This archive report was first published on 9 August 2019.
On August 8, 2019, Transport Cabinet Secretary James Macharia defended the government's plan to transport all imported cargo through the Standard Gauge Railway (SGR), citing tax evasion by some importers.
Macharia told the National Assembly Transport Committee that the decision was made after revelations that some importers were colluding with Kenya Revenue Authority and Kenya Ports Authority officials to evade taxes.
He cited cases of importers declaring cargo meant for other destinations as meant for Mombasa, with many such cases reported at Mariakani weighbridge.
MPs had protested the plan, describing it as illegal and not approved by the National Assembly, and expressing concern that it would lead to job losses for millions of people employed at Container Freight Stations and clearing and forwarding agents.
However, Macharia downplayed fears of job losses, arguing that the SGR directive would create more opportunities.
The committee directed the CS to engage stakeholders and ensure all interests were taken care of before implementing the policy.
