SGR Isn't a Matatu: Deputy President William Ruto Justifies Sh1 Billion Monthly Operation Cost for Madaraka Express
Deputy President William Ruto has confirmed reports by the media that Kenyan taxpayers are shouldering a whooping Sh30 million per day as operation cost for the Standard Gauge Railway (SGR) passenger train between Nairobi and Mombasa, translating to close to Sh1 billion per month.
In an interview with NTV, the Deputy President said the huge cost of running the mega project is justifiable because SGR "is not a matatu."
“It costs a billion to run the SGR. The SGR my friend is not a matatu. The SGR is a huge operation,” said the DP.
Ruto said Kenyans are getting value for money, noting that Kenya is doing well with its SGR compared to other countries who constructed the line before Kenya.
“And for the record, today, we have seven cargo trains every day on the SGR. By December, we will have 12 trains every day on the SGR carrying cargo. And the good news is that by the end of this year, the SGR will have broken even.”
"Some of Kenya’s neighbours with SGR and who started before us are not where we are. They are operating one train a day,” he said.
Ruto said Kenyans should not worry about the cost as the railway line will begin paying for itself from 2020. “And the good news is by the time we get to 2020 when we begin to repay the loan, it will not be from the Kenyan exchequer. The SGR will pay for itself.”
Kenya got Sh324.01 billion loan from China’s Exim Bank for the construction of the 385km modern railway between Mombasa and Nairobi.
“If there’s one decision that the Jubilee administration made, that was correct and sound, it is the SGR. The investment and we are very proud of it and it is taking this country places,” said Ruto.
The second phase of the railway, which will run from Nairobi to Naivasha, is currently under construction and will be completed by June, 2019.
In May, Kenya Railways announced that the passenger train, Madaraka Express, which was launched by President Kenyatta in June,2017 had earned the government Sh1 billion in revenue in a span of one year.