Corporation rules out fare cut for SGR first class travellers

The Sh3,000 fare for first class passengers on the Standard Gauge Rail (SGR) train between Nairobi and Mombasa will not be adjusted downwards any time soon.

Kenya Railways (KR) managing director Atanas Maina, said Friday that a change in the existing rates would result into price unpredictability for the service.

The government in March increased the promotional Sh700 fare on the modern train to Sh1,000 for second class passengers and retained the Sh3,000 fare for first class passengers.

Passengers along the route have, however, been calling on KR to reduce the rates for first class passengers, saying they are not getting value for their money.

“We will not be adjusting the charges on first class coaches on SGR train any time soon. We want to make this service simple, straight forward and predictable," said Mr Maina.

More sales

Kenya Railways increased fares for the economy class to push for more sales and cut reliance on Treasury cash injections that keep SGR business afloat.

Taxpayers paid billions to the Chinese firm operating the Nairobi-Mombasa SGR line as the mega rail struggles to raise adequate revenues for its operations.

The Transport committee of the National Assembly said the Treasury was forced to review its budget to accommodate an additional Sh59 billion.

This means that taxpayers are topping up the fees that cargo owners and passengers are paying on the line — which is aimed at cutting the cost of transport and boost trade, by replacing a narrow-gauge line that has slower top speeds.

Fares on the new track have been inadequate to meet the operation costs in the short term, prompting the state subsidies.

SGR ticket sales stood at Sh590.2 million in six months to December.