This archive report was first published on 16 November 2019.
On November 16, 2019, the Standard Gauge Railway (SGR) was hailed as a game-changer for Kenya's economy. But what exactly does this project entail, and how has it impacted the country's trade landscape?
According to BWIRE MUGOLLA, the SGR has broken the monopoly of Container Freight Stations (CFS) in Mombasa, leading to lower prices for Kenyans. In an article published on November 16, 2019, MUGOLLA argued that the SGR has revolutionized the way goods are transported in Kenya, making it more efficient and cost-effective.
Before the SGR was introduced, goods imported through the Mombasa port were subject to lengthy delays and high costs. This was largely due to the inefficiencies of the CFS system, which allowed a select few to profit from the storage and transportation of goods. However, with the SGR, goods can now be transported directly from the port to inland destinations, bypassing the CFS system altogether.
As a result, prices for goods have decreased significantly, making them more affordable for Kenyans. This is particularly evident in the case of Ugandan and Rwandan importers, who have been able to circumvent the CFS system and import goods at a lower cost. In fact, goods imported through Mombasa are now cheaper in Uganda than in Kenya, despite being transported through the same port.
While the SGR has undoubtedly brought about significant changes to Kenya's trade landscape, it has also faced opposition from some quarters. Truck drivers in Mombasa, for instance, have protested against the SGR, citing concerns about job losses and reduced revenue. However, as MUGOLLA pointed out, these concerns are largely unfounded, and the SGR has actually made the work of truck drivers safer and less costly.
