SGR to Get Boost From New Directive by KRA and Ports Authority

Kenya Revenue Authority (KRA) has issued a new directive requiring all imported cargo destined for Nairobi to be transported through the Standard Gauge Railway (SGR) from Mombasa to the Nairobi Inland depot.

KRA and the Kenya Ports Authority (KPA) made a public notice that starting Wednesday, all goods that are to be transported to Nairobi be transported on the SGR from Mombasa.

“All imported cargo for delivery to Nairobi and the hinterland shall be conveyed by Standard Gauge Railway and cleared at the Inland Container Depot – Nairobi,” read the notice.

The two agencies explained that the move is to ameliorate the logistics of cargo at the Mombasa port as well as at the Inland Container Depot in Nairobi.

The SGR was built with an aim of improving the country’s economy as it was expected to generate at least 5.08 billion profit but that was not to be as in its first year of operation it made huge losses of close to 10 billion shillings.

The cargo sector was not any better as only less than a million was generated in the first year of operation.

According to the government, the transportation of goods through the SGR will not only enable close scrutiny of goods but is also another way the government wants to improve revenue collection.

This new directive is, however, likely to cause people to lose jobs or businesses to incur loses as transporters of cargo had earlier ignored the plans of the government to have them use the new line saying it was more expensive.

Transporters will have no choice but to transport their imported goods to Nairobi via the SGR. Employees of the about 20 Container Freight Stations (CFS) and clearing and forwarding agents may also lose their jobs if this new plan is implemented.

The truckers transporting cargo from Mombasa to various towns and especially those that use the Nairobi- Mombasa highway have been boosting some businesses such as restaurants and lodgings. Such businesses will be negatively affected if the government’s directive is successful.

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