Government directive on SGR cargo transportation put on hold
The Kenya Revenue Authority (KRA) and Kenya Ports Authority (KPA) have postponed the implementation of new government directive that all cargo be ferried from Mombasa to Nairobi through the Standard Gauge Railway.
The directive, that was to take effect from August 7, was put on hold on Tuesday evening to allow for stakeholder consultation.
According to the government, the move will boost SGR revenues as well as enhance efficiency at the port of Mombasa and the Inland Container Depot in Nairobi.
The directive, which was issued on Friday states that 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.
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Transport Cabinet Secretary James Macharia has also been summoned to appear before the National Assembly on Thursday over the directive.
The CS Macharia is expected to appear before the Parliamentary Committee on Transport to shed more light on the order.
Stakeholders in the industry had however opposed the directive which was against World Trade Organization (WTO) agreement which rules on trade facilitation to allow for free cargo by the most effective means where Kenya is a signatory.
They are also concerned that workforce at Container Freight Stations (CFS) and clearing and forwarding agents will loss work.