Nairobi, Sept. 10 -- Taxpayers face a huge bill sustaining services on the standard gauge railway (SGR) after it posted a combined operating loss of Sh21.68 billion in the three years to May.
A report to Parliament by the Transport ministry revealed that the China-built railway netted Sh25.03 billion in revenue over the period against operational costs totalling Sh46.71 billion - a gap that taxpayers have to plug.
The operation loss has already caused the Kenya Railways Company (KRC) to default on an estimated Sh40 billion payout to China's Africa Star Railway Operation Company, which runs both passenger and cargo services on the SGR.
The below-target performance was attributed to reduced limited storage capacity at the Embakasi Inland C...