This archive report was first published on 8 August 2019.
On August 8, 2019, the government indefinitely suspended a directive that required all cargo to and from Mombasa Port to be ferried on the Standard Gauge Railway (SGR). This move has brought a welcome relief to private truckers and clearing firms, who risked losing their jobs due to the directive.
However, this reprieve is only a temporary solution to the long-standing cargo transportation issues that have been simmering for several years. The SGR was expected to increase efficiency, reduce transit time, and alleviate the congestion on the Nairobi-Mombasa highway. But despite its success in easing passenger train services, the SGR has failed to deliver on its cargo transportation promises.
The lack of efficiency in the SGR's cargo transportation system has resulted in lengthy delays, hefty demurrage charges, and increased costs for businesses. This has eroded profit margins and pushed up the cost of doing business in the country.
As the government continues to implement the SGR project with hefty public loans, it's essential to ensure that taxpayers are not unfairly disadvantaged. The 800 trucks plying the Nairobi-Mombasa highway daily are a significant investment and a source of jobs that must not be sacrificed to create a monopoly for the SGR.
Transport Cabinet Secretary James Macharia's recent summons to the National Assembly provides an opportunity to address the sticking issues and find a solution that allows the SGR to compete freely with other cargo transportation services.
