Importers protest over SGR directive

Importers say the move to force them to use the SGR freight train will raise operating costs. [Gideon Maundu, Standard]

Importers and cargo transporters have opposed the Government’s directive that all goods destined to Nairobi and beyond be shipped using the Standard Gauge Railway (SGR).

The notice issued last week by the Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) comes into effect today. This is despite the growing worry of job losses and higher operating costs.

“This is giving the SGR a monopoly, which is illegal in Kenya and will also push other cargo transporters out of business,” said Excel Trucking Chief Executive Francis Omondi.

The directive compels all importers who use the Port of Mombasa to exclusively move their cargo through the SGR starting today.

“All imported cargo for delivery to Nairobi and the hinterland shall be conveyed by standard gauge railway (SGR) and cleared at the Inland Container Depot, Nairobi,” said the notice.

However, cargo transporters who spoke to The Standard said the Government’s move will raise the cost of doing business, with the costs passed on to consumers.

The Government has also been accused of issuing the directive without engaging stakeholders and addressing the inefficiencies associated with the port and the Inland Container Depot (ICD) in Embakasi.

“There are a lot of inefficiencies at the port and the ICD that the Government needs to address because they translate to delays in clearing goods and higher operating costs for importers,” said Mr Omondi.

Kenya Transporters Association Chief Executive Mercy Ireri said thousands of jobs stand to be lost directly, including drivers, mechanics and support staff as well as indirectly along the country’s trucking routes.

“If the SGR carries 800 containers each day, this translates to 800 drivers and their dependents left without a livelihood each day,” she said. It costs Sh75,000 to transport a container from Mombasa to the ICD in Nairobi where owners have to collect them at an extra cost. Trucking the same costs Sh80,000, with the cargo sent to the owner’s doorstep.

“We understand the idea is to utilise the SGR but the government should not force importers on the rail because it does not make economic sense,” said Kenya Auto Bazar Association CEO Charles Munyori.