This archive report was first published on 3 July 2020.
Published on July 3, 2020, Kenya Railways Corporation is set to reap over Sh370.4 million in revenue annually following the revival of the Nairobi-Nanyuki Meter Gauge railway line.
The corporation has finalized negotiations with the business community on proposed rates for cargo and passenger trains, with the majority of the revenue coming from commercial operations.
The rehabilitation of the 240-kilometer line cost the government Sh1.8 billion, and the official launch by President Uhuru Kenyatta was scheduled to take place soon.
Speaking during an engagement forum with businesses intending to use the railroad in Chaka, Kenya Railways head of business, commercial, and operations James Siele stated that commercial trains would generate Sh365 million.
Commercial trains will transport petroleum products, which will be the key cargo, with KRC charging about Sh82,000 for a single 50-tonne fuel tank, with each tonne costing Sh1,640.
Vivo Energy, the anchor client for commercial trains, plans to transport 14 million litres of fuel per month from Nairobi to their depot in Nanyuki town, which has a capacity of 11.5 million litres.
Investors ferrying livestock from Laikipia County will pay Sh730 per tonne of cattle and Sh465 per tonne of small animals, while other cargo such as fertilizers, cereals, hardware, and farm products will be ferried at a cost of Sh1,400 per tonne.
Kenya Railways management will publicize the rates after they have been approved and appended by the Transport Cabinet Secretary James Macharia.
Investors ferrying imports stocked in Nairobi will pay Sh20,000 per TEU container from Nairobi to Nanyuki, while a trip from Nairobi to Nanyuki will cost passengers Sh200 and Sh1,000 for a first-class coach.
"In the first year, we will be handling a total of 106,000 tonnes of fuel, 94,000 tonnes of conventional cargo, and 24,000 livestock for imports category and export goods amounting to 50,000 tonnes," said Siele.
Nyeri Governor Mutahi Kahiga expressed optimism that the revival of the line will see the idling industrial plots around Kiganjo developed by investors in the container business.
"Kiganjo was sent to its deathbed when we lost the line. Many businesses closed down after the collapse of the line," said Kahiga.
Kiganjo Kenya Cooperative Creameries are also planning to expand their business on value addition lines, where dairy products will be ferried via the line.
