This archive report was first published on 15 September 2019.
Published on September 15, 2019, a study by the University of Nairobi has shed light on 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, 2018, revealed that the introduction of freight trains has resulted in a loss of over Sh126 billion in revenue for Mombasa County in one year.
According to the report, more than 60% of employees working at the Container Freight Stations (CFSs) have been laid off over the same period, with over 8,111 workers expected to be sent home if the directive is upheld.
The study also found that Mombasa county will fail to collect more than Sh17.3 billion due to the closure of various businesses in the city, while a number of businesses such as fuel stations, hotels, and lodges along the Northern Corridor will be affected due to lack of patrons.
Presenting the assessment report, UoN acting deputy vice chancellor, Prof Julius Ogeng'o, said the study shows the project has more negative effects on the economy of coastal people than good.
Prof Ogeng'o stated, 'We have met Mombasa governor Hassan Joho, Coast MPs, and other port stakeholders, and they have validated the report, which has indicated the significant levels of negative impacts.'
Mombasa governor Hassan Joho condemned the Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) management for implementing an order that is not based on any law.
Mr Joho said, 'We have been negatively affected as the report has clearly stated; that is why we shall take any action to ensure the directive is stopped since it is not based on any law.'
He added, 'We want SGR to haul only 30% of the cargo while the remaining to be transported by truck so that we ensure our economy is not derailed.'
