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Impact of the Standard Gauge Railway on Business in Kenya
One of the recent positives for Kenya is there being a usable standard gauge railway between Nairobi and Mombasa, which will, hopefully, cross the border to a further East African region. The SGR can be an economic game changer as one of the biggest setbacks in doing business in Kenya which is high cost of transport. Air transport has always been expensive in Kenya and the road one is troublesome due to congestion and capacity.
But one can now easily transact business between Nairobi and Mombasa, own premises between the two cities and have the convenience of travelling safely and cheaply on the SGR. The movement of people and goods using SGR will be an economic revolution.
There will be an impact on long-haul trucks and bus travel but this will sort itself out eventually with better economic dispensation.
The SGR will create and move more business in goods and services and other economic activities with different value chains.
It will encourage more innovations in the logistics business such as better logistic facilities in the cold chain
The cargo impact is even more profound — it can ferry 61,000 tons a day, replacing 2,000 trucks (each with an average payload of 30 tons).
Its efficiency and reliability will ultimately influence importers and exporters make — whether to use it or stick to road transport.And that will ultimately translate into more ships discharging and loading cargo much faster, at the port, expanding opportunities for the economy to grow faster.
 
 
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