SGR rakes in Ksh.1Billion in first year of service: over a million passengers ferried

Kafrican said:

persenger service ilikua inatarajiwa kuchangia 5% to 7% of revenue pekee so if 1Billion is 5% , what is 95%?.... 95% is approx Ksh 20 Billion..


if you take 426billion loan/ 20 billion revenue = 21 years , hio ni miaka kidogo sana kulipa $4B, kuna nchi bado zinalipa loan zilichukuliwa 1969! ,

Tena hio 21 years is assuming the whole loan italipwa na SGR revenue alone, which wont be the case, kwasababu KPA is also the one leveraging on the SGR, KPA hu generate $300 million dollars kila mwaka na kuipatia serekali, kwa mfano ichukuliwe $80m-100m ya KPA kila mwaka kuchangia kulipa SGR loan hio miaka ya kudaiwa inapunguka zaidi hadi 14 years... Yani mtoto mchanga akizaliwa leo, hio loan itakua imelipwa kabla huyo mtoto apate kitambulisho (18yrs old)

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In SGR projects, money that comes from passengers can never be used to pay for loan (p+i). It's principally for opex. I don't think if the annual revenue projected will easily be attained if the actual revenue is only down to 5%.

eliakeem said:

In SGR projects, money that comes from passengers can never be used to pay for loan (p+i). It's principally for opex. I don't think if the annual revenue projected will easily be attained if the actual revenue is only down to 5%.

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Persenger revenue would disapear in paying workers , fuel for both persenger and cargo I never counted it as part of the loan repayment. ..
The target of the cargo service by end of year is to transport an average of 1, 200 containers a day, if every container is charged 50, 000... at the end of the year about $220million will be generated...This is what I used to calculate the loan repaiment...

apart from that, train service and public projects world over are means to an end... in 90% of the time they are only expected to generate enough revenue to be able to run themselves (sustainability) , not to make super profits.... government does not see profit in black and white like private companies.... for e.g. How much direct revenue has Thika highway generated since 2013??? the answer is zero, but how many businesses have grown along the Thika highway and as a result paid more taxes to the government? How many people have had a better life because of that road? .... the government looks at profits that way... so the SGR might not generate alot of revenue, but the multiplier effect will generate more money to the economy than the initial investment itself.... according to economist, it is said that when complete, the SGR will contribute 1% of GDP every year as a result of multiplier effect, thats atleast $700million dollars every year...

Hawaelewi kamwe...SGR was meant for cargo from the start...passenger service was like value addition...Cargo to east africa ndio italipa deni...wengi wa wana JF hapa hata darasa la high school hawajahahi kuliona hivyo msisubiri waelewe economics