The Mombasa-Nairobi Standard Gauge Railway (SGR), a flagship project of China's Belt and Road Initiative in Africa, has turned a profit for the first time since its opening nine years ago, despite facing criticism from Western nations as a 'debt trap' project.
Since its launch in 2017, the SGR has been a focal point of criticism, particularly from Western media, which argued that China was burdening African countries with large loans that would be difficult to repay, using strategic assets like ports and railways as collateral. The SGR was often cited as a prime example of this so-called 'debt trap' theory, raising concerns that Kenya would be left with massive debts without a viable business model.
According to a report by the state-run Global Times, citing the Kenya Railways Corporation (KRC), the SGR recorded an operating profit of 3.2 billion Kenyan shillings (approximately $22 million) for the 2025-2026 fiscal year. This marks the first time the railway has achieved profitability since its inception.
During this period, the SGR transported a record 8.2 million tons of cargo, the highest since its opening. The increase in cargo volume, along with improved operational reliability, enhanced efficiency in cargo handling at the Port of Mombasa, reduced asset turnover time, and strengthened customer service capabilities, contributed to the improved performance. The utilization rate of the trains reached 70%, enhancing operational economics.
The Global Times described this shift to profitability as a response to the debt trap concerns raised since the railway's opening.
In 2018, the year following the SGR's launch, the project faced significant controversy, prompting the Chinese government and academia to issue rebuttals. The Global Times published expert opinions stating, 'Infrastructure projects are built ahead of demand, which is a basic principle of development. Large infrastructure such as hydropower plants, railways, and highways should be constructed with consideration for demand that may arise decades or even a century later.' The Chinese Foreign Ministry also stated that while the pace of investment in Africa may be slow due to the focus on infrastructure, such investments are beneficial to the countries in the long term as effective assets.
* This article has been translated by AI.
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