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Kenya announced a sharp increase in passenger fares on the Chinese-built Standard Gauge Railway. Presently, the country struggles with repaying loans owed to Beijing and others along with higher fuel prices
Kenya announced a sharp increase in passenger fares on the Chinese-built Standard Gauge Railway. Presently, the country struggles with repaying loans owed to Beijing and others along with higher fuel prices.
State-owned Kenya Railways said that the 470-kilometer (290-mile) journey between the port city of Mombasa and the capital, Nairobi, will cost around US$30 in first class, up from US$19, and US$10 in economy, up from US$6. Kenya Railways attributed the reasons for the increase to global reasons.
The announcement came days after Kenya’s central bank governor, Kamau Thugge, said the Kenyan shilling had for years been overvalued by 25%. He alluded to maintaining an artificially strong exchange rate. Two weeks ago President William Ruto was in China, where he sought a US$1 billion loan to finish stalled infrastructure projects despite Kenya’s overall debts at a record US$70 billion.
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The new train fares come into effect on Jan. 1, 2024. The changes will also affect the popular commuter rail service in the capital, Nairobi, as well as the Kisumu and Nanyuki safari trains that attract thousands of tourists each year. The Standard Gauge Railway, or SGR, which cost US$4.7 billion borrowed from Chinese banks, started operations in 2017 but has struggled with low uptake of its cargo services. Ruto has faced criticism from Kenyans over his foreign travels, with 38 trips since his inauguration in September 2022. That’s more than any of his four predecessors in their first year in office.
