When Kenya Railways Expects To Take Over SGR Operations From Chinese Company

March 16, 2023

Kenya Railways says it is on course to fully take over Standard Gauge Railways (SGR) operations from AfriStar, a subsidiary of the China Road and Bridge Company.

Kenya Railways Managing Director Phillip Mainga on Wednesday, March 15, said the corporation has thus far completed a 90 percent takeover.

Appearing before the Public Investment Committee on Commercial Affairs and Energy, Mr Mainga said they expect o take full operations by 2024.

“We have taken over the operations of SGR we are now at 90 percent. In terms of the operations, we believe that in the next financial year, we will have a comfortable report,” the MD said.

Mr Mainga also informed the committee that Kenya Railways had shown prospects of recovering from perennial losses.

He said the corporation’s losses dropped to Sh4 billion in the 2022/2023 financial year, from Sh9.8b the previous year when the company was struggling with high operating costs.

Mainga also informed the MPs that 90% of our Kenya Railways revenue is from cargo and 10% from passengers with 2.3 million passengers travelling by Railway yearly.

He also defended the economic viability of the Nairobi Commuter Railway.

“Railway service in most developed and developing countries is a socio-responsibility mandate. If we charge prices similar to those of market rates, then the commuter of Kibera, Dandora and Pipeline settlements won’t be able to afford them,” he said.

Don't Miss