Kenya: Government Reverses Decision on Mandatory Haulage of Sea Cargo on SGR

3 October 2019

Nairobi — The government has announced the suspension of a directive on mandatory haulage of sea cargo from the Mombasa port on Standard Gauge (SGR) railway following a meeting with leaders from the coastal region.

Transport and Infrastructure Cabinet Secretary James Macharia told a media briefing at Harambee House on Thursday the directive by Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) was give without adequate consultations and that the ministry had not approved it.

"The directive was made KRA Commissioner General and KPA Managing Director without full consultation within two days and we redirected it to be revised and it remains suspended," Macharia said.

The proclamation of mandatory haulage of cargo via SGR was fiercely opposed by truck business owners and lawmakers from the coastal region as well as those from town located along the Mombasa-Nairobi highway which benefits immensely from the tracking business.

The government recently rescinded a directive restricting the importation of second-hand cars aged eight years and above down from an existing 10-year age restriction. A decision to ban the importation of second-hand spare parts was also reversed.

The government reviewed the directive after the Kenya Transport Association to threatened to move to court to stop the directive that they claimed would cripple their businesses.

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