- Add new comment
- 1713 views
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.
Comments
You are right Ruto, SGR is not a matatu but rather a white elephant Kenyans will pay for dearly for years and years to come with their sweat and dignity. At least a matatu despite all hardships brings in the owner some money at the end of the day.
And NEVER should it be a Cash Cow for the MangaMangas.
Ati sgr generated 1 billion per year but cost of operation 1 billion per month something not adding up
It always confounds me when leaders like Ruto looks across the boarder and says" hey we are doing better than them...",Let not worry about the neighbor whom we are doing better than, let's look at the one who is doing better than us and ask,"how is he/she doing it"Or better yet, lets not even compare. If we set goals for our country and achieve them,that will make wananchi happy regardless of what is going on in the neighbor's house.Obviously this SGR is a wait and see situation. Its too early to draw aconclusion.They havent even figured out what is going on between the local and the chinese employees.Could it be a language barrier causing all these friction?Could the chinese be "so dumb" as to dare discriminate wafrika in their own house?This could be the epitome of intense arrogance.
I am still waiting for those domo domo who told me off when i talked about this SGR being another Goldenberg.
Based on the comments here, a few have studied the complex subject of capital investment: NPR, pay back Period etc
Every time a politician makes a statement, one wonders what happens to logic Immediately a sharp person joins politics. Why run a venture whose operational costs are 1b per month waiting to make 1b revenue at the end of the year???
Mr. Ruto, before you try to justify the cost, can you please justify the inhumane treatment of Kenyans by the Chinese while they are operating the SGR. It will not be in operation by 2020 if Kenyans get treated as slaves in their own country. As Vice President what standards did you set for the treatment of Kenyans by these foreigners?. You are a Public servant, how are you protecting the public. These are questions you will need to answer if you want to be President in 2022.