Kenya Standard Gauge Railway posted its strongest revenue growth in years after earning KSh15.9 billion in the first nine months of 2025, a 19.96% surge from the same period last year, latest figures from Kenya National Bureau of Statistics showed.
Freight drives sharp rise
The increase was driven largely by freight traffic, with cargo revenue rising 21.6% to KSh12.6 billion. Total cargo hauled on the Mombasa-Nairobi-Naivasha corridor grew 13.6% to 5.4 million tonnes.
Importers have shifted to rail because of reliable schedules, near-zero theft and tougher penalties for containers that linger at the port when moved by road.
“Trains leave on schedule and arrive on schedule. That predictability is worth paying for,” said Peter Mwaura, a Nairobi-based clearing agent who has moved most clients to Standard Gauge Railway in the past two years.
Passenger traffic rebounds
Passenger numbers on Madaraka Express recovered after a slump triggered by January 2024 fare increases that raised economy tickets from KSh1,000 to KSh1,500 and first-class from KSh3,000 to KSh4,500 on the Nairobi-Mombasa route.
The railway carried 1.9 million passengers in the nine months, a 6.5% rise that generated KSh3.3 billion in ticket sales – up 14.2%.
Relief for debt-laden project
The stronger financial performance gives breathing space to an infrastructure project built with more than USD5 billion in mostly Chinese loans and launched in 2017 amid high expectations.
Debt repayment started in January 2020 after a five-year grace period. Revenues have consistently fallen short of loan-servicing needs, forcing Kenya Railways Corporation to rely on Treasury bailouts.
Freight still accounts for almost 80% of total revenue. Kenya Railways continues to push higher volumes on the existing line and reconnect upcountry depots through the older metre-gauge network.
Extension talks ongoing
Nairobi is negotiating fresh Chinese funding for a USD5 billion extension from Naivasha through Kisumu to Malaba on the Uganda border. Discussions have dragged on for years over costs and route alignment, but officials maintain the project remains a priority.
The near-20% revenue jump is being cited as evidence that the railway, once labelled a white elephant, is gaining commercial traction.
“The numbers speak for themselves,” a senior Kenya Railways official told Newsroom.co.ke on condition of anonymity. “Give it stable policy and consistent cargo, and the SGR can stand on its own.”
