This archive report was first published on 27 August 2019.
Published on August 27, 2019, the Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) issued a notice requiring all importers to ferry their goods via the SGR to the Inland Container Depot in Nairobi.
According to the notice, all imported cargo for delivery to Nairobi and the hinterland shall be conveyed by standard gauge railway (SGR) and cleared at the Inland Container Depot – Nairobi.
The Kenya Transporters Association has come out in opposition to the directive, citing concerns that it would push them out of business and result in thousands of job losses. Association Chief Executive Mercy Ireri estimates that up to 100,000 jobs stand to be lost if importers are asked to exclusively use the SGR.
Ms. Ireri explained that if the SGR carries 800 containers each day, this translates to 800 drivers and their dependents left without a livelihood each day.
Statistics from the Kenya National Bureau of Statistics (KNBS) indicate that the number of people employed in the transport and storage sector last year stood at 90,700, with the private sector accounting for 75% of the payments.
The transport and storage sector also paid out a cumulative Sh132 billion in wages, with the private sector accounting for 75% of the payments.
Aside from the direct jobs that stand to be lost, there will also be a knock-on effect to indirect jobs along the value chain, including mechanics, food and accommodation workers, and enterprises that serve long-distance drivers.
Transporters are therefore right in claiming that mandatory SGR use will lead to thousands of job losses.
