The government has suspended a directive that all cargo from the Mombasa Port to Nairobi be ferried through the Standard Gauge Railway.
The move comes after consultation between Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) among other stakeholders.
The new order was expected to take effect today, August 7, before the government made a dramatic change of tune on the same. The government has now allowed different stakeholders to weigh in on the matter before it can be implemented at the end of the day.
The directive had already started to cause a stir in the transport sector considering the high number of businesspersons who have ventured into the sector. The investors risk being edged out of the market if the government puts the directive in place as suggested earlier on.
“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,” reads part of the order issued on Friday, as quoted by Citizen Digital.
The decision to root for transportation through this channel was meant to boost the revenues generated by SGR following its construction.
Firms that were offering transportation service before the construction of the SGR now feel they are being fought by the government.