Buses Record Major Losses After SGR Launch

The recent launch of the Standard Gauge Railway has led to various reactions from members of the public.

While some lauded the project as a landmark achievement, others were quick to point out its shortcomings.

Leaders allied to the Opposition questioned the amount of money used saying it was Sh100 Billion more than what had been projected earlier but the biggest losers are bus companies.

Ordinarily, a trip from the Nairobi Central Business District to Mombasa by bus would cost you roughly Sh1,200.

Considering an average bus has a capacity of roughly 45 people, that means a one-way trip (8 hours) would fetch Sh54,000.

According to the Kenya Railways, between last week Thursday, after the SGR was launched and this week, the number of travellers had hit 7,000. That multiplied by the Sh700 minimum fare translates to Sh 4.9 Million in just under a week.

While this is a win for the SGR, it is a major loss for bus companies which enjoyed profits for the longest time possible.

One SGR train has a capacity of 1200 people, that's 26 times the capacity of a bus, meaning if the train is fully booked, roughly 26 buses will be locked out of business per trip.

Most bus companies have complained of low passenger turnout as many people opt to use 4 hours to travel to Mombasa, which is half the time used by buses.

Though the government had assured bus owners that their business was safe, the reality is slowly checking in and most of them are thinking of other alternatives.

Buses remain a convenient alternative due to their flexibility in terms of travelling hours but it seems the industry is set to take a hard knock for the foreseeable future.