Kenya SGR freight services boost earnings

[John Ashworth]

SGR freight services boost earnings

Standard Gauge Railway earnings more than doubled between January and September 2019, new data shows.

Kenya National Bureau of Statistics data indicates that revenue from the railway line grew by 135 per cent to Sh8.82 billion compared to Sh3.74 billion over the same period in 2018, largely driven by increased freight hauling.

During the review period, revenue from SGR freight services nearly tripled to Sh7.54 billion from Sh2.61 billion in 2018. On the other hand, passenger services grew at a much slower pace of 13 per cent to Sh1.28 billion.

Despite a spike in gains, the revenue is significantly low given China Communications Construction Company, the operator, requires an estimated Sh1.5 billion a month (Sh18 billion annually) to operate the railway line.

Although Kenya Railways had budgeted to earn some Sh24 billion from the cargo services between July 2018 and June 2019, the state body fell 65.56 per cent below target with Sh8.4 billion earned.

The SGR is proving to face difficulties in breaking even, as the five year grace period awarded by the China Road and Bridge Corporation came to an end last year forcing the government to go into taxpayer funds to pay back Sh35 billion...

[John Ashworth]

SGR profits rise to Sh8.8 billion from Sh3.7 billion in 2019

The Standard Gauge Railway has recorded a rise in profits by 135%to hit Sh8.82 billion.

Kenya National Bureau of Statistics data shows that the rise in profits from Sh3.74 billion in 2018 was majorly driven by an increase in freight hauling under the review period, between January to September 2019.

The passenger services revenue totaled up to Sh1.3 billion from Sh1.1 billion that was recorded in 2018.

The SGR freight services rose from Sh2.6 billion to reach Sh7.5 billion as of September 2019...