This archive report was first published on 7 August 2019.
The Kenya Revenue Authority and Kenya Ports Authority have put on hold a new government order requiring all cargo to be ferried from Mombasa to Nairobi through the Standard Gauge Railway, citing the need for stakeholder consultation.
The directive, which was set to take effect on August 7, 2019, was issued last Friday and stated that all imported cargo for delivery to Nairobi and the hinterland shall be conveyed by Standard Gauge Railway (SGR) and cleared at the Inland Container Depot – Nairobi.
According to the government, the move aims to boost SGR revenues and enhance efficiency at the port of Mombasa and the Inland Container Depot in Nairobi.
However, the directive has been strongly opposed by leaders from the Coastal region and civil society groups, who claim it will lead to massive job losses in the transport sector.
Transport Cabinet Secretary James Macharia has been summoned to appear before the Parliamentary Committee on Transport to shed more light on the order.
Stakeholders in the transport sector have also protested the directive, citing the loss of business and jobs for hundreds of employees working in different Container Freight Stations (CFS) and clearing and forwarding agents in Mombasa.
“My members will lose big in the SGR project. Drivers, loaders and turn boys have lost jobs as most containers are collected in Embakasi, Nairobi. Majority of transporters will now be forced to move out of Mombasa as business here is no longer viable,” said Kenya Transport Association chief operations officer Mercy Ireri.
