Kenya is raising passenger fares on a Chinese-built train as it struggles to repay record debts

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Kenya is raising passenger fares on a Chinese-built train as it struggles to repay record debts
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Kenya has announced a sharp increase in passenger fares on the Chinese-built Standard Gauge Railway as the country struggles with repaying loans owed to Beijing and others along with higher fuel prices. That affects travel between the capital, Nairobi, and the port city of Mombasa. They also affect Nairobi's commuter rail and safari tourist trains.

NAIROBI, Kenya — Kenya announced Wednesday a sharp increase in passenger fares on the Chinese-built Standard Gauge Railway as the country struggles with repaying loans owed to Beijing and others along with higher fuel prices.

Kenya Railways cited the global rise in fuel prices: “This increase is informed by changes in the energy and petroleum sector, where prices of fuel have significantly increased, thus affecting the cost of our operations.” The Standard Gauge Railway, or SGR, which cost $4.7 billion borrowed from Chinese banks, started operations in 2017 but has struggled with low uptake of its cargo services.

“The SGR, as is, is a dud. To make it sustainable, it needs to connect Uganda’s oil to the sea, and minerals,” Satchu added.

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