This archive report was first published on 7 August 2019.
On August 7, 2019, the Kenyan government wisely withdrew a directive that would have forced importers to use the standard gauge rail (SGR) to transport cargo from Mombasa to Nairobi.
The directive, issued by the Kenya Revenue Authority (KRA) and the Kenya Ports Authority (KPA), would have had significant economic implications, negatively impacting shippers and potentially leading to increased costs for consumers.
While the directive may have boosted SGR cargo revenues, it would have hurt truckers and operators of container freight stations in Mombasa, as well as the broader industry offering support services to transporters, including hospitality and micro-retail sectors.
The government's decision to withdraw the directive is a welcome move, as it prevents the issuance of directives reminiscent of a bygone era that benefit some at the expense of others.
