This archive report was first published on 16 December 2019.
President Uhuru Kenyatta is expected to launch freight services on the Nairobi-Suswa Standard Gauge Railway (SGR) line on Tuesday, marking a significant milestone in the project's development.
The launch comes ahead of the full completion of the Naivasha Inland Container Depot (ICD), with key installations on cargo clearance yet to be onboarded.
Transport economist David Nashon has questioned the government's decision to launch the freight services, citing concerns over the project's viability.
'What they would be looking for in an early launch is the boosting of investor confidence,' Nashon said. 'The government would want to maintain the rail option remains to importers in the hinterland beyond Naivasha ahead of the fully operation of the line.'
Despite these concerns, the government remains committed to the project, with Industrialization Cabinet Secretary Peter Munya announcing the receipt of the first entrant to the expected economic zone in the Danish Brewing Company.
The launch of the freight services is also set to be a continuation of the road-truckers' fears on forced SGR use, with the truckers locked in a battle with the Transport Ministry over the mandatory use of the railway for transporting cargo.
Revenues generated from the SGR have previously been outpaced by operational costs, leading to concerns over the project's economic viability.
