Madaraka Express: More Kenyans Turn To SGR To Cope With High Bus Fare, Costly Fuel

• The number of passengers using the Standard Gauge Railway (SGR) rose from 518,780 to 597,506 in the first quarter of 2023
• During the period, Madaraka Express's revenue soared from $3.9 million (KSh 564 million) to $4.58 million (KSh 662.3 million)
• This came as Kenyan long-distance bus companies hiked fares after EPRA increased the cost of fuel

The number of passengers using the Madaraka Express train has increased by 15.2%.

How many passengers used Madaraka Express?

According to data by the Kenya Railways, the number of passengers using the Standard Gauge Railway (SGR) rose from 518,780 to 597,506 in the first quarter of 2023.

As a result of the increase in passenger traffic, the Madaraka Express's revenue soared from $3.9 million (KSh 564 million) to $4.58 million (KSh 662.3 million), China.org noted.

Xinhua News Agency reported travellers had resorted to train services due to reliability, affordability, and speed while travelling to and fro Mombasa and Nairobi.

Passenger tickets from Nairobi to Mombasa on economy class cost KSh 1,000, while the business class costs KSh 3,000.

Why long-distance bus companies hiked fare

The shift to Madaraka Express came after Kenyan long-distance bus companies hiked fares due to the high fuel costs.

The Energy and Petroleum Regulatory Authority (EPRA) increased pump prices following the introduction of a 16% Value Added Tax (VAT) on petroleum products.

Easy Coach Ltd, for instance, revised maximum route fares up by KSh 100, effective August 1, 2023, to incorporate the changes in pump prices.

"As a result of the recent increase in the fuel Value Added Tax (VAT), we are obliged to incorporate this adjustment into our fare rates. The fare for all our routes will be adjusted upwards by KSh 100," the bus company announced.

At the same time, other long-distance bus companies reviewed their fare charges to offset the rising fuel cost.

Bus companies operating between Nairobi, Wajir and Mandera increased their bus fare to a maximum of KSh 5,000.

Fares from Nairobi to Wargadudo, Rhamu and Mandera will range from KSh 5,000 while Nairobi to Kutulo and Elwak at KSh 4,000.

Matatu operators increase fares

Elsewhere, the Matatu Owners Association umbrella body announced a 10 to 20% increase in fares, effective Wednesday, July 5.

The operators further said the adjustment will help them stay afloat.

"Effective Wednesday, July 5, 2023, passengers can expect a moderate increase of between KSh 30 of the current fare charge across the various routes, including town service and long-distance travellers," said chairman of Matatu Owners Association Albert Karakacha.