Logistics Shift to Mombasa to Hit SGR Profits 

File image of Kenya's Standard Gauge Railway that China financed and built as part of the Belt and Road Initiative. Simon Mania/AFP

One of William Ruto’s first actions as Kenyan president was to reverse a decision made by his predecessor to force logistics operators to use the Chinese-built Standard Gauge Railway’s inland port in Naivasha for logistics and clearance services. 

Ruto said the decision was aimed at restoring thousands of lost jobs to Mombasa port. The decision is expected to impact the SGR’s profitability, which has also depended on government pressure to reduce the use of trucking in favor of rail. 

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by Cobus van Staden

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