Former Kenyatta International Convention Centre (KICC) chairperson Irungu Nyakera has suggested that the Standard Gauge Railway (SGR) be renamed with a local name like Uhuru Rail to localise it and make it more profitable.
Since its construction, the SGR has been a transformative infrastructural project linking Nairobi and Mombasa while facilitating cargo transport across the country.
However, over the years, concerns have been raised over its performance, profitability, and viability to the country.
Recent reports indicated a decline in passenger numbers, prompting discussions on how to make it more efficient, profitable, and more Kenyan.
According to the latest data from the Kenya National Bureau of Statistics (KNBS), SGR passengers dropped by 282,000 last year compared to 2023. Cargo transport via SGR also saw a slight decline, with freight volume dropping from 6,533,000 tonnes in 2023 to 6,531,000 tonnes in 2024.
These declines led to a 50 per cent fare hike introduced in January 2024, which saw economy-class tickets rise from Ksh1,000 to Ksh1,500, and first-class fares jump from Ksh3,000 to Ksh4,500.
Following these developments, Nyakera listed 10 key steps Kenya can implement to improve SGR's performance. Among them is renegotiating SGR loan terms to extend repayment periods and lower interest rates.
Other critical recommendations he has made include the localisation of operations, ensuring that more Kenyan professionals are hired to manage and maintain the railway, switching from diesel to electric trains, and allowing trains to double-stack (carry an extra container on top), like other modern railways, to increase capacity.
He also suggested completing the Naivasha–Kampala line and prioritising the development of Kisumu Port, incentivising cargo from Mombasa by giving businesses tax or cost incentives to move cargo by rail instead of trucks, and building loading stations and dry ports next to industries to allow manufacturers to ship directly via SGR.
Nyakera also suggested growing the passenger services between major cities, allowing licensed private players like cement companies, logistics firms, and agri-exporters to run their own trains on the SGR, and renaming it with a local name.
According to Nyakera, renaming SGR to a new name like Uhuru Rail or KenRail will give it a Kenyan identity, making Kenyans own it more and reinforcing it as a national asset.
Nyakera believes that with these changes, SGR could reverse its passenger decline, improve cargo efficiency, and solidify its role as a cornerstone of national development
