In the upcoming financial year starting on 1st July, the Standard Gauge Railway (SGR) is set to receive Sh901 million from the government’s budget.

This allocation is intended to finalise the passenger ticketing system and implement an integrated security management system.

The National Assembly's Budget Committee reported that the operations and maintenance of the standard gauge railway had been allocated Sh901 million from the Railway Development Fund. 

"The operations and maintenance of the standard gauge railway has been allocated Sh901 million from the Railway Development Fund for an integrated security management system and completion of the passenger ticketing system," the Committee announced.

Despite this funding, specifics of the ticketing and security projects remain undisclosed.

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Kenya Railways Corporation, the agency responsible for the SGR, had not provided any responses regarding these developments at the time of publication.

"This (allocation) implies that the standard gauge railway is supported by the taxpayer, which is an indication that the project is struggling to break even six years after the operationalisation of the passenger and freight services," the budget committee added.

Since its inauguration in 2017 until the end of the last year, the SGR has accrued Sh79.72 billion in revenue. Freight services have been the dominant revenue source, contributing 84 per cent, or Sh67.09 billion, of the total earnings.

Despite these financial inflows, the railway has yet to achieve operational self-sufficiency and has not commenced repayment of the loan secured from the Exim Bank of China by the Treasury.


The continuous financial support from the exchequer highlights the challenges the SGR faces in reaching financial independence and underlines its reliance on public funding to maintain and enhance its operations.