The Kenya Revenue Authority has postponed the implementation of an order that required all imported cargo to be moved via the SGR and cleared at the Nairobi Inland Container Depot.
The authority announced the postponement on Tuesday, a day after Coast MPs and civil society groups opposed the order.
The new directive had been announced last Friday by KRA and the Kenya Ports Authority.
MPs Abdulswamad Nassir (Mvita), Badi Twalib (Jomvu) and Khatib Mwashetani (Lunga Lunga) had vowed to oppose the move through Parliament, while lobby Haki Africa planned to sue.
The MPs and human rights groups said the move is morally, ethically and economically wrong and also goes against the constitution as there was no public participation.
The order was to take effect on Thursday.
The legislators said the order would kill the clearing and forwarding businesses, Container Freight Stations, trucking, warehousing and other related businesses employing thousands at the Coast.
