Kenya Railways Introduces Sh100,000 Fee for Transporting Vehicles on SGR

Kenya Railways has introduced a new fee of Sh100,000 for transporting vehicles between Nairobi and Mombasa through the Standard Gauge Railway (SGR). This fee is per wagon and excludes Value-Added Tax (VAT). The new tariffs are part of the corporation's tariff book, which outlines a base rate of Sh215 per kilometre, excluding VAT. The fees are subject to railway operational regulations and apply per wagon.

The new tariffs are anchored in the Government Owned Enterprises (GOE) Act, 2025, which grants Kenya Railways autonomy to set, approve, and collect charges for its services, facilities, and use of its assets. According to the corporation, the tariffs may vary from time to time, based on market conditions, operational costs, fuel price changes, regulatory requirements, and strategic considerations.

Other charges outlined in the tariff book include a local haulage fee of Sh25,000 per wagon and Sh7,500 for stoppage or diversion involving local traffic. For transit traffic, the stoppage or diversion fee is set at $350 per wagon. The corporation has also introduced penalties for customers who keep wagons beyond the stipulated free periods for loading and unloading.

The penalties for customers who keep wagons beyond the free periods are as follows: $100 for the first 24 hours after the free period expires, rising to $150 per 24 hours from the second to the fourth day and $200 per 24 hours from the fifth to the tenth day. The demurrage charges will increase by 10 percent every week after the tenth day if the wagon has not been released.

The tariffs and other charges outlined in the tariff book took effect on June 1, 2026, and will remain in force until amended or withdrawn. Kenya Railways noted that VAT is not fixed and may change from time to time. The corporation's tariff book provides a detailed breakdown of the charges and fees applicable for various services.

The introduction of the new tariffs and fees is aimed at enhancing the efficiency and effectiveness of the SGR services. Kenya Railways is targeting car dealers with the new SGR freight service, which is expected to provide a convenient and cost-effective way of transporting vehicles between Nairobi and Mombasa.

The new tariffs and fees introduced by Kenya Railways are part of the corporation's efforts to improve its services and increase revenue. The corporation is also working to address weaknesses in procurement and land acquisition that inflated Kenya's SGR costs by Sh116bn.

Key points

• The new tariffs and fees introduced by Kenya Railways are part of the corporation's efforts to improve its services and increase revenue.
• The corporation has also introduced penalties for customers who keep wagons beyond the stipulated free periods for loading and unloading.
• The tariffs and other charges outlined in the tariff book took effect on June 1, 2026.