SGR: New report warns of job losses and death of major towns

Thousands of people and dozens of towns along the Mombasa-Nairobi-Malaba transport corridor will be adversely affected with the completion of the Standard Gauge Railway (SGR).

A social and environmental study of the second phase of SGR notes the bulk of cargo that is moved by road will henceforth be ferried by freighter trains and expects a number of towns to experience major economic decline, while some might even collapse.

The study commissioned by the Kenya Railways and the Chinese Communications Construction Company (CCCC) – the contractor – notes that some of the towns along this route that are heavily dependent on long-distance trucks are in danger of dying once the railway starts operating.

More directly affected will be transporters who run trucks and buses along the route as well as their drivers. The report estimates there are 50,000 drivers and assistants that operate some 25,000 trucks that move goods between Mombasa and Malaba who will be directly affected.

“The Kenyan trucks operating along the Mombasa-Nairobi-Malaba highway are estimated to be about 25,000. The norm is that a truck needs to have a driver and an assistant driver, commonly known as turn-boys. Therefore over 50,000 drivers and turn boys might be adversely affected once the proposed railway starts operating.”

It adds that workers in related businesses like mechanics and oil recyclers in major towns along the main road would also be affected adversely.

The study strongly recommends that KRC put in place structures that offer previous truck owners opportunities to become shareholders of cargo freighters. Where possible, the truck owners should even be empowered to purchase cargo trains so that they are not pushed out of transport business when the proposed line comes into operation.

“The proposed railway line will be a passenger- freight... it will reduce the number of long-distance trucks plying the Mombasa-Nairobi-Nakuru-Malaba highway in the long-term, hence loss of jobs for truck drivers, reduced revenue for truck owners and mechanics,” said the report.

The Environmental and Social Impact Assessment (ESIA) Study for the second phase of SGR between Nairobi and Naivasha has been submitted to the National Environmental Management Authority (NEMA).

Some of the towns cited by the report as having a bleak future include Ongata Rongai, Kiserian, Ngong town, Mai-Mahiu town, Naivasha town, Nakuru town and Narok town, which are likely to lose their status to new emerging towns. Kikuyu Town, which faced a similar fate recently with the Southern Bypass, will also be affected by the decline in traffic on the bypass.

“Towns and market centres which depend on the long-distance trucks for business opportunities will experience economic downfall... some trucks using the Southern Bypass to Mombasa Road are also likely to be affected, which may lead to the collapse of businesses in Kikuyu town,” said the report.

long-distance trucks

“When the new railway line... starts operating, the economies of these towns which are largely dependent on the transportation trucks will be affected adversely. Enterprises such as hotel, restaurant, lodging and garage businesses that are vibrant in these towns because of the long-distance trucks will also almost collapse.”

President Uhuru Kenyatta recently broke ground for the second phase of SGR that runs between Nairobi and Naivasha and is expected to cost Sh159 billion. The first phase is expected to start operations by June 2017.

Business owners and professionals that have been plying their trade in these towns are expected to migrate to other towns or change their skill sets so as to tap into other opportunities that may come up.
“The project is expected to lead to major disruption and change of local livelihoods of people directly or indirectly depending on long-distance trucks. These will include drivers, mechanics, turn-boys, truck owners, other related and supportive business owners, commercial sex workers and vendors,” said the report.

“When operations start these groups of people are expected to either change their main source of livelihood or migrate to other towns and regions where the trucks will be operating and even to other countries in the East African Region. Some workers may have to change their skill to suit the new opportunities that will arise. This will require time and resources to re-train.”