SGR Scam Unravels

[vooke]

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The only solution is to ban prime movers/ truckers off the road. Even with the discount in place, SGR Cargo business is still struggling

https://www.businessdailyafrica.com/economy/SGR-cargo-fees-up-79pc-on-China-pay/3946234-4864552-h39s2h/index.html

[patel]

Dr. Ndii vindicated....sad part we are paying Chinese 1 billion shillings a month to run the damn thing not to calculate loan payments.

[RV Pundit]

Those prices plus last mile makes SGR not as competitive but it will be quicker and more reliable. They need to increase it slowly - 70% jump is insane.

[KenyanPlato]

Built on uthamaki school of economics

[Kadudu]

 
At least at Kiganjo School of Economics (better known as Kiganjo Police College) one would have learnt how to sell chickens and then build a financial empire run by wife or mpango and still keeping the police job for the side.

Built on uthamaki school of economics

[hk]

The only solution is to ban prime movers/ truckers off the road. Even with the discount in place, SGR Cargo business is still struggling

https://www.businessdailyafrica.com/economy/SGR-cargo-fees-up-79pc-on-China-pay/3946234-4864552-h39s2h/index.html

The SGR isn't commercially viable. Even with increased prices the government will still be subsidizing it.

[Kadudu]

SGR was schemed from day one to fill the pockets of a few. Its viability was never taken into consideration. Phase II is the last part and the rest to Kisumu will not be coming soon. The Chinese have refused to fund the rest cause they know Kenya cannot pay back those loans.

The SGR isn't commercially viable. Even with increased prices the government will still be subsidizing it.

[KenyanPlato]

It has emerged Chinese managers have been stealing 1 million a day

[Kadudu]

Peanuts in comparison to what has been stolen by Kenyan "leaders" in the name of SGR. Also that cash is splitt between the Chinese managers and their Kenyan counterparts.

It has emerged Chinese managers have been stealing 1 million a day

[patel]

Once upon a time I thought the only way to stamp out corruption in kenya is to bring in Chinese and let them clean out and fumigate the system little did I know kenya corruption has the potential of consuming even the best. It would be interesting to see what the Chinese will do with these corrupt fellas. I hope they will hang them.

[Dear Mami]

Isn't this the project Kibaki considered and rejected because the economics did not make sense? Then the World Bank said the same thing? It's really a shame but lots of people will now act as if this was just an innocent mistake.

[vooke]

Isn't this the project Kibaki considered and rejected because the economics did not make sense? Then the World Bank said the same thing? It's really a shame but lots of people will now act as if this was just an innocent mistake.

The bit about Kibaki rejecting is not factual methinks. Kimunya as the finance minister lobied for a 'free' Kung Fu feasibility study as opposed to a paid-for one that would have cost us about 110M.

[RV Pundit]

Is too early to call SGR a failure. Already it's a success if you compare us with Ethiopia - who've have had to ask for 30yrs repayment plan instead of 10.

[patel]

When you have to pay someone 1 billion ksh every month just to run the trains...I would consider the damn thing a big failure and the biggest financial blunder of our lifetime.

Isn't this the project Kibaki considered and rejected because the economics did not make sense? Then the World Bank said the same thing? It's really a shame but lots of people will now act as if this was just an innocent mistake.

[RV Pundit]

2m passengers who've enjoyed SGR will disagree...and now they are doing 28 trains trips daily. This is pretty amazing. It will break even and turn profitable. It just need time.

When you have to pay someone 1 billion ksh every month just to run the trains...I would consider the damn thing a big failure and the biggest financial blunder of our lifetime.

[hk]

2m passengers who've enjoyed SGR will disagree...and now they are doing 28 trains trips daily. This is pretty amazing. It will break even and turn profitable. It just need time.

When you have to pay someone 1 billion ksh every month just to run the trains...I would consider the damn thing a big failure and the biggest financial blunder of our lifetime.

With the raised cargo rate, expect that haulage to reduce. And if SGR is so good, cheap and efficient, why are importers being forced to use it?

[Kadudu]

SGR is neither cheaper or more efficient than haulage with trucks. The project will hang on the tax payers pocket till kingdom come. Ask any freight agent and they will tell you about the delays and unpredictabilities with cargo using SGR.

With the raised cargo rate, expect that haulage to reduce. And if SGR is so good, cheap and efficient, why are importers being forced to use it?

[GeeMail]

The volumes of cargo, 2m passengers and goods don't make economic sense. It's too early to have hauliers unhappy with the service. Will take 10 years or more to break even if at all. The theft by Chinese operators while still being paid officially is a very worrying trend but not at all surprising. Given the terms of the contract, isn't theft a major breach? In other places, this could have caused a major fallout, cancellation even. Kenya should spur macroeconomic growth in real terms (manufacturing, large-scale agriculture, value added industries) to create demand for SGR. Otherwise everyone will continue scrambling to steal peanuts until SGR becomes another rusting lunatic express.

[RV Pundit]

I can tell people complaining are clearing agents and long list of people who depend on truckers including cops. There is a whole industry include cfs that is being destroyed by SGR.

With the raised cargo rate, expect that haulage to reduce. And if SGR is so good, cheap and efficient, why are importers being forced to use it?

[GeeMail]

One could also say people praising SGR are landgrabbers or their cousins who visit the Coast every month to spend their largesse. Truckers and hauliers who depend on SGR and taxpayers have the right to reconsider the numbers. After destroying CFs SGR is now destroying common sense.