This archive report was first published on 7 August 2019.
On August 7, 2019, the 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 decision was met with opposition from lawmakers, who summoned Transport Secretary James Macharia over the cargo directive.
According to Mvita MP Abdulswamad Nassir, the directive was 'illegal' and 'very wrong.'
The SGR has struggled to attract adequate cargo volumes, with investors balking at the tariffs to transport goods from the Mombasa port to the Inland Container Depot in Nairobi.
Freight services, which started in January 2018, generated Sh4 billion in the year to December, 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 Sh1 billion a month or Sh12 billion a year.
As a result, freight charges were increased this year, and passenger fares for children on Mombasa-Nairobi trains were raised by 100 per cent.
