Fewer people are riding Kenya's SGR trains this year. The trains carried 650,352 passengers from July to September. That's down 7.2% from the same months in 2023.
Earlier in 2024, ticket prices went up significantly. Kenya Railways wanted to make more money to pay costs, so they raised economy tickets from 1,000 to 1,500 shillings and first-class tickets from 3,000 to 4,500 shillings.
The higher fares aimed to help pay back the big loan used to build the SGR. China lent Kenya 485.63 billion shillings ($3.75 billion) for the project. Some of the ticket money would also be paid to the Chinese company that runs the trains.
But the fare hike has meant fewer riders overall. Passenger numbers already fell almost 10% in the first six months of 2024. The last time ridership dropped was during the Covid pandemic.
Kenya Railways needs the money to cover rising costs and repay the Chinese loan. The combination of higher prices and fewer customers is creating worries.
Freight traffic on the SGR is also down. From July to September, the trains carried 1,720,300 metric tons of cargo, which is 0.8% less than the same period in 2023.
The SGR's future as an affordable way for Kenyans to travel seems uncertain. Experts are concerned about the railway's finances. Paying off the loan and bills is getting harder with less income from tickets.
Earlier in 2024, ticket prices went up significantly. Kenya Railways wanted to make more money to pay costs, so they raised economy tickets from 1,000 to 1,500 shillings and first-class tickets from 3,000 to 4,500 shillings.
The higher fares aimed to help pay back the big loan used to build the SGR. China lent Kenya 485.63 billion shillings ($3.75 billion) for the project. Some of the ticket money would also be paid to the Chinese company that runs the trains.
But the fare hike has meant fewer riders overall. Passenger numbers already fell almost 10% in the first six months of 2024. The last time ridership dropped was during the Covid pandemic.
Kenya Railways needs the money to cover rising costs and repay the Chinese loan. The combination of higher prices and fewer customers is creating worries.
Freight traffic on the SGR is also down. From July to September, the trains carried 1,720,300 metric tons of cargo, which is 0.8% less than the same period in 2023.
The SGR's future as an affordable way for Kenyans to travel seems uncertain. Experts are concerned about the railway's finances. Paying off the loan and bills is getting harder with less income from tickets.
