NAIROBI, Kenya – Revenue from passenger services on the Standard Gauge Railway (SGR) crossed the Sh2 billion mark in the first six months of 2025, boosted by rising passenger numbers and last year’s fare hikes.
Data from Kenya Railways Corporation (KRC) shows that the Madaraka Express generated Sh2.07 billion between January and June, an 11.6 per cent jump from Sh1.85 billion over the same period in 2024.
The surge was supported by a rebound in traffic, with 1.18 million passengers boarding the trains, up from 1.12 million in the first half of last year.
The recovery comes after passenger numbers dipped in 2024 when ticket prices were raised sharply.
The fare adjustments, introduced on January 1, 2024, saw first-class tickets rise from Sh3,000 to Sh4,500 on the Nairobi–Mombasa route, while economy fares went up from Sh1,000 to Sh1,500.
KRC defended the move, citing soaring fuel costs for both inter-county and express services.
Although the increases initially triggered a backlash and pushed some travellers back to road transport, the latest data suggests that demand is stabilising.
“The higher charges were necessary to meet the rising cost of operations, particularly fuel,” KRC said in a statement, adding that the revenue growth would reduce reliance on Treasury bailouts.
For years, the government has propped up SGR operations with subsidies, even as Kenya struggles to repay the multi-billion-shilling loans borrowed from China to build the railway.
The new earnings, while covering day-to-day costs, are still insufficient to offset debt obligations, including payments to Africa Star Railway Operation Company Limited, the Chinese operator running the service since 2017.
The revival in passenger numbers comes at a critical time, with the SGR preparing for extension from Naivasha to Malaba.
The expansion is expected to increase passenger uptake and freight movement, strengthening revenue streams in the long term.
