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The Kenya Railways Corporation has experienced a notable decrease in Standard Gauge Railway (SGR) passenger volumes for the first half of 2024.
This comes on the back of a 50% fare increase introduced at the beginning of the year, driven by higher operational costs largely attributed to fuel price hikes.
Passenger Volumes Down
Data from the Kenya National Bureau of Statistics shows that between January and June 2024, the SGR carried 1,128,782 passengers, a significant drop compared to the 1,249,805 passengers transported over the same period in 2023.
This represents a 9.68% decrease in passenger volume. The reduction aligns with the fare adjustments, which increased the cost of an economy ticket between Nairobi and Mombasa from Sh1,000 to Sh1,500 and first-class tickets from Sh3,000 to Sh4,500.
Revenue Increase
Despite the dip in passenger numbers, SGR revenues soared during the first half of 2024. Total revenue for the period amounted to Sh1,766,997,580, a 27.19% increase from Sh1,389,275,803 collected in the same period in 2023.
This revenue surge highlights the impact of the fare hikes implemented on January 1, 2024.
On a per-passenger basis, the average revenue in 2024 was Sh1,565.73, up from Sh1,111.09 in 2023, indicating a 40.91% increase in the cost borne by passengers.
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| Month | Passenger Volume 2023 | Passenger Volume 2024 | Revenue 2023 (Sh) | Revenue 2024 (Sh) |
|---|---|---|---|---|
| January | 247,011 | 231,784 | 261,959,811 | 312,443,190 |
| February | 163,016 | 167,897 | 185,441,748 | 270,396,355 |
| March | 187,479 | 183,654 | 212,753,724 | 297,978,910 |
| April | 239,685 | 196,875 | 251,425,841 | 299,907,810 |
| May | 214,050 | 176,950 | 234,581,352 | 279,275,780 |
| June | 198,564 | 171,622 | 243,113,327 | 306,995,535 |
| Total | 1,249,805 | 1,128,782 | 1,389,275,803 | 1,766,997,580 |
Freight Volumes and Revenue
The freight sector, too, saw a drop in volume but experienced a revenue boost.
In the first half of 2024, 3,046,632 tonnes of cargo were moved, a significant drop from the 6,533,027 tonnes transported during the same period in 2023.
However, despite the 53.38% drop in tonnage, the total revenue from freight services jumped to Sh6,704,644,243 in 2024, compared to Sh14,684,563,147 in 2023, reflecting the overall trends in the SGR operations.