billion from Sh12.17 billion previously.
“The key factors for improvement of SGR performance include enhanced marketing strategy put in place by Kenya Railways Corporation (KRC) targeting key stakeholders that includes shipping lines and major importers. That has seen volumes nominated for SGR improving,” KRC coast operations manager Thomas Ojijo told the Business Daily.
The improved earnings came despite earlier concerns that a directive by President William Ruto reverting cargo clearing services to the Mombasa port would hit its performance in the last quarter of last year.
A number of large importers have retained their shipments on the SGR to and from the Mombasa port, citing convenience and minimal risk of theft or destruction of cargo.
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