Cargo charges on the standard gauge railway (SGR) from Mombasa to Nairobi will rise by up to 79 per cent from January 1 in bid to raise more revenue to pay the Chinese operator.
Kenya Railways said the cost of transporting a 20-foot container from Mombasa to Nairobi will increase to $500 (Sh51,275) from Sh35,000, a 46.5 per cent rise.
Hauling the larger 40-foot container will cost up to Sh$700 (Sh71,785), from the current Sh40,000, reflecting a 79.9 per cent rise.
The SGR cargo sector has struggled for business in the face of competition from truckers, prompting a fierce government campaign to drive cargo to the new transporter.
Kenya requires additional cash from the railway business to ease the taxpayer’s burden of paying the Chinese firm managing the SGR.
China Communications Construction Company runs the SGR cargo and passenger business at an undisclosed management fee.
“The promotional freight tariff will come to an end on December 31, 2018, and thereafter the (new) tariff book rate will become effective from January 1,” Kenya Railways said in a notice.
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