Why SGR train fare to Mombasa has risen to Sh1,000

Kenya Railways will increase the fare on the standard gauge rail (SGR) train between Nairobi and Mombasa by 42 per cent to Sh1,000 in may to pay the Chinese firm operating the rail.

Transport and Infrastructure secretary James Macharia on Thursday said the fare was reviewed upwards to help cover the cost of operation.

The government cut the fare to Sh700 from an initial agreed Sh900 during the launch of the Sh327 billion railway in June last year to drive traffic in the country’s biggest infrastructure project since independence more than 50 years ago.

The project is funded by China.

Taxpayers have been topping up the fees that passengers pay to cover the operation costs of the new rail operated by China Communications Construction Company.

“It will now go up because what we have been generating has not been enough not enough to cover our costs,” said Mr Macharia.

“I don’t think that we will lose passengers. After all, the train will take less than five hours as opposed to buses that take longer to cover the same distance.”The Treasury allocated Sh15.5 billion before its June launch to support SGR commercial operations.

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Kenya Railways in January lowered SGR cargo charges on Mombasa—Nairobi line by up to 40 per cent, as part of wider drive to increase traffic on the multibillion-shilling new track and reduce road freight.

The cost of transporting a 20 foot container from Mombasa to Nairobi fell to $350 (Sh36,000) from Sh50,000 while a 40 foot is now charged at Sh41, 200 down from Sh70,000, reflecting a 41 per cent cut.

The cargo service has since its launch in January 1 failed to replicate the success of the passenger service with experts blaming the freight charges for reduced traffic on SGR.

The SGR line has cut the journey between Nairobi and Mombasa to four hours from 13 hours.