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SGR returns 1.7 Billion a year instead of 1.5 Billion a Month -KRC

The standard gauge railway has fallen short of 17 billion from the 18 Billion targets. The SGR only increased sales from 1.2 Billion to 1.7 Billion per year. It was estimated to have 1.5 Billion sales per month for the project sustainable to be stable and sustainable.



Freight services, which started in January 2018, generated Sh8.4 billion in the year to June, internal performance data from Kenya Railways shows.



The data shows that China Communications Construction Company, the operator, increased sales from the passenger service to Sh1.76 billion, up from Sh1.23 billion a year earlier reflecting a growth of 43 percent. 



The revenues were not enough to meet the operation costs, which are estimated at Sh1.5 billion a month or Sh18 billion a year. Kenya Railways had budgeted to earn some Sh24 billion from the cargo service in the year to June, falling 65.56 percent below target. 



The below target performance was attributed to the reduced limited storage capacity at the Embakasi Inland Container Depot (ICDN).

Photo of SGR at Embakasi station. PHOTO | NMG



KRC data shows the freight service moved 4,009,386 tonnes of cargo in the year to June against a target of 8,022,514 tonnes.

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