Cost comparison SGR Kenya vs SGR Tanzania

polen sana ndugu zetu ... tafuten tu namna nyingine ya kulipa deni la wachina
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NEWS
SGR services at risk over Sh38bn China firm debt
WEDNESDAY, JUNE 10, 2020 9:00
cargo train crosses the Mombasa-Nairobi Highway

A cargo train crosses the Mombasa-Nairobi Highway near Taru in Kwale County on February 21, 2020. PHOTO | WACHIRA MWANGI

JOHN MUTUA

By JOHN MUTUA
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SUMMARY

  • Kenya Railways has not paid Sh38 billion to Africa Star Railway Operation Company Ltd, the Chinese company contracted to operate the trains.
  • Parliament says Madaraka Express passenger and cargo trains could be grounded if the company withdraws its operations over pending bills.
  • Africa Star manages the ticketing system, landing and offloading of cargo and collection of passenger fares, including non-cash revenues like M-Pesa.
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Operations of the standard gauge railway (SGR) Madaraka Express passenger and cargo trains risk being grounded over Sh38 billion in unpaid bills, Parliament has warned.

The National Assembly’s Budget and Appropriations Committee (BAC) said that Kenya Railways has not paid Sh38 billion to Africa Star Railway Operation Company Ltd, the Chinese company contracted to operate the trains.

Africa Star Railway Operation Company is majority-owned by China Road and Bridge Corporation (CRBC) and was contracted in May 2017 to run the passenger and cargo trains on the SGR.

In its report on the 2020/21 Budget, the committee chaired by Kikuyu Member of Parliament Kimani Ichung’wa said that failure to pay the money could see the company pull out of the daily operations, a move that could ground the passenger and cargo trains.

Africa Star manages the ticketing system, landing and offloading of cargo and collection of passenger fares, including non-cash revenues like M-Pesa.

“Pending bills arising from operations of the standard gauge railway have accumulated to Sh38 billion and this may force the operator to pull out of the daily operations of the project,” Mr Ichung’wa said.

Kenya Railways, the infrastructure owner, however said that it had not received any protest letter from Africa Star, adding that it has also not seen any communication from Parliament over the matter.

“As Kenya Railways, we have not received any communication from Africa Star. We have also not received the report from Parliament and at the moment we cannot comment,” Kenya Railways said.

Kenya Railways has in the past disputed the pending bills claims by Africa Star charged for operating the VIP passenger trains.

Under the contract between Kenya Railways and Africa Star, the operator has the right to manage the ticketing system and any associated software and hardware.

Africa Star can only foot repair bills of less than Sh100,000 under the contract that requires Kenya Railways to pay the maintenance fees.

Further, the operator cannot be held responsible for any legal claims from third parties involving damage to property, death, illness or personal injury.
The Sh38 billion in pending bills add to the Sh420 billion that Kenya borrowed to build the modern line from Mombasa to Nairobi and purchase of engines and coaches.

They also pile the woes facing the Madaraka Express amid struggles to meet revenue targets through the passenger and cargo trains, which fell by eight percent in the four months to April from similar period last year.

Data from the Kenya National Bureau of Statistics shows that the SGR cargo and passenger trains generated Sh3.92 billion in the four months
to April, from Sh4.27 billion in a similar period last year.

The data shows that cargo revenues fell to Sh3.57 billion in the period under review from Sh3.72 billion while the passenger trains raised Sh354. 9 million in the four months to April from Sh548 million last year.

The revenues are expected to fall further following suspension of passenger services in April to curb the spread of the coronavirus disease. It is still uncertain when the government will ease restrictions that were imposed to curb the spread of the respiratory disease.

Last year, the government through the Kenya Ports Authority (KPA) and the Kenya Revenue Authority (KRA) ordered that all imported cargo be transported aboard SGR cargo trains effective August last year.

The decision that was meant to shore up revenue collections by the SGR, however, led to job losses for truckers, which culminated in numerous protests.

Operation costs of the SGR are estimated at Sh12 billion a year and the underperformance in revenues prompted the directive on cargo transport from the Port of Mombasa to Nairobi and beyond.

Transport and Infrastructure Secretary James Macharia has severally defended the cargo transport directive, saying it was meant to improve efficiency at the port in line with international requirements.

Kenya Railways also increased passenger fares from Sh700 to Sh1,000 for first class travellers in 2018 in an effort to shore up the trains’ revenues. This was followed by scrapping of the subsidy offered to children between the ages of three and 11 that had been in place since May 2017.

Kenya will start upgrading the old ‘metre gauge railway (MGR) line from Naivasha to Malaba next month at an initial cost of Sh3.5 billion. The line will be linked to the SGR line at Naivasha

The upgrade that is set to be completed in 12 months is part of the government’s plans to move cargo destined to Uganda and the neighbouring countries from the Port of Mombasa.

SGR services at risk over Sh38bn China firm debt


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Kafrican said:
Heko kwa ku post picha ambayo inawaonyesha wajenzi pabaya, bila kuwa na msimamo wowote wa ki siasa au ushabiki wa kijinga, Kungekua na watu.
Ingekua watu kwa forum wanajadili ki hivi basi forum hii ingekua nzuri sana...

Anyway, hii ulio onyesha hapa ni changamoto moja ya kujenga mahali flat ambapo hua pako na maji mengi msimu wa mvua (swampy), unakuta maji hayana mkondo wa kufwata, ni lazima uyangojee yadidimie sakafuni au yakauke kwa jua..

