Increasing cost of fuel in Kenya after enactment of the Finance Act 2023 will increase transport cost along the Northern Corridor by more than 30 percent, with some traders already opting to use rail to ferry cargo from the Port of Mombasa to the hinterland. The report shows in March, the Naivasha ICD recorded 1,670 tonnes of conventional cargo which included wheat, maize and fertiliser. The subsequent month registered a sharp increase of throughput to reach 3,662 tonnes of cargo while in May cargo handled increased to 4,530 tonnes. Since March, the facility received 116 (teus) containers of imports compared to 54 in February, April (118) and May 178 teus. Despite promotional tariffs by the Kenya Railways Corporation (KRC), few traders are using railway to return empty containers to Mombasa.

Source: The North Africa Journal July 11, 2023 16:02 UTC