SGR Revenue Hits Sh936 Million as Passenger Numbers Fall to 529,591

Kenya Railways Corporation (KRC) recorded Sh936.29 million in revenue between January and March 2025 despite a continued decline in the number of passengers using the Standard Gauge Railway (SGR). This marks a 6.2% increase in revenue compared to Sh880.82 million collected during the same period last year.

According to data reported by Business Daily, passenger numbers fell to 529,591 in the first quarter of 2025, down from 531,673 in 2024 and 597,506 in 2023. This marks the third consecutive year of falling ridership and the lowest quarterly count since 2022, when 518,780 tickets were sold.

The revenue increase is attributed to a sharp fare hike introduced at the beginning of the year. Effective January 1, KRC raised the fare for first-class tickets on the Nairobi–Mombasa route from Sh3,000 to Sh4,500 and for economy class from Sh1,000 to Sh1,500. The new prices apply across both express and inter-county train services.

KRC cited rising fuel costs as the main reason for the fare adjustment. However, the higher prices have drawn public criticism, especially amid growing economic hardship among Kenyans.

While the revenue boost may help cover some operational expenses, it has not been enough to make the SGR self-sustaining. The project continues to rely heavily on government subsidies. In 2021, the Treasury controversially used Sh18.1 billion from the Petroleum Development Levy—collected from motorists—to pay Africa Star Railway Operation Company, the Chinese firm managing the SGR.

Kenya borrowed $5.08 billion (about Sh656.28 billion) from China to build the SGR and acquire rolling stock. Loan repayments began in 2020 following a five-year grace period. The SGR’s current income remains insufficient to fully service the debt and fund operations.

Looking forward, the government plans to borrow an additional Sh502.9 billion from China to extend the railway from Naivasha to Kisumu and ultimately to Malaba. Officials argue the extension will link Kenya’s rail system with Uganda, enhancing trade and mobility across the East African region.

Still, public concern continues to grow over the affordability and long-term viability of the SGR, especially given the heavy burden placed on taxpayers to keep it running.

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SGR Revenue Hits Sh936 Million as Passenger Numbers Fall to 529,591