Hapa itabidi watengeneze mtaro mrefu sana ambao utaondoa maji na kuyapeleka sehemu nyengine iliopo kwa mteremko
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Muanze na nyie kukosoa vya kwenu, infact I have never seen any kenyani criticizing anything from his motherland in this forum.
 
The best 007 said:
Muanze na nyie kukosoa vya kwenu, infact I have never seen any kenyani criticizing anything from his motherland in this forum.
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Key word bieng, In this forum, i.e Yaani in this Tanzanian Forum where active and participating Kenyans number at most 20 members, where Tanzanians in their numbers every single day start topics that seek to put Kenya in bad light... Simply put, Kenyans are a minority here, and they get pushed to the corner by Tanzanians at every opportunity that presents itself, kwahivyo itakua ni nadra sana kwa mkenya kuja kuanza kuongea maovu yake hapa kwa forum kama hii ambapo mafisi yanangojea kupupurika kiushabiki.....

Ni kama vile akina CNN na BBC hupenda sana ku post maovu na mabaya kuhusu Africa.... Muafrica halisi akienda kule Uzunguni, naturally atataka kuonesha the other side of Africa kwamba pia sisi huku tuna raha, tunakula vizuri , tuna shule nzuri ambapo watu wanasoma na tuna maisha yanayoridhisha... Hii haimaniishi eti Africa hakuna shida ni tu kule nje unatetea kwenu manake hakuna mtu mwengine atatetea kwa niaba yako. Lakini utakuta muafrica huyo huyo akirudi kwao yeye ndo anaponda na ana malalamishi nchungu nzima kuhusu nchi yake.
 
Simon said:
meanwhile
SGR to be shut down over Sh38 Billion debt – Kenyan News
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Wizara ya fedha imeamuru wizara zote na ofisi zake zilipe invoice zote wanao daiwa by June 30, la sivyo kwenda mbele hawata bajetiwa hela zengine hadi wamalize pending bills zote.. Kampuni ya Kenya Railways iko chini ya Department ya Transport ndani ya wizara ya Uchukuzi..

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Mbali na hapo, kuna uwezekano hio kampuni ya Africa Star ikapokonywa kandarasi ya kuendesha biashara za reli, na kandarasi hio ipewe kampuni nyengine
The state-controlled Kenya Railways Corp. should consider immediately terminating the contract with Africa Star, the newspaper reported, citing Solicitor General Kennedy Ogeto. A review of the contract was scheduled for May 2022, five years through the arrangement.
Kenya Recommends Chinese Company Stops Running Railway - BNN Bloomberg
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kwahivyo hata Africa Star wakigoma kuendesha reli sio mwisho wa SGR, Infact SGR imepewa $180Million kwa bajeti ya mwaka huu iliosomwa leo kujenga Naivasha Industrial park.
 
Nairobi National Park

EYweFNVWsAEH7rn


The girraffes profide a good reference point to sense the true scale of the viaduct pillars
NJ8rf2u.jpg
 
Kafrican said:
Wizara ya fedha imeamuru wizara zote na ofisi zake zilipe invoice zote wanao daiwa by June 30, la sivyo kwenda mbele hawata bajetiwa hela zengine hadi wamalize pending bills zote.. Kampuni ya Kenya Railways iko chini ya Department ya Transport ndani ya wizara ya Uchukuzi..

View attachment 1475332



Mbali na hapo, kuna uwezekano hio kampuni ya Africa Star ikapokonywa kandarasi ya kuendesha biashara za reli, na kandarasi hio ipewe kampuni nyengine


kwahivyo hata Africa Star wakigoma kuendesha reli sio mwisho wa SGR, Infact SGR imepewa $180Million kwa bajeti ya mwaka huu iliosomwa leo kujenga Naivasha Industrial park.
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la sivyo kwenda mbele hawata bajetiwa hela zengine hadi wamalize pending bills zote..
Duniani hakuna kitu cha upuuzi kama huu. Wizara haiwezi kukosa hela kisa haijaclear bills za reli or other things like water, electricity or whatever! Hayo ni maneno tu hayana mbele wala nyuma!

simple tu, mishahara nayo si sehem ya budget za wizara? now think again about what you have written!
 
Kafrican said:
Key word bieng, In this forum, i.e Yaani in this Tanzanian Forum where active and participating Kenyans number at most 20 members, where Tanzanians in their numbers every single day start topics that seek to put Kenya in bad light... Simply put, Kenyans are a minority here, and they get pushed to the corner by Tanzanians at every opportunity that presents itself, kwahivyo itakua ni nadra sana kwa mkenya kuja kuanza kuongea maovu yake hapa kwa forum kama hii ambapo mafisi yanangojea kupupurika kiushabiki.....

Ni kama vile akina CNN na BBC hupenda sana ku post maovu na mabaya kuhusu Africa.... Muafrica halisi akienda kule Uzunguni, naturally atataka kuonesha the other side of Africa kwamba pia sisi huku tuna raha, tunakula vizuri , tuna shule nzuri ambapo watu wanasoma na tuna maisha yanayoridhisha... Hii haimaniishi eti Africa hakuna shida ni tu kule nje unatetea kwenu manake hakuna mtu mwengine atatetea kwa niaba yako. Lakini utakuta muafrica huyo huyo akirudi kwao yeye ndo anaponda na ana malalamishi nchungu nzima kuhusu nchi yake.
Click to expand...
Cku nyngne mcpolewa chang'aa huwa mnaongea point sn, btw umeeleweka mkuu, naona cku hz mna adabu kdg kwa Tz
 
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