This archive report was first published on 17 October 2019.
On October 17, 2019, President Uhuru Kenyatta launched the completed section of the Standard Gauge Railway (SGR) that ends in Suswa, Narok County. The launch has raised more questions than answers, particularly regarding the project's viability and potential to become a white elephant.
The SGR project, which began with the first phase from Mombasa to Nairobi in 2017, has enhanced transportation of both passengers and cargo, opening new opportunities for business and employment. However, the project has also faced significant challenges, including the financier, the Chinese government, pulling out of the project due to concerns about its profitability and the potential burden it would place on Kenya's already-strained economy.
The launch of the Suswa terminus has sparked concerns about the project's ability to generate sufficient revenue to justify the massive investment made. The terminus is a small trading centre without the capacity to handle increased passengers and large cargo volumes, leaving many wondering what happens to passengers and cargo offloaded there.
Furthermore, the project's viability is further complicated by the fact that the line has not reached Naivasha, a key destination that was supposed to be part of the project. The Nairobi-Naivasha trunk is estimated to cost Sh150 billion, and it is unclear whether the government has the resources to complete the route.
The SGR project's performance has also been disappointing, with the first phase between Mombasa and Nairobi making losses and failing to justify the huge investment made. The government has resorted to underhand tactics to boost volumes, compelling importers at the Mombasa port to use the train to haul cargo to Nairobi, which has precipitated a crisis with large truck transporters staging protests to push the government to annul that rule.
Unless the second phase is extended to the final destination, including revamping the old metre-gauge Naivasha-Kisumu-Malaba railway, the whole project risks being another white elephant.
