This archive report was first published on 18 December 2019.
Kenya Railways Corporation has launched the Mombasa-Naivasha standard gauge railway (SGR) freight service, aiming to attract transit customers despite higher charges compared to road transport.
According to Kenya Railways, the service targets landlocked neighbours such as Uganda, South Sudan, Burundi, DR Congo, and Rwanda.
The government hopes to generate revenue from rail services to pay the first instalment of the Sh324 billion SGR loan in January next year.
The SGR Phase 2A cargo service is now operational, with Kenya Railways charging Sh60,000 to transport a 20-foot container from Mombasa to Naivasha, and Sh85,000 for a 40-foot container weighing up to 20 tonnes.
For 40-foot containers weighing above 20 tonnes, the charge is Sh91,000. Promotional rates have been introduced, with half-price charges for loaded cargo from Naivasha to Mombasa.
Conventional cargo will be charged Sh2,590 per tonne to be hauled from Mombasa to Naivasha. Charges for transporting cargo from Nairobi to Mombasa remain the same.
Kenya Transport Association (KTA) chief executive officer Dennis Ombok has cautioned importers against being impressed by the new tariffs, claiming there are hidden charges.
"We cannot oppose government's move but let importers know there are so many hidden charges which are not declared. They include marshalling charges, last mile charges among others," he said.
