This archive report was first published on 7 August 2019.
On August 7, 2019, Kenya Revenue Authority and Kenya Ports Authority made a U-turn on a directive that forced importers to use the Standard Gauge Railway (SGR) for goods coming to Nairobi and beyond from the Mombasa port.
The two agencies had initially planned to direct importers to move their containers from Mombasa to Nairobi Inland Container Depot (ICD) through the SGR, but they have now postponed this plan.
The decision was met with opposition from lawmakers, who summoned Transport Secretary James Macharia over the cargo directive.
MP Abdulswamad Nassir described the directive as 'illegal' and said that it was purportedly signed by both KPA and KRA to compel all importers of cargo to use the SGR.
Freight services on the SGR generated Sh4 billion in revenue in the year to December 2018, while passenger ticket sales were Sh1.61 billion, putting SGR revenue at Sh5.6 billion.
However, the revenue was not enough to meet the operational costs, which were estimated at Sh12 billion a year.
