The Standard Gauge Railway (SGR) is navigating a rough patch, reporting a Sh144 million revenue drop between August and September 2024 as passenger numbers and cargo volumes took a hit.

Fresh figures from the Kenya National Bureau of Statistics (KNBS) paint a mixed picture of the railway’s operations.

Passenger numbers tumbled by over 105,000, falling from 281,683 in August to 175,901 in September, dragging revenue from Sh440.6 million to Sh296.4 million.

Despite these short-term setbacks, the SGR’s year-to-date performance remains robust.

The "Leading Economic Indicators" report released on November 15, 2024, revealed that passenger revenue climbed to Sh2.9 billion between January and September 2024, marking a Sh770 million increase from Sh2.1 billion over the same period in 2023.

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A closer look at the numbers reveals that July was a standout month, recording 192,768 passengers, narrowly edging out January’s 192,376.

KNBS attributed July’s success to SGR’s reputation for "reliability, affordability, and its efficiency in transporting heavy loads compared to the Meter Gauge Railway (MGR)."

However, not all months told the same story. February, April, May, and September struggled with the lowest passenger counts, significantly impacting monthly revenues.

Meanwhile, April, July, and August emerged as top revenue earners, contributing Sh385 million, Sh319 million, and Sh440 million, respectively, while February and May posted the weakest figures.

Cargo operations also faced challenges. The railway’s freight service saw volumes dip from 582,000 metric tonnes in August to 512,500 metric tonnes in September.

Yet, in an unexpected twist, cargo revenue edged up slightly to Sh1.2 billion, showcasing the resilience of this critical arm of SGR’s operations.

The turbulence comes on the heels of a semi-annual performance report from September, which had flagged a passenger slump of 121,000 between January and June compared to 2023.

Even then, January emerged as a beacon of strength, while February, April, and May lagged.

While SGR has consistently demonstrated its ability to drive revenue from both passenger and cargo services, the recent dips in performance signal the need for targeted interventions.

Sustained growth will require balancing operational efficiency with strategies to counter unpredictable passenger flows and cargo volumes, ensuring Kenya’s flagship railway project stays on track.