The Kenyan government lost more than Sh126 billion in revenue in one year from Mombasa County since the introduction of freight trains.
This is according to a new study released by the University of Nairobi’s school of business.
The study also reveals that more than 60 per cent of employees working at the Container Freight Stations (CFSs) were sacked over the same period.
The study further reveals that Mombasa County is at “economic decay point”, with CFSs, long-distance trucks and transport related businesses such as fuelling and service stations mostly affected.
Presenting the assessment report on the socio-economic impact of the operationalisation of the standard gauge railway (SGR), UoN acting deputy vice chancellor, Prof Julius Ogeng'o, said the study shows the project has more negative effects on the economy of coastal people than good.
“We have met Mombasa governor Hassan Joho, Coast MPs and other port stakeholders and they have validated the report which has indicated the significant levels of negative impacts,” said Prof Ogeng’o who was accompanied by team leader Ken Ogolla.