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SGR empty seats order signals ticket price rise
Jul 9, 2020
The standard gauge railway (SGR) passenger train services will resume Monday at a reduced capacity, raising the possibility of a rise in fares to compensate the Chinese operator.
Transport Cabinet Secretary James Macharia said Wednesday that the passenger service will keep half of the seats empty under the social distancing rules imposed to curb the spread of the coronavirus in the country.
This will put pressure on Kenya Railways to increase fares in a bid to raise revenues needed to pay the operator — China Communications Construction Company — or increase State subsidies.
The revenues from the SGR service have not been enough to meet the operation costs, which are estimated at Sh1.5 billion a month or Sh18 billion a year.
“Increase in passenger fare on Madaraka Express train are operational matters that will be determined by the operator. We will, however, give special preference to passengers who had booked tickets before suspension of services when we resume operations,” said Mr Macharia.
Currently, the SGR service charges Sh1,000 for economy class tickets and Sh3,000 for first class tickets between Nairobi and the coastal city of Mombasa.
Operations of the Madaraka Express passenger and cargo trains risk being grounded over Sh38 billion in unpaid bills, underlining the push for the service to generate more internal revenues.
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