SGR records Sh144 million revenue loss in two months as passenger numbers decline
By Lucy Mumbi |
Despite this reduction in volume, revenue from cargo transport saw a slight increase, reaching Sh1.2 billion during the same period.
The standard gauge railway (SGR) has recorded a decline in both passenger numbers and revenue, losing Sh144 million between August and September 2024.
According to a report by the Kenya National Bureau of Statistics (KNBS), passenger numbers dropped from 281,683 in August to 175,901 in September, a decrease of 105,782 passengers.
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Consequently, revenue from passenger services fell from Sh440.6 million in August to Sh296.4 million in September.
Despite this setback, the "Leading Economic Indicators" report released on November 15 notes that SGR’s overall revenue from passenger services saw an increase of Sh770 million between January and September 2024, reaching Sh2.9 billion compared to Sh2.1 billion during the same period in 2023.
The report also highlighted July as the best-performing month for passenger numbers in 2024, with 192,768 travellers. It was followed closely by January, which saw 192,376 passengers.
“The strong performance in July was attributed to SGR’s reputation for reliability, affordability, and its capacity to transport heavy loads more efficiently than the older Meter Gauge Railway (MGR),” reads the report.
On the other hand, February, April, May, and September recorded the lowest passenger numbers, which significantly impacted the overall performance.
It adds that the highest revenue figures were generated in April, July, and August, amounting to Sh385 million, Sh319 million, and Sh440 million, respectively, while February and May saw the least revenue.
The report also noted a decline in cargo volumes transported by SGR, which fell from 582,000 metric tons in August to 512,500 metric tons in September.
Despite this reduction in volume, revenue from cargo transport saw a slight increase, reaching Sh1.2 billion during the same period.
The findings follow the SGR’s semi-annual performance report released in September, which indicated a passenger decline of 121,000 between January and June 2024 compared to the same period in 2023.
January emerged as the strongest month for passenger numbers, while February, April, and May recorded the lowest figures.
The recent decline in passenger numbers and cargo volumes poses challenges for the SGR, particularly as it seeks to sustain strong financial performance.
Although the railway continues to generate substantial revenue from passenger and cargo services, fluctuating numbers and a drop in cargo volumes may require targeted measures to ensure steady growth.
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