This archive report was first published on 8 August 2019.
On August 7, 2019, the Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) withdrew an order that would have made it compulsory for importers to use the Standard Gauge Railway (SGR) for cargo transportation, pending further consultation with relevant stakeholders.
The move came after cargo operators accused the Government of creating a monopoly out of the SGR despite lack of commitment by custom agencies to improve efficiency at the Mombasa port and Embakasi Inland Container Depot (ICD).
Transport Cabinet Secretary James Macharia had defended the earlier order, insisting the SGR is central to the country’s cargo transport and linked to the success of the port of Mombasa.
“We have invested heavily in the SGR which is a competitive advantage for the port of Mombasa and a gateway all the way to the great lakes, and deep into Central Africa,” said Mr Macharia while launching KPA’s five-year strategic plan.
However, cargo operators and importers argued that restricting cargo clearance through a centralised channel would lead to job losses affecting thousands of people directly and indirectly.
