Kenya Reverses SGR Importer Requirement

The Kenya Revenue Authority (KRA) and the Kenya Ports Authority (KPA) have reversed an earlier directive that requires importers to use the standard gauge railway (SGR) for goods travelling from Mombasa port to Nairobi.

The requirement was intended to boost volumes and revenues for the SGR, which has struggled with finances. While revenue for 2018 stood at around Sh5.6 billion, operating costs were estimated to stand at more than double the figure.

The high tariffs for the SGR, which have been subject to a substantial increase, have proved prohibitive for many. According to the Kenya Transporters Association the cost of transporting a container from Mombasa port to Nairobi via road is roughly Sh80,000, as compared with around Sh100,000 using the SGR.