The number of people using the Standard Gauge Railway (SGR) trains between January and March this year dropped to 529,591, marking the third straight year of declining passenger numbers. However, despite the dip in travellers, revenue from ticket sales rose to Sh936.29 million, boosted by a recent hike in fares.

An analysis of official data shows that the latest figures were lower than the 531,673 passengers recorded during the same period in 2024 and the 597,506 passengers in the first three months of 2023.

The last time passenger traffic fell below the current numbers was in 2022, when only 518,780 people used the service, earning Sh569.27 million.

The increased revenue this year was driven by a fare adjustment that took effect in January.

The Kenya Railways Corporation (KRC) doubled ticket prices for the Nairobi–Mombasa route, with first-class tickets rising to Sh4,500 from Sh3,000, while economy class tickets went up to Sh1,500 from Sh1,000.

KRC said the decision to increase prices was due to the rising cost of fuel. But the higher fares have weakened the appeal of the train service to many Kenyans who are already struggling under tough economic conditions.

The revised rates now apply to both the express and inter-county services connecting Nairobi and Mombasa.

Even so, the higher prices have played a key role in keeping revenue steady at a time when questions persist over when the SGR will start making enough money to support its operations without needing help from the National Treasury.

In 2021, for instance, the Treasury used Sh18.1 billion from the Petroleum Development Levy,money collected from motorists, to pay Africa Star Railway Operation Company, the Chinese firm managing the SGR.

The move was criticised as illegal and exposed the pressure the railway has put on taxpayers.

Apart from the huge cost of running both passenger and cargo services, the SGR has also failed to generate enough income to repay the heavy loans taken to build it.

Kenya borrowed $5.08 billion (about Sh656.28 billion at today’s exchange rates) from China to fund the construction of the line, as well as purchase trains and coaches. The repayment of the loan began in 2020 after the expiry of a five-year grace period.

Kenya is now seeking more Chinese funding amounting to Sh502.9 billion—to complete the next phase of the railway, extending it from Naivasha to Kisumu and eventually to Malaba at the Kenya–Uganda border.

The expansion is seen as essential to create a continuous rail link between Kenya and Uganda and improve transport of goods and passengers between the two countries.