Kenya Railways Starts Phasing Out Cash Payment For Tickets

Madaraka Express passenger service has been in operation since June 1, 2018.
Madaraka Express station in Nairobi.

Kenya Railways will phase out cash payments for tickets starting February 1.

“We wish to notify our customers and general public that effective February 1 2023, we will no longer be accepting cash for purchase of tickets at all Madaraka Express Passenger Service Stations,” reads the notice.

According to a 2022 Visa survey, an estimated (71%) of businesses in Kenya use cash as a means of payment, compared to the higher use of cash by companies in South Africa (91%) and Nigeria (94%).

In addition, the less use of cash among Kenyan businesses is reflected in the high preference for mobile wallets (56 per cent) compared to Nigeria (14 per cent) and South Africa (7 per cent).

“Cash is the highest used option across all markets though relatively lower in Kenya. Mobile wallet payments are highest in usage as well as preference in Kenya. Usage of a personal account for business payment is also prevalent in Kenya. Bank transfer is widely used in Nigeria,” the survey stated.

The National Treasury, in its  Draft 2023 Budget Policy Statement, projects a 59.2% increase in tax revenue in the medium term to Kshs 4.0 trillion by the end of FY’2026/27 from the Kshs 2.5 trillion original FY’2022/23 budget estimates. 

As a result, the Kenya Revenue Authority is mandated to undertake the following measures, among others:

  • Reduce the Value Added Tax (VAT) gap to 19.8% from 38.9%.
  • Minimize the Corporate Income Tax gap to 30.0% from the current 32.2% recorded in FY’2022/23.
  • Integrate the KRA tax system with telecommunication companies.

Madaraka Express passenger service has been in operation since June 1, 2018. It transports passengers between Mombasa and Suswa station with stop-overs at Mariakani, Miasenyi, Voi, Mtito Andei, Kibwezi, Emali, Athi River, Nairobi Terminus, Ongata Rongai, Ngong, and Maai Mahiu stations.

Treasury Estimates Kenya’s FY23 Fiscal Deficit at Sh695.2 bn




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