The Kenya National Bureau of Statistics (KNBS) has reported a significant drop in passengers using the Standard Gauge Railway (SGR), resulting in a revenue loss of Ksh 144 million over two months.
According to the Leading Economic Indicators report released on November 15, the number of passengers traveling via SGR declined sharply from 281,683 in August to 175,901 in September 2024, a decrease of 105,782 passengers. This decline caused SGR’s revenue to fall from Ksh 440.6 million in August to Ksh 296.4 million in September.
The cumulative passenger count between January and September this year was 171,803 fewer than during the same period in 2023, when SGR served 1,779,134 passengers. Despite this, SGR recorded an overall revenue increase of Ksh 770 million for the year so far, compared to 2023, largely driven by strong performance in select months.
Highs and Lows of Passenger Traffic:
July emerged as the best-performing month in 2024, with 192,768 passengers, followed closely by January with 192,376 passengers. The service’s reliability, speed, and ability to handle heavy loads contributed to higher demand during these months.
Conversely, February, April, May, and September recorded the lowest passenger numbers, dampening overall performance.
Cargo Transport Performance:
In addition to passenger declines, the volume of cargo transported via SGR also decreased, dropping from 582,000 metric tons in August to 512,500 metric tons in September. However, cargo revenue increased slightly, reaching Ksh 1.2 billion during the same period, highlighting a shift in revenue reliance.
Broader Trends:
This report comes shortly after KNBS released the SGR's semi-annual performance report in September, which showed a decline of 121,000 passengers between January and June compared to the same period in 2023. While passenger numbers fluctuated, revenue gains in months like April, July, and August helped mitigate some losses.
The latest data underscores the challenges SGR faces in maintaining consistent passenger growth while exploring new revenue opportunities in cargo transport.