STUDY SHOWS SGR FREIGHT SERVICE KILLING MOMBASA ECONOMY.
By Philip Ouma.
Despite that the Standard Gauge Railway [SGR] is a worthwhile project expected to bring in numerous socio- economic benefits and grow the country's GDP by 1.5%, it is a two faced sword with viable demerits.Recently, a study by the University of Nairobi ( UoN) revealed that more than 60 percent of the employees working at the Container Freight Stations ( CFSs) were sacked over the same period.
The study further revealed that the coastal county is at ''economic decay point with CFSs,Long-distance trucks and transport related businesses such as fueling and service stations are mostly affected.
Presenting the assessment report on the socio-economic impact of the operationalisation of the Standard Gauge Railway(SGR), UoN acting Vice Chancellor; Prof. Julius Ogeng'o, said the study shows that the project has more negative effects on the economy of coastal people than good.The report, indicated that; a total of 2987 employees working in CFSs, trucks and fuel stations have been laid off in the past one year while more than 8111 workers are expected to be sent home if the directive is upheld.
The report also confirmed that , Mombasa county has failed to collect Ksh.17.3 billion due to closure of various businesses while a number of businesses such as hotels and lodges along the Northern corridor are affected due to lack of customers.This loss has been brought about by the introduction of SGR freight trains and the order by the Kenya Ports Authority( KPA) and Kenya Revenue Authority that all imported cargo from the port of Mombasa to Nairobi and other hinterlands be transported by the Standard Gauge Railway.
It also showed increasing cases of physiological and related issues and break- up of societal bonds since the introduction of SGR and it recommended the need for a policy to allow the market operate freely to create sustainable environment for businesses and other sector stakeholders. This happens as SGR edges out trucks in long distance cargo transport , towns and market centers , social amenities in Mombasa; heavily reliant on trucks for business opportunities are in danger of economic downfall as establishments such as hotels, bars , lodgings and garages collapse due to lack of customers.
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Despite that the Standard Gauge Railway [SGR] is a worthwhile project expected to bring in numerous socio- economic benefits and grow the country's GDP by 1.5%, it is a two faced sword with viable demerits.Recently, a study by the University of Nairobi ( UoN) revealed that more than 60 percent of the employees working at the Container Freight Stations ( CFSs) were sacked over the same period.
The study further revealed that the coastal county is at ''economic decay point with CFSs,Long-distance trucks and transport related businesses such as fueling and service stations are mostly affected.
Presenting the assessment report on the socio-economic impact of the operationalisation of the Standard Gauge Railway(SGR), UoN acting Vice Chancellor; Prof. Julius Ogeng'o, said the study shows that the project has more negative effects on the economy of coastal people than good.The report, indicated that; a total of 2987 employees working in CFSs, trucks and fuel stations have been laid off in the past one year while more than 8111 workers are expected to be sent home if the directive is upheld.
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| IMAGE: whownskenya.com |
The report also confirmed that , Mombasa county has failed to collect Ksh.17.3 billion due to closure of various businesses while a number of businesses such as hotels and lodges along the Northern corridor are affected due to lack of customers.This loss has been brought about by the introduction of SGR freight trains and the order by the Kenya Ports Authority( KPA) and Kenya Revenue Authority that all imported cargo from the port of Mombasa to Nairobi and other hinterlands be transported by the Standard Gauge Railway.
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| IMAGE :kpa.co.ke |
It also showed increasing cases of physiological and related issues and break- up of societal bonds since the introduction of SGR and it recommended the need for a policy to allow the market operate freely to create sustainable environment for businesses and other sector stakeholders. This happens as SGR edges out trucks in long distance cargo transport , towns and market centers , social amenities in Mombasa; heavily reliant on trucks for business opportunities are in danger of economic downfall as establishments such as hotels, bars , lodgings and garages collapse due to lack of customers.
Thank you for reading my article; you have greatly contributed to my success as a writter.
PLEASE DON'T FORGET TO COMMENT IN THE SPACE BELOW.
We need to fight this SGR thing... Many families are suffering cause of this since their bread winner lack a job to provide for the family..this Kenya only prayers can
ReplyDeleteThis is only possible if the Government takes keen note on economic status of Mombasa county.
DeleteI like the waay you are expressing your ideas
ReplyDeleteThank you!
DeleteSeems the project has got lots of negatives effects compare positive
ReplyDelete