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Logistics Shift to Mombasa to Hit SGR Profits 

by Cobus van Staden
Kenyan lawmakers are hoping China will consider a debt repayment extension to service the remaining $3.3 billion that was borrowed to build the Standard Gauge Railway. 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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