(Nairobi) – The Standard Gauge Railway (SGR) has played a pivotal role in transforming Kenya’s tourism, trade, and industry, bolstering the country’s economy and reviving small towns along its route.
In the past five years, the SGR has become a major player in the movement of both passengers and cargo, generating significant revenue and creating new business opportunities in regions across Kenya. The Mombasa-Nairobi route, launched in 2017 at an estimated cost of Sh327 billion, is part of the government’s Vision 2030 initiative, aimed at making Kenya a middle-income country. The line, constructed by China Road and Bridge Corporation, has been operational for passenger services under the name ‘Madaraka Express’ and has since moved over 10 million passengers.
The SGR has significantly boosted tourism, particularly between Nairobi and Mombasa. The convenient and efficient transport system, now covering a variety of towns including Suswa, Athi River, Emali, Voi, and Kibwezi, has made travel to popular tourist destinations like Tsavo and Amboseli National Parks more accessible. As a result, the tourism sector has experienced a sharp increase in both local and international visitor numbers, especially during the festive season.
In the coastal region, where over 900 beach hotels and resorts are located, businesses are capitalizing on the SGR’s service to attract more tourists. Hotels have created packages that include transfers from the SGR terminals, offering a seamless travel experience. The SGR’s ability to traverse two major national parks has made it a unique travel option, with some of the most notable hotels like Amboseli Serena Safari Lodge benefiting from increased traffic.
Beyond tourism, the SGR has greatly influenced trade and industrial development. The railway system has facilitated the transport of raw materials and finished goods, promoting investments in industrial zones along the Nairobi-Mombasa corridor. The line’s capacity to move millions of tonnes of cargo annually has helped expand the country’s manufacturing sector and foster economic growth. The seamless link between the Port of Mombasa, Nairobi Inland Container Depot, and the Naivasha depot has streamlined supply chains, contributing to increased trade efficiency.
Kenya’s manufacturing sector has also witnessed a growth surge, with businesses benefiting from the faster, more reliable transportation options that the SGR provides. The Shippers’ Council of Eastern Africa has highlighted the significant improvements in infrastructure around the Inland Container Depots (ICD), where warehouses and container freight stations have been established to support the growing volume of goods.
SGR freight has also played a key role in international trade, especially in the movement of agricultural products like flowers, avocados, and macadamia nuts. Kenya Railways is investing in refrigerated containers to enhance the export of fresh produce by sea, which has the potential to cut freight costs by up to 50%. This shift to rail and sea freight offers a greener and more efficient alternative to road transport, aligning with Kenya’s environmental goals.