This archive report was first published on 4 December 2019.
On December 4, 2019, the Business Daily published an editorial titled 'Resolve SGR issues'.
The article highlighted the challenges facing Kenya's Standard Gauge Railway (SGR) project, which was intended to reduce cargo transport costs and time, thereby improving the ease of doing business.
However, the project has been plagued by issues, including high tariffs and poor accessibility, making it difficult for importers to use the railway.
The article noted that the SGR's promotional tariff was later adjusted to be close to 80 percent higher, forcing importers to use the line, which goes against business logic.
The Kenya Railways' latest attempt to cut freight tariffs on railway use is seen as a belated afterthought following demonstrations by truckers against a State favoring of SGR.
The government needs to come up with a working formula that will naturally drive business from the roads to the railway without dictating terms.
