Kenya Railways Corporation (KRC) has increased the fare on the standard gauge rail (SGR) train between Nairobi and Mombasa by 50 percent effective January,1st 2024 as last month's fuel hike continues to hit consumers.
The adjustments will see passengers pay Sh 4,500 on first-class coaches up from Sh 3,000 - an increase of 50 percent between Nairobi and Mombasa. Those on economy class coaches will pay Sh1,500 up from Sh1,000-representing an increase of 50 percent.
The fare adjustments have also been affected on the SGR commuter service, Nairobi Commuter rail service, Kisumu safari train service, and Nanyuki safari train service.
The adjustment comes in the wake of increases in fuel prices in the current monthly review cycle by the Energy and Petroleum Regulatory Authority.
A litre of petrol increased by Sh5.72 while diesel prices rose Sh4.48 and Sh2.45 for kerosene.
"The increase is informed by changes in the energy & petroleum sector where prices of fuel have significantly increased thus affecting the cost of our operations," said a statement by KRC on Wednesday.
The government slashed the fare to Sh700 from an initial agreed Sh900 during the launch of the Sh327 billion railway to drive traffic in the country’s biggest infrastructure project since independence more than 50 years ago.
Kenya tapped over half a trillion shillings from Chinese lenders to fund the construction of the SGR from Mombasa to Naivasha.
Taxpayers have been forced to shoulder the burden of the SGR loans because revenues generated from the passenger and cargo services on the track are not enough to meet the operation costs, which stood at Sh18.5 billion in the year to June 2022 against sales of Sh15 billion.
The fares on the SGR for economy class ticket was then adjusted to Sh1,000 between Nairobi and Mombasa while the first class fares remained at Sh 3,000.
