This archive report was first published on 15 September 2019.
On September 13, 2019, a study by the University of Nairobi (UoN) revealed the devastating impact of the Standard Gauge Railway (SGR) freight service on the economy of Mombasa County.
The study, which was conducted between August 27 and September 14, 2019, found that the introduction of freight trains had resulted in significant economic losses for the county, with over Sh126 billion lost in revenue in one year.
According to the study, more than 60 per cent of employees working at the Container Freight Stations (CFSs) were sacked over the same period, with a total of 2,987 employees laid off in the past year.
Prof Julius Ogeng'o, acting deputy vice chancellor of UoN, presented the assessment report on the socio-economic impact of the operationalisation of the SGR, stating that the study shows the project has more negative effects on the economy of coastal people than good.
Prof Ogeng'o was accompanied by team leader Ken Ogolla, who said the reported loss is as a result of the introduction of SGR freight trains and the order by the Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) that all imported cargo from the Port of Mombasa to Nairobi and other hinterlands be transported by rail.
Mombasa governor Hassan Joho and other leaders condemned KPA and KRA management for implementing an order which is not based on any law, saying they will take any action to ensure the directive is stopped.
Mr Joho added that they want SGR to haul only 30 per cent of the cargo while the remaining to be transported by truck so that they ensure their economy is not derailed.
SGR, which has been billed as the biggest transport infrastructure project in the country's history, is expected to haul close to nine million tonnes of cargo to make a profit of Sh5.08 billion a year, averaging Sh424 million per month.
