This archive report was first published on 8 August 2019.
On August 7, 2019, Kenya's taxman and Kenya Ports Authority (KPA) were set to enforce a directive forcing importers to use the Standard Gauge Railway (SGR) for goods coming to Nairobi and beyond from the Mombasa port.
However, the two agencies made a U-turn on Tuesday evening, announcing that they had postponed the plan directing importers to move their containers from Mombasa to Nairobi Inland Container Depot (ICD) through the SGR.
The move was met with opposition from lawmakers, who summoned Transport Secretary James Macharia over the cargo directive.
"This is an illegal directive purportedly signed by both KPA and KRA to compel all importers of cargo to use the SGR," said Mvita MP Abdulswamad Nassir.
The SGR line has struggled to attract adequate cargo volumes, with investors balking at the tariffs to transport goods from the Mombasa port to the ICD 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.
