Number of SGR Passengers Increases for First Time Since 50% Fare Hike

The number of passengers traveling using the Standard Gauge Railway (SGR) increased in the second quarter of 2025 compared to the same period last year, according to the latest data from the Kenya National Bureau of Statistics (KNBS).

KNBS, in its Quarterly Gross Domestic Product- Second Quarter 2025 report, said that the number of passengers increased by 10.3 per cent to 658,600 thousand passengers in the review quarter, while the volume of cargo transported via SGR grew by 8.7 per cent to 1,894,400 thousand metric tonnes.

This marks the first time the number of SGR passengers has increased since Kenya Railways introduced a 50 per cent fare hike at the start of 2024. In the first quarter of 2025, the number had declined to 529,600 from 531,700 in the first quarter of 2024, representing a 0.9 percent drop.

KNBS had also reported that the number of passengers in 2024 dropped by 282,000 compared to 2023. In 2024, 2,447,000 passengers used the SGR, a drop from the 2,729,000 who used the service in the previous year.

According to the KNBS Quarterly Gross Domestic Product report, the transportation and storage sector is estimated to have expanded by 5.4 percent in the second quarter of 2025, compared to 3.4 percent in the corresponding quarter of 2024.

“The performance was supported by increased activity in land transport, railway operations and port throughput. Consumption of light diesel, which is a key input in passenger and freight road transport, rose by 12.0 per cent to 580.8 thousand metric tonnes from 518.6 thousand metric tonnes in the second quarter of 2024.

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Port activities remained vibrant during the review period, with Mombasa Port throughput increasing by 4.0 per cent to 10,730.4 thousand metric tonnes in the second quarter of 2024, partly driven by improved performance of Liquid Bulk, Dry Bulk, and Loose Cargo,” the report reads.

KNBS report on arrivals at JKIA and MIA

International passenger arrivals through the Jomo Kenyatta International Airport (JKIA) and Moi International Airport (MIA) rose by 3.3 per cent from 828,884 passengers in the second quarter of 2024 to 856,347 passengers in the review period.

Additionally, international departures increased by 7.3% from 824,640 passengers in the second quarter of 2024 to 885,139 passengers in the second quarter of 2025. However, domestic arrivals via JKIA and MIA declined by 7.5 percent from 370,138 passengers in the second quarter of 2024 to 342,244 passengers in the same quarter of 2025. Similarly, domestic departures through JKIA and MIA declined from 364,120 passengers in the second quarter of 2024 to 309,920 passengers in the second quarter of 2025.

KNBS also reported that accommodation and food Service activities experienced slower growth in the second quarter of 2025 compared to the corresponding quarter of 2025.

The sector grew by 7.8 percent in the quarter under review, compared to a growth of 35.0 percent in the second quarter of 2024. The number of international visitor arrivals via the two major airports, JKIA and MIA rose by 3.5 per cent in the second quarter of 2025 compared to a 15.4 per cent increase recorded in the second quarter of 2024.

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The information and communication sector, on the other hand, grew by 6.0 percent in the second quarter of 2025, compared to 6.7 percent growth in the same quarter of 2024. Total domestic mobile voice traffic increased by 17.3 per cent in the second quarter of 2025, to 29.2 billion minutes, compared to 24.9 billion minutes in the corresponding quarter of 2024.

International mobile voice traffic increased by 24.3 per cent to stand at 3,675,00,000 minutes in the quarter under review. Over the same period, total mobile broadband data consumption rose by 38.4 per cent from 448,200,000 GB in the second quarter of 2024 to 620,200,000 GB in a similar quarter of 2025, indicating not only an expanding subscriber base but also higher average data usage per user.

In contrast, the total value of mobile money transactions declined by 1.4 percent to Ksh2.08 trillion in the review period, from Ksh2.11 trillion in the corresponding quarter of 2024.

Financial and insurance activities

The financial and insurance sector grew by 6.6 per cent in the second quarter of 2025 compared to 8.0 per cent in the corresponding quarter of 2024. The Central Bank Rate was revised downwards from 13.00% in June 2024 to 9.75% in June 2025 to stimulate lending to the private sector and support economic activity.

The cost of credit eased during the second quarter of 2025, with average interest rates on loans and other advances by commercial banks declining to 15.29% in June 2025 from 16.85% in June 2024.

Additionally, the inter-bank rate declined from 13.14% in June 2024 to 9.72% in June 2025. The average yield for 91-day Treasury Bills stood at 8.21 per cent in June 2025 from 15.97 per cent in June 2024.

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