Current:Home > FinanceKenya is raising passenger fares on a Chinese-built train as it struggles to repay record debts-Angel Dreamer Wealth Society D1 Reviews & Insights
Kenya is raising passenger fares on a Chinese-built train as it struggles to repay record debts
View Date:2024-12-23 23:13:45
NAIROBI, Kenya (AP) — 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.
State-owned Kenya Railways said in a statement that the 470-kilometer (290-mile) journey between the port city of Mombasa and the capital, Nairobi, will cost around $30 in first class, up from $19, and $10 in economy, up from $6.
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.”
Wednesday’s announcement came days after Kenya’s central bank governor, Kamau Thugge, said the Kenyan shilling had for years been overvalued by 25%, which “ led the country to maintain an artificially strong exchange rate.”
Two weeks ago President William Ruto was in China, where he sought a $1 billion loan to finish stalled infrastructure projects despite Kenya’s overall debts at a record $70 billion.
The new train fares come into effect on Jan. 1, 2024.
The changes will also affect the popular commuter rail service in the capital, Nairobi, as well as the Kisumu and Nanyuki safari trains that attract thousands of tourists each year.
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 Kenya SGR desperately needs cross-border expansion to make it a financially sustainable project,” economist Aly-Khan Satchu told the Associated Press.
“The SGR, as is, is a dud. To make it sustainable, it needs to connect Uganda’s oil to the sea, and (Congo) minerals,” Satchu added.
Kenya has been struggling with growing public debt which has led Ruto to announce tough austerity measures including restrictions on foreign trips and cutting all government ministry budgets by more than 10%.
But Ruto has faced criticism from Kenyans over his own foreign travels, with 38 trips since his inauguration in September 2022. That’s more than any of his four predecessors in their first year in office.
veryGood! (634)
Related
- Democrat Ruben Gallego wins Arizona US Senate race against Republican Kari Lake
- Taylor Swift braves subzero temps to support Chiefs in playoff game against Dolphins
- Jared Goff leads Lions to first playoff win in 32 years, 24-23 over Matthew Stafford and the Rams
- Austin is released from hospital after complications from prostate cancer surgery he kept secret
- Reds honor Pete Rose with a 14-hour visitation at Great American Ball Park
- Lindsay Lohan Disappointed By Joke Seemingly Aimed at Her in New Mean Girls Movie
- Former chairman of state-owned bank China Everbright Group arrested over suspected corruption
- This photo shows the moment Maine’s record high tide washed away more than 100-year-old fishing shacks
- Where is 'College GameDay' for Week 12? Location, what to know for ESPN show
- Migrant deaths in Rio Grande intensify tensions between Texas, Biden administration over crossings
Ranking
- Mississippi Valley State football player Ryan Quinney dies in car accident
- Alaska legislators start 2024 session with pay raises and a busy docket
- Presidential hopeful Baswedan says Indonesia’s democracy is declining and pledges change
- How the Disappearance of Connecticut Mom Jennifer Dulos Turned Into a Murder Case
- Jennifer Lopez Gets Loud in Her First Onstage Appearance Amid Ben Affleck Divorce
- A rare male pygmy hippo born in a Czech zoo debuts his first photoshoot
- Texas jeweler and dog killed in targeted hit involving son, daughter-in-law
- UN agency chiefs say Gaza needs more aid to arrive faster, warning of famine and disease
Recommendation
-
How Saturday Night Live Reacted to Donald Trump’s Win Over Kamala Harris
-
Men who say they were abused by a Japanese boy band producer criticize the company’s response
-
Ryan Gosling says acting brought him to Eva Mendes in sweet speech: 'Girl of my dreams'
-
Taylor Swift and Brittany Mahomes Are Twinning & Winning in New Photos From Kansas City Chiefs Game
-
Prosecutors say some erroneous evidence was given jurors at ex-Sen. Bob Menendez’s bribery trial
-
Chelsea Handler Takes Aim at Ex Jo Koy's Golden Globes Hosting Monologue at 2024 Critics Choice Awards
-
Could Callum Turner Be the One for Dua Lipa? Here's Why They're Sparking Romance Rumors
-
'True Detective' Jodie Foster knew pro boxer Kali Reis was 'the one' to star in Season 4