This archive report was first published on 4 October 2019.
On Thursday, the government made a crucial decision that will have far-reaching effects on the economy of the Coast region. The directive to haul cargo direct from Mombasa to Nairobi using the standard gauge railway (SGR) has been revoked.
This decision was reached after a meeting chaired by Interior Cabinet Secretary Fred Matiang'i and attended by different port stakeholders, including Kenya Ports Authority (KPA) Managing Director Daniel Manduku and Kenya Revenue Authority (KRA) Commissioner, Customs and Border Control Kevin Safari.
The meeting was a big relief to thousands of people who have lost their businesses, while others were rendered jobless by the directive that lacked legal basis. The resolution was reached after stakeholders presented a recent study by the University of Nairobi (UoN) indicating that the economic state of Mombasa is at 'economic decay point' since the government ordered all cargo be hauled using railway freight direct from Port of Mombasa to Nairobi Inland Container Depot in Nairobi in June this year.
According to Mr Roy Mwanthi, the Kifwa chairman, 'We agreed anyone can transport cargo using any mode of transport from Mombasa port to Nairobi. The meeting also resolved that nomination of cargo can be done in Mombasa depending on the wish of the importer.'
Previously, shipping lines handling Mombasa-bound cargo were nominated by clearing agents on clients' behalf. The KPA will now do nomination of all undocumented cargo based on vessel rotation, volumes and individual CFS capacity where clients should be informed regarding their cargo on time.
Coast Senator Mohammed Faki, MPs Mohamed Ali (Nyali), Omari Mwinyi (Changamwe), Ali Mbogo (Kisauni) and Abdulswamad Shariff Nassir (Mvita), who opposed the SGR directive, attended the talks. Mombasa Governor Hassan Joho expressed satisfaction with the intergovernmental committee talks, saying they had identified areas needing to be fixed and instituted measures to ensure residents benefit.
