SGR profits rise to Sh8.8 billion from Sh3.7 billion in 2019January 17, 2020
NAIROBI, Kenya, Jan 17 – The Standard Gauge Railway has recorded a rise in profits by 135%to hit Sh8.82 billion.
Kenya National Bureau of Statistics data shows that the rise in profits from Sh3.74 billion in 2018 was majorly driven by an increase in freight hauling under the review period, between January to September 2019.
The passenger services revenue totaled up to Sh1.3 billion from Sh1.1 billion that was recorded in 2018.
The SGR freight services rose from Sh2.6 billion to reach Sh7.5 billion as of September 2019.
The revenues, however, missed the initial target of Sh1.5 billion a month that was set by the China Communications Construction Company.
Kenya borrowed China Exim Bank Sh324 billion for the construction of the SGR project in May 2014, which is to be repaid in 15 years, giving Kenya a grace period of five years.
The KNBS data also reveals that the number of imports also rose to hit Sh159 million from 153 million that was registered between November 2018-November 2019.
The slight rise in earnings was majorly driven by Industrial supplies such as machinery, manufacturing plants, raw materials that stood at Sh48.5 million in 2019 as compared to Sh47.7 million recorded in 2018.
The imports majorly originated from China having traded goods that were worth Sh37 million as of November 2019.
The United Arab Emirates imported goods into Kenya that were worth Sh18 million during the review period between January-December 2019.
The share of foods and beverages Imports accounted for 9.64 percent of the total imports.
Also, the quantity of coffee exported decreased from Sh1.4 million to Sh1.2 million from November 2019-December 2019.
The quantity of tea exported de-creased from in November 2019 with its value dropping from Sh11 million to Sh10.7 million under the review period.