The Standard Gauge Railway (SGR) in Kenya has seen a significant drop in passenger numbers, leading to a revenue loss of Ksh 144 million in just two months. According to the Kenya National Bureau of Statistics (KNBS), the number of passengers using the SGR declined by over 100,000 between August and September 2024. In August, 281,683 passengers traveled by the SGR, but this figure fell to 175,901 in September, marking a sharp drop of 105,782. As a result, the revenue generated by the train service dropped from Ksh 440.6 million in August to Ksh 296.4 million in September. This decrease in passengers and revenue has raised concerns about the future of the railway service.
The report released by KNBS also revealed a worrying trend over the past nine months of 2024. The total number of passengers using the SGR has decreased by 171,803 compared to the same period last year. In 2023, the SGR recorded 1,779,134 passengers between January and September, but in 2024, this number has fallen sharply. Despite this overall decline, there has been some growth in revenue, with the SGR earning an additional Ksh 770 million in 2024 compared to the previous year. This suggests that while fewer passengers are using the service, those who do are contributing more to the revenue. The monthly revenue data highlights that April, July, and August were the best-performing months, with the highest figures recorded in those months.
One of the challenges the SGR faces is the fluctuation in passenger numbers. While July was the best-performing month in terms of passengers, with 192,768 travelers, the months of February, April, May, and September experienced a noticeable drop in demand. Many factors could be contributing to this inconsistency. Some passengers may be opting for other forms of transport, such as buses or private vehicles, due to various reasons, including the cost, convenience, or travel time. Another possible reason for the decline is the seasonal nature of travel, with certain periods seeing fewer people traveling for business or leisure.
Additionally, although the SGR continues to offer an affordable and reliable mode of transport for many, its competitiveness with other forms of transport remains a challenge. The affordability and speed of the SGR are some of the main reasons why people continue to use the service, especially during peak months. The SGR has also been praised for its ability to transport heavy loads more efficiently than the older Meter Gauge Railway (MGR). However, during months when fewer people travel, the revenue generated from passenger services is severely affected, highlighting the dependence of the railway on consistent demand to remain profitable.
The SGR is also not immune to the impacts of seasonal changes in the economy, with the months of April and May, typically associated with the rainy season, showing lower passenger numbers. This could be a factor in the decline, as some passengers may avoid travel during adverse weather conditions. This inconsistency poses a challenge for Kenya Railways, the government parastatal managing the SGR, as it tries to stabilize the service’s financial performance.
In the cargo transport sector, the SGR has faced a similar decline in the volume of goods being transported. Between August and September, the amount of cargo transported dropped from 582,000 metric tons to 512,500 metric tons. Despite this decrease, revenue from cargo services has slightly increased, with the railway generating Ksh 1.2 billion during the same period. This suggests that while fewer goods are being transported, the SGR has managed to earn more by charging higher fees or increasing the prices of cargo services.
These developments show that while the SGR is still contributing significantly to the economy, it faces challenges in maintaining passenger numbers and stabilizing revenue. The railway service plays a crucial role in facilitating transport between cities and towns, offering a faster and more affordable alternative to road transport. However, the recent decline in passenger numbers and revenue raises questions about the factors affecting its appeal to travelers.
The government must consider these factors carefully and work to address the issues affecting passenger demand. Ensuring that the SGR remains a viable and attractive option for travelers could involve looking into the pricing strategies, improving the overall travel experience, and addressing the seasonal challenges that impact ridership. The focus should be on making the SGR a more dependable service for the people who rely on it, while also encouraging more people to choose it over other transport options.
