Raising road levy won’t make the SGR attractive

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A cargo train. PHOTO | WACHIRA MWANGI | NMG

The National Assembly’s Transport committee has proposed increased levies for traders ferrying their goods by road from the port of Mombasa to Nairobi. The stated aim of the additional fee is to encourage importers to use the standard gauge railway (SGR) whose levy is much lower.

Under the recommendations by the House committee, traders using road to ferry their cargo will part with 2.8 percent of the cost of goods ferried by road — 0.3 percentage points more — in Railway Development Levy, from 2.5 percent currently. Those using the SGR will continue paying the lower fee of 1.5 percent.

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Note: The results are not exact but very close to the actual.