•In the new operating system, cargo is sent all the way to Nairobi and then back to Mombasa at the cost of the trader or importer – using the SGR.
Image: EZEKIEL AMING'A
Lawmakers are probing the government's directive that traders with a KRA PIN registered in Nairobi should clear their Standard Gauge Railway cargo at the Nairobi ICD.
Importers and traders with KRA PIN registered in Nairobi have been compelled to collect their goods from Nairobi ICD, whether they need them in Mombasa or elsewhere.
A lawmaker has petitioned the National Assembly to compel the government to explain why traders registered in Nairobi and working in Mombasa are barred from trading freely.
Mvita MP Abdulswamad Nassir wants the Finance Committee of the National Assembly to provide a statement on the directive saying it risks killing businesses in Mombasa.
In the new operating system, cargo is sent all the way to Nairobi and then back to Mombasa at the cost of the trader or importer – using the SGR.
The lawmaker wants the committee to explain who gave the orders and measures taken by the government to ensure the economy of Mombasa is protected.
“Could the chairperson explain measures taken by the government to ensure that the economy of Mombasa is protected from illegal and unconstitutional practices that force traders to use the SGR or meter-gauge railway?” the motion reads.
Nassir holds that the government was unconventionally imposing reforms that are against the free-market economic model.
“Could the chairperson further explain what punitive measures the government is taking against those instituting the illegal and unconstitutional directives?” he asked.
The MP said the directive could be a death-knell to the logistics industry – as it stands to affect transporters, warehousing, and manufacturers based in Mombasa.
“The underhand practices not only increase the cost of goods but are also killing economies in counties within the coastal region led by Mombasa,” the MP added.
The transport and storage sector – largely based in Mombasa – contributes about 27 per cent of the country’s gross domestic product (GDP).
“The directive is actually counterproductive to the government objectives of supporting the common mwananchi and making life bearable to its citizens,” Nassir said.
He said that instead of employing the questioned tactics, Kenya Railways should strive to make ICD attractive by giving incentives like an extra five days clearance free.
National Assembly Speaker Justin Muturi approved the motion, meaning the Homa Bay MP Gladys Wanga-led Finance committee has 14 days to report to the House on its findings.
It is the second time the SGR directives are being questioned, the first being that which was stopped by Parliament which required all cargo to be hauled by SGR for clearance at Nairobi ICD.
The Kenya Transporters Association said the decision will paralyse the economy of the region and cause thousands to lose jobs.