Nairobi — The Standard Gauge Railway (SGR) transported 4.3 million tonnes of cargo in the first half of 2026, driven by stronger freight demand following China's introduction of duty-free access for most Kenyan exports.

According to the Africa Star Railway Operation Company, the SGR operated 3,931 freight trains during the six-month period, with average daily cargo volumes rising by 12.3 percent compared to the same period last year.

The growth was largely supported by increased exports after China implemented a zero-tariff policy on 98.2 percent of Kenyan products from May 1, boosting the movement of export-bound cargo from Nairobi to the Port of Mombasa.

Container shipments on the Nairobi-Mombasa route surged in May and June, rising by about 44 percent compared with the average monthly volumes recorded earlier in the year.

Keep up with the latest headlines on WhatsApp | LinkedIn

The duty-free arrangement covers key Kenyan exports including tea, coffee, avocados and macadamia nuts, and is expected to strengthen Kenya's export-led growth strategy while helping narrow the country's estimated Sh4.2 billion trade deficit with China.

Previously, many of the products attracted tariffs ranging between 4 percent and 25 percent. Their removal is expected to lower export costs and improve the competitiveness of Kenyan goods in the Chinese market.

Nonetheless, business leaders and economists have cautioned that Kenya must address structural bottlenecks, including high logistics and electricity costs, to fully capitalize on the expanded market access.

They also note that exporters will need to meet China's stringent quality, safety and traceability standards to sustain higher export volumes under the preferential trade arrangement.