NAIROBI, Kenya — Standard Gauge Railway (SGR) recorded an operating profit of Sh3.2 billion ($24.7 million) in the 2025/2026 financial year, marking a significant turnaround for the railway service.
Kenya Railways Corporation Managing Director Philip Mainga attributed the performance to increased cargo volumes, improved operational efficiency, faster freight clearance at the Port of Mombasa and stronger engagement with customers.
The performance was driven largely by growth in freight transported through the Chinese-built railway, with cargo volumes reaching a record level during the financial year.
SGR Freight Volumes Hit Record 8.2 Million Tonnes
According to Mainga, freight volumes transported through the SGR increased to 8.2 million tonnes, up from 7.04 million tonnes recorded in the previous financial year.
The higher cargo volumes generated approximately $168.4 million (about Sh21.8 billion) in revenue, strengthening the railway’s contribution to Kenya’s transport and logistics sector.
Mainga, speaking to Business Daily on Wednesday, said improved efficiency across the railway and associated logistics operations had helped enhance the SGR’s financial performance.
Faster clearance of cargo at the Port of Mombasa also contributed to the increase in freight volumes by improving the movement of goods from the port to inland destinations.
Passenger Numbers Also Rise
The SGR also recorded growth in passenger traffic.
Data from the Kenya National Bureau of Statistics (KNBS) showed that passenger numbers increased to 2.73 million in 2025, compared with 2.44 million the previous year.
The increase points to continued demand for passenger rail services, particularly on the Mombasa-Nairobi corridor.
The growth in both passenger and freight traffic has strengthened the railway’s role in Kenya’s transport network.
Railway Supports Economic Transformation
The improved financial performance comes as Kenya continues to position rail transport as a key component of its logistics and economic development strategy.
The SGR provides a direct rail link between the Port of Mombasa and Nairobi, facilitating the movement of cargo while offering an alternative to road transportation.
The increase in freight volumes also highlights the railway’s growing role in supporting trade through the Port of Mombasa and connecting the port to inland markets.
Kenya Railways said the combination of higher cargo and passenger traffic, operational improvements and enhanced customer engagement had contributed to the SGR’s latest performance.
With freight volumes reaching record levels and passenger numbers continuing to rise, the SGR remains an important component of Kenya’s transport infrastructure and broader economic transformation agenda.
