THE EFFECT OF THE SGR MONOPOLY POLICY TO THE ECONOMY

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It should be noted that when the government began constructing the Standard Gauge Railway it was described as ambitious, a revolutionary endevour in the countrys infrastuctural develpoment with first class equioments.We all felt proud to have taken this step in our country to finally improve the infrastructure of our country, little did we know that the Governments policyof  imposing a  monoploy  policy of the SGR transportation of  an inland- bound import cargo was to be haphazard and counterproductive.

According to a study conducted by  the UON it shows that 60% of workers who were working at he Container Freight stations had been sacked , the government has lost more than 126 billion in revenue in one year.The study shows that the coastal region is at a economy decay point with many CFSs long distance trucks and transport related business such as fuelling and station  service being  greatly affected.Many business men had to shut down thier  business due to the SGR, in the past they would be the ones to transport the cargo buh ever since the SGR came about they have been shut out and leading them to run out of business.
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The report shows that warehouse and the entire logistics sector in the coastal region are collapsing due to the lopsided policy implementation.The report further indicates that the countrys economy especially at the coast is to shrink by 16.1% with Kenyans losing 8,111 jobs if the cargo is countinued to be evacuated by the SGR from the port interior losing 17.4 billion and 2,987 jobs which is equivalent to 8.4 % of its annual earning since the implementation of government policies which requires mandatory transfer of most cargo through the Madaraka SGR services to Nairobi since 2017.

Long distance drivers and allied workers union secretary Nicholas Mbugua said that the monpoly enjoyed by the SGR Freight service is unfair to other business.The report gives more negative effects of the SGR to the coastal economy than good.This negativity has lead to sesveral demonstrations with demostrators carring placards castigating the Kenya Ports Authority and the Kenya Revenue  Authority officials and walking for  more than 10 kilometres singing anti-govermental songs.Truck drivers joined hooting in unity while construction workers cheered them on.Local leaders including Mvita MP Abdulswammad Nassir and Benard Simiyu who is the acting chairman of the First Action community joined the protest to support and show their anger toward the policy.Even the Muslims for Human Rights official Francis Auma cliamed that the youth unemployment is on the rise due to the new policy.Image result for images of sgr demonstrations
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It is  crystal clear the standard gauge railway has done more good than harm to our countys and countrys ecomony contatry to the expectations of many Kenyans  who heard the governement giving praises to the SGR during its construction.A solution is quckly required to save the contrys economy and the many homes of Kenyans who  depend on the transportation business for their income.

Comments

  1. The harm is more,true, kama ingekuwa huko Turkana ama Baringo kwenye watu wanatembea kilometers kuenda shule na hosi ni sawa lakini hadi saa hii sioni the good... Great thoughts though

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  2. Mmmmh... I have never looked at it from this perspective... Thats some enlightening information

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  3. It has really affected the economy in mombasa

    ReplyDelete

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