Pundit and HK: Explain this SGR Ticket Racket

[Omollo]

• Tweet

I was told when that happens there is something seriously wrong.

Not just that we have the police enforcing Unga price. You see if Jubilee wants they can hire me and I flood Kenya with Unga and Mahindi and it will cost them nothing but they will also make nothing from it. I suspect they know and are ready to sacrifice their power in exchange for a small profit to their people.

As for the tickets, iko makosa gani?

SGR ticket racket, already: 3 arrested for fraudulently, expensively reselling tickets  #NTVBusiness @DannMwangi pic.twitter.com/CdUiFEelQ6

— NTV Kenya (@ntvkenya) June 16, 2017

[RV Pundit]

I must admit the unga subsidy programme is not working..the SGR is facing teething problems...nobody anticipated 3,000 people would be queuing to buy 1,000 tickets everyday. That is good problem to have if you ask me.

For Unga...UhuRuto need to find another solution.

[hk]

Omollo,

Like i had argued in another thread, the subsidy wasn't done right. Government shouldn't have a branded unga that's cheaper than regular unga in the market. Its simple arbitrage opportunity for traders. Milk prices have come down after increase in supply, the government should just have allowed duty free importation of maize and let the market forces bring down prices, just like milk.The same thing happened in nusu mkate government where supposedly cheaper unga was to be available in slums. SGR, scalpers for high demand tickets are everywhere in the world it goes to show demand is higher than supply. SGR should increase trips instead of going after scalpers.

[Omollo]

Omollo,

Like i had argued in another thread, the subsidy wasn't done right. Government shouldn't have a branded unga that's cheaper than regular unga in the market. Its simple arbitrage opportunity for traders. Milk prices have come down after increase in supply, the government should just have allowed duty free importation of maize and let the market forces bring down prices, just like milk.The same thing happened in nusu mkate government where supposedly cheaper unga was to be available in slums. SGR, scalpers for high demand tickets are everywhere in the world it goes to show demand is higher than supply. SGR should increase trips instead of going after scalpers.

Please share with me the details of the Nusu-Mkate subsidy in the slums. It is news to me.

Could you name and provide evidence of any place where train tickets are sold on the secondary market in the world as you claim.

That said, I have some more questions for you

1. What right has the government to subsidize SGR and not the buses?
2. Upon what basis did the Government decide which millers would participate in the subsidy program. If some were left out do you agree that they have a right to be compensated because they are unable to compete against a subsidized price?