The Standard Gauge Railway (SGR) is losing out business from tea firms because of the exorbitant transport rates from Nairobi to Mombasa.

Tea firms, especially the multinationals, have now opted to use road in transporting millions of kilos of tea arguing that it is 60 percent cheaper than using the train.

The move is likely to further complicate the loan repayment for the SGR.

Apollo Kiarii, the chief executive of Kenya Tea Growers Association (KTGA), said the last mile connectivity involved in transportation of the tea and the revised cargo rates have made the use of SGR too expensive.

“We have reached a point whereby we have decided to abandon the use of SGR because it does not make any economic sense to us given its expensive nature,” said Mr Kiarii.

Source: Business Daily

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