As the December-New Year holidays approach, many city dwellers are smitten by wanderlust and a desire for life away from the humdrum of the daily grind.
From families taking a break from the hustle and bustle of the city to backpackers and flash packers escaping to holiday destinations, reliable transport comes in handy.
During this period, the Standard Gauge Railway is the most-sought after means mainly to Coast, thanks to its convenience and capacity to move masses.
Both the passenger service and freight trains play a critical role in the country’s tourism, international trade and industrialisation.
The Mombasa-Nairobi SGR line, completed in 2017, was built as the first phase at an estimated cost of Sh327 billion, before the project was extended to Suswa (Naivasha).
It is a flagship project by the government developed as a transport component of Vision 2030, which aims to make Kenya a middle-income country by then.
The China Road and Bridge Corporation, which was behind the construction and operations, has so far transferred more than 90 per cent of the operations of the Mombasa-Nairobi SGR to Kenya Railways Corporation, the country’s national railway, and expects to complete the handover next year.
In the last five years, the SGR passenger service, christened ‘Madaraka Express’, has moved more than 10 million people between Nairobi and Mombasa, official data shows, standing out as the biggest public transport mode between the two cities.
FULLY BOOKED
SGR has generated in excess of Sh11 billion in revenue, data by the Kenya National Bureau of Statistics indicates.
“The number of passengers via SGR rose by 14.1 per cent from 2,392 thousand in 2022 to 2,729 thousand in 2023, partly due to the increased use of SGR during the holiday seasons,” KNBS said in its Economic Survey 2024.
This year is no different as trends show it will be fully booked over the festive period, cementing its position as Kenya’s biggest public transport mode.
With a network of routes covering Suswa, Nairobi, Athi River, Emali, Kibwezi, Mtito Andei, Voi, Maisenyi, Mariakani and fi nally Mombasa, a voyage via SGR takes one to a diverse range of destinations, each offering unique charm and allure. “
The Standard Gauge Railway is a great development with super connection to Tsavo West and East at Voi and from Miritini to South Coast through the new Dongo Kundu Bypass,” Kenya Association of Tour Operators chairman Fred Odek told the Star.
“This is a big boost to tourism logistics and offers a unique experience for tourists to enjoy travel between Nairobi and Mombasa.”
From beach hotels, Air bnbs to small budget hotels, everyone is angling themselves for business, with hoteliers at the Coast predicting 100 per cent occupancy in December.
This is for facilities in Mombasa, Diani and parts of Kilifi , as the globally acknowledged Coast region remains the country’s leading beach holiday destination.
To ensure travellers’ convenience, hotels have developed packages that include transfers from the SGR terminals, with hotels in Amboseli National Park and the wider Tsavo also reaping big.
“It is very convenient to come by rail to Voi town then get picked to the final destination, which is the hotel deep in the Tsavo,” Michael Mwatsefu, who was leading a team building in one of the hotels, said.
Traversing through two of the country’s major national parks of Amboseli and Tsavo, SGR was once named among the most remarkable rails to tour in the world in a survey by British paper the Daily Telegraph.
The Amboseli Serena Safari Lodge, which gives a majestic view of Mt Kilimanjaro, and Kilaguni Safari Lodge were cited as some of the best places to visit for those using the Madaraka Express.
TOURISM DRIVER
The multibillion-shilling rail investment has since cemented its place as a key driver of the country’s tourism industry.
This is mainly domestic tourist flow to the Coast, which has more than 900 beach hotels and resorts spread across the 536km coastline.
Odek said the recent addition of the premium service is a good touch for the high-end traveller.
The China-backed SGR investment has also revived economic activities in small towns between Nairobi and Mombasa, including Emali, Kibwezi, Mtito Andei, Voi and Mariakani.
“Things have never been the same again since the SGR came. From taxis to boda bodas, we are always busy. It has given us a sustainable source of income,” Samuel Muthee, a boda boda operator at Voi, said.
The Coast has reported the highest bookings during this year’s festive period, with current average hotel occupancy in the region having already hit 85 per cent, coming with the closure of schools.
“In December, we expect a full house due to the high number of inquiries,” Hillary Siele, a board member of the Kenya Coast Tourist Association said.
“The current occupancy is 60 per cent domestic and 40 per cent international.”
The Kenya Association of Hotelkeepers and Caterers has also indicated this year’s performance is expected to reach a new peak in post-Covid era as the industry fully recovers, with the Coast being a major destination.
“This year has been busy all round, so we expect very high occupancy during the holidays,” KAHC chief executive Mike Macharia said.
Traditionally, the domestic market has been the main driver of the December tourism season, with international arrivals picking mid-December, when winter starts.
Last year, hotel bed-nights occupancy increased by 23.2 per cent from seven million in 2022 to 8.6 million, the Economic Survey 2024 indicates.
The Tourism Research Institute has projected a stellar performance by the tourism industry.
International tourist arrivals, a key source of foreign exchange, are expected to hit a high of 2.2 million this year with earnings projected to grow to hit Sh359.1 billion up from 352.5 billion last year, before a further surge to Sh396.1 billion next year.
Kenya plans to more than double international tourist arrival in the next five years, where Kenya Tourism Board is seeking to grow the numbers to 5.5 million by 2028, in an ambitious plan that involves the private sector.
INDUSTRIAL GROWTH
SGR freight remains a major player in the country’s industrial growth and international trade, with a strong operation between the Port of Mombasa, Nairobi Inland Container Depot and the Naivasha depot.
The line has catalysed investments in industrial zones in Mariakani, Machakos, Nairobi and Naivasha, while furthering manufacturing activities in the Rift Valley and Western region, thanks to the connection with the Metre Gauge Railway.
This now offers seamless movement of raw materials and finished goods from the port to final destinations and export markets.
“It has had a positive impact directly and indirectly, although it is yet to reach its full potential,” Shippers’ Council of Eastern Africa chief executive Agayo Ogambi said.
“Because of SGR, we have witnessed profound infrastructure development around the ICD.”
A number of godowns, warehouses and private container freight stations have been established. With an average of 12-14 trains per day, importers are able to competitively rail their shipment safely.
“The good news is that the management of Kenya Railways, with the support of government, is putting up measures to enhance rail freight competitiveness, as evidenced by the recent procurement of wagons,” Ogambi said.
“SGR confers hope for a multi-model shift from air to sea and support towards green logistics.”
In the last five years, SGR freight has moved more than 26 million tonnes of cargo, generating more than Sh63 billion in revenues.
According to the Economic Survey 2024, the volume of cargo transported via SGR rose by 7.3 per cent from 6,090 thousand tonnes in 2022 to 6,533 thousand tonnes in 2023.
“This resulted in a corresponding 7.3 per cent rise in revenue from Sh12.7 billion in 2022 to Sh14.7 billion in 2023,” it notes.
This came as cargo throughput at the Port of Mombasa increased from 33.9 million metric tonnes in 2022 to 35.9 million tonnes in 2023.
The volume of cargo transported via MGR increased by 27.2 per cent from 787 thousand tonnes in 2022 to 1,001 thousand tonnes in 2023.
According to KNBS, the increase was partly occasioned by the activation of the SGR Longonot link, which enabled the movement of cargo from Naivasha ICD to the Malaba border point.
Manufacturers in the country have termed the SGR a reliable mode of transport for raw material and finished goods both into the country and exports, even as they call for more effectiveness, efficiency and affordability.
“There was a last-mile connectivity issue that they have sorted. What we are looking at now is quick turnaround time into and out of the port, which is appreciated,” Kenya Association of Manufacturers acting CEO Tobias Alando told the Star on the phone.
INTERNATIONAL TRADE
The SGR-MGR connection is seen as a game changer in growing industries in the Rift Valley, Western Kenya and Nyanza, while boosting trade in the region that comes with the revival of the Lake Victoria transport network and Kisumu Port.
Kenya Railways is also investing heavily in refrigerated containers (reefer containers) as it angles to move fresh produce and other agricultural products for export.
The shift is pegged on Kenya’s ambitious “green” plan to move up to 50 per cent of its horticulture produce, mainly flowers, to the export markets by sea freight, with Europe as the main target.
Other major exports by sea include avocados, macadamia and the traditional tea and coffee exports.
Kenya Railways managing director Philip Mainga said SGR freight is offering volume discounts of five to 15 per cent and upwards.
This is to importers and exporters who have entered into transport agreements with the corporation that guarantee volumes.
“Moving cargo by rail takes eight hours from Mombasa to Nairobi and 10 hours to Naivasha, which is more convenient than roads, which have delays due to traffic,” Mainga said.
Horticulture volumes are expected to boost SGR freight operations and earnings as sector players move more cargo to sea freight, a plan that has received the backing of the European Union.
Kenya Flower Council CEO Clement Tulezi said the goal is to ship 50 per cent of Kenyan flower exports by sea in seven years.
With avocados and mangoes also being shipped via sea, it assures Kenya Railways of volumes.
The Fresh Produce Consortium of Kenya has noted that SGR and sea freight will help cut freight costs by 40 to 50 per cent, compared to what exporters are spending on air.
“It is going to cut costs, reduce wear-and-tear on roads and cut transit time,” the consortium’s CEO Okisegere Ojepat said.
“We are also seeing a situation of more loads on one rail trip and a reduction of trucks on our roads.”
The EU, which is Kenya’s biggest
export market for flowers and other horticultural produces, has been
keen on supporting the country’s
shift to green and sustainable transportation of exports.
