The Standard Gauge Railway (SGR) recorded its first operating profit since launching in 2017, posting Ksh3.2 billion in the 2025/26 financial year.
Kenya Railways attributed the turnaround to record cargo volumes, improved operational efficiency, enhanced cargo evacuation at the Port of Mombasa, and stronger customer engagement.
During the year, the SGR transported 8.2 million tonnes of freight, the highest volume recorded since operations began, up from 7.04 million tonnes in 2024/25.
The railway generated Ksh21.8 billion in revenue, accounting for 84% of KRC’s operating income, while operating expenditure rose marginally to Ksh18.52 billion.
KRC Managing Director Philip Mainga attributed the performance to government interventions and increased freight train operations, which rose to 9.67 train pairs daily. He also revealed that KRC has now fully taken over SGR operations from Chinese operator Afristar.
The Ksh327 billion Mombasa-Nairobi SGR and the Ksh150 billion Nairobi-Naivasha extension had previously faced criticism over persistent losses, with operating costs exceeding revenues for several years after launch.
