This archive report was first published on 25 August 2019.
On August 25, 2019, East African Cables, an electrical wires manufacturer, called for a review of the high costs associated with transporting goods from the Nairobi Inland Container Depot (ICD) to their Industrial Area yard in Nairobi.
The company's CEO, Paul Muigai, stated that the transport costs from the Embakasi-based ICD yard to their yard cost Sh30,000 per trip, while Kenya Railways received Sh70,000 for the Mombasa-Nairobi SGR freight service, totaling Sh100,000.
Mr. Muigai noted that while the SGR freight service is efficient and saves time, the high last-mile costs negate the benefits. He also pointed out that long-distance cargo trucks charge Sh90,000 from Mombasa Port to their yard in Nairobi.
Similar complaints have been made by other Nairobi-based and upcountry manufacturers who have been forced to pay hefty storage charges to private Container Freight Service operators near Nairobi ICD due to lengthy cargo clearance processes.
The Kenya Truck Association has warned that increased use of the SGR risks hurting the freight forwarding and transport businesses that employ hundreds of workers in Mombasa.
Transport Secretary James Macharia had recently suspended the planned August 7 implementation of a directive that all cargo be hauled by SGR to Nairobi after importers, truck operators, and Coast-based Container Freight Service Operators raised concerns.
