Tanzania Railway Corporation incurred Sh224 billion loss in one year, CAG report reveals
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The primary reasons for the loss were identified as prolonged heavy rains lasting nearly four months, which disrupted operations, and a severe shortage of locomotives, engines and carriages.
Dar es Salaam. The Controller and Auditor General (CAG), Charles Kichere, has reported that the Tanzania Railways Corporation (TRC) incurred a loss of Sh224 billion in the 2023/2024 financial year, compared to Sh102 billion the previous year.
The primary reasons for the loss were identified as prolonged heavy rains lasting nearly four months, which disrupted operations, and a severe shortage of locomotives, engines and carriages.
He made these remarks on Thursday, March 27, 2025, while presenting his report for the 2023/2024 financial year to President Samia Suluhu Hassan at State House, Dar es Salaam.
“The corporation utilized Sh29 billion in government subsidies. Without this support, the corporation would have faced a loss of Sh253 billion,” he stated.
The CAG also noted that the audit was carried out prior to the commencement of operations for the Standard Gauge Railway (SGR), which began in June 2024, potentially limiting the Corporation’s revenue generation during the review period.
He recommended that TRC focus on improving operational efficiency, reducing costs, and implementing a comprehensive plan to acquire locomotives and carriages to increase revenue generation.
The audit also revealed losses for other government entities, including TTCL with a Sh27.7 billion deficit, Posta with a Sh23.3 billion loss, and East Africa Cables, among others.
