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Transport business earnings rev up to Sh1.25tr on better roads

Kenyan Business Feed by Kenyan Business Feed
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JAMES KARIUKI

By JAMES KARIUKI
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Increased investment in transport infrastructure saw businesses rake in Sh1.25 trillion in 2018, up 14.2 percent from Sh1.1 trillion realised in 2017.

Road transport sub-sector, which has witnessed multi-billion shilling public investments increasing connectivity and easing movement of people as well as cargo, took Sh782.5 billion, a 62.5 percent of the total amount realised in 2018.

Roads are set for additional funding of Sh195.1 billion or 23 percent rise, with Sh128.4 billion to be spent on development of new roads in various parts of the country.

“Trunk and primary roads (A, B and C) will receive Sh61 billion, with secondary and minor roads (D and E) getting Sh50 billion while Sh16 billion has been set aside for implementation of urban road projects,” the Economic Survey reveals.

Air transport, buoyed by domestic travel and international arrivals that recorded 11.75 million in 2018, boasted Sh191.6 billion revenues. Rail transport, which has witnessed major investments in the past seven years, generated Sh11.3 billion where rail-freight cargo experienced a 226.7 percent rise to stand at Sh9.8 billion.

Pipeline transport solely used for conveyance of oil products earned Sh27.5 billion while postal and courier sub-sector that has attracted an array of private players brought in Sh33.8 billion.

In 2018, water transport players realised Sh67.6 billion with support service providers to the transport sector getting Sh136.5 billion, a 10.9 percent share of all earnings.



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