Kenya Railways is set to resume Madaraka Express passenger services on the Standard Gauge Railway (SGR). This follows President Uhuru Kenyatta’s announcement on the easing of restrictions on movement in three counties; Nairobi, Mandera, and Mombasa.
Philip Mainga, Managing director, says that Kenya Railways will work in conjunction with the Ministry of Transport, and the SGR Operator, Africa Star Railway Company, to release a new operational schedule. This will also see the link train, which operates between Nairobi Central Railway Station and the Nairobi Terminus, resume operations.
The Madaraka express on SGR operates between Nairobi and Mombasa ferrying passengers. Africa Star resorted to ferrying cargo as restriction on movement meant plummeting revenues. This was achieved through redeployment of signaling staff, rolling stock, locomotive, and track to the freight services to ensure uninterrupted operations.
READ ALSO: Kenya Makes U-turn on SGR Directive
Mounting Woes
Kenya Railways has faced mounting woes in recent times. In late June 2020, the Court of Appeal ruled that the SGR contract is illegal citing Kenya Railways’ reluctance to follow set procurement laws.
In addition, during the Budget2020 reading, Treasury CS Ukur Yattani revealed that pending bills arising from the operations of the Standard Gauge Railway (SGR) have accumulated to KSh38 billion.
Moreover, Kenya Railways slashed SGR cargo tariffs for 90 days effective 2nd June 2020 in a move meant to woo importers and make the Naivasha ICD viable. Freight charges were reduced from $600 to $480 for a 20-foot container and from $850 to $680 for a 40-foot container.
The SGR franchise is expected to experience a sharp slump in revenues following the suspension of the requirement for all inbound cargo to be transported via SGR. The government suspended the directive following strong opposition from regional economies that depend on Mombasa port for cargo imports.
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