The Standard Gauge Railway (SGR), a flagship infrastructure project in Kenya, has encountered notable setbacks recently. Over two months, the SGR recorded a Ksh 144 million revenue loss, stemming from a drop of 65,000 passengers and reduced freight volumes. These challenges underline operational inefficiencies and highlight the pressing need for reform in the management of the service.
A significant factor in the decline in passenger numbers was a 50% increase in ticket prices introduced earlier in 2024. While aimed at closing revenue gaps, the hike discouraged many commuters. Simultaneously, freight operations saw a 17.4% reduction in goods transported compared to the same period in the previous year. Despite this, slight revenue gains in freight services were noted, owing to revised pricing strategies.
To combat these challenges, Kenya Railways, the operator of the SGR, is actively seeking solutions to revitalize the service. Measures include upgrading critical facilities like security systems at major stations and acquiring new equipment to enhance efficiency. However, the SGR faces stiff competition from alternative transport options such as trucking services and the meter-gauge railway, further affecting its profitability.
Amid these operational difficulties, the government remains committed to expanding the SGR network to the Ugandan border. This plan has sparked debate, with critics urging a focus on improving the existing infrastructure and addressing current inefficiencies before embarking on costly expansions. Enhancing service quality, optimizing freight logistics, and reducing ticket prices could help rebuild trust and attract more users.
The SGR, which cost over billions to build, remains a vital component of Kenya’s transport system. However, its long-term sustainability will require strategic reforms, greater market alignment, and a focus on operational efficiency. The balance between addressing immediate challenges and pursuing ambitious expansion plans will be crucial for the future of this critical infrastructure.
