KENYA'S FLAGSHIP PROJECT(SGR) BEING A THREAT TO MOMBASA ECONOMY .

The Kenya Standard Gauge Railway (SGR) so far is the biggest transport infrastructure project in Kenya's history.

                    GOGGLE PHOTO //COURTESY
                   
    The SGR phase running from Mombasa to Nairobi  seeks to provide inexpensive and efficient mobility of cargo and passengers hence a benefit to the country .

The positive effects of the SGR project to the economy includes ;

1)Job creation.
From individuals employed in the construction sector, to the 2,285 staff from diverse professional backgrounds working at the 33 stations and in the passenger and cargo rolling stock, the project has generated numerous job opportunities.
Others include indirect job creation through entrepreneurship opportunities posed by the need for goods and services by SGR employees and passengers including catering, and entertainment among many others. Spending by these employees is set to create ‘income effects’ on the economy.

2.) Increased industrialisation
Immense opportunities for construction the related industries have arisen as demand for materials such as cement, steel, stone, aggregates and glass required for construction of the line and stations increases.

3.) Reduced cost of doing business
40% of total cargo charges.
With the SGR, transport costs have dropped significantly owing to economies of scale since a single train has the capacity to haul 216 20-foot containers in a single trip, which would otherwise require the engagement of 108 trucks.
Travel time has reduced while accidents and cargo pilferage common in road transport has been eliminated all which translate to lower cost of doing business.

Despite the positive impact to the economy it is a threat to Mombasa county economy. Below are some of the negative effects.

1)Collapse of towns.
SGR edges out trucks in long distance cargo transport ,market centers and towns heavily reliant on trucks for business opportunities will be in danger of economic downfall as establishments such as loggings ,hotels garages collapses due to lack of customers. This would also affect shop owners ,mechanics oil recyclers and waiters forcing them to migrate or change profession which is costly and time consuming.

2)Increased debt.
SGR is set to be key catalyst for economic growth,though it is funded at a cost of sh 1.023 trillion , without interest. This has forced the gorvement to roll out measures to boost revenue collection for loan repayment such as introduction of VAT on zero rated items - raising the cost of living. Mombasa lost sh17.4 billion since SGP order ,Mombasa economy will shrink by 16.1 percent with 8111 jobs lost if all cargo is evacuated by SGR from the port .SGR a threat

3) Involuntary resettlement .
This is due to the infrastructure development . Although those who suffer displacement are adequately compensated ,moving from one place to start life afresh in another location can be a daunting task .

4) Danger to the environment.
Construction phase resulted in destruction and loss of agricultural crops ,natural vegetation and water bodies hence a loss to the economy on agricultural products.

5) Market disruption.
Due to reduced travel time and costs,with safer travelling conditions SGR has been preferred over truck and buses , diminishing business and loss of income for truck and bus owners and job loss for drivers turn boys and track loaders .