The Lower Eastern Times Opening The Third Eye
Kenyans seeking to transport vehicles between Nairobi and Mombasa using the Standard Gauge Railway (SGR) will now pay Sh100,000 per wagon, excluding Value Added Tax (VAT), following the introduction of new tariffs by Kenya Railways.
The charges, detailed in the corporation’s latest tariff schedule, are based on a standard rate of Sh215 per kilometre, exclusive of VAT. The fees are calculated per wagon and remain subject to the railway operator’s regulations.
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Kenya Railways said the revised charges are supported by the Government Owned Enterprises (GOE) Act, 2025, which grants the corporation independence to determine, approve and collect fees for its services, facilities and use of railway assets.
The corporation noted that tariffs may be adjusted periodically depending on prevailing market conditions, operating expenses, fuel costs, regulatory obligations and other strategic considerations, subject to the relevant approval procedures under the law.
It further clarified that VAT is not a fixed component of the charges and may change depending on applicable tax requirements.
The new tariff schedule became effective on June 1, 2026, and will remain applicable until Kenya Railways makes further amendments or withdraws it.
Apart from vehicle transportation fees, the corporation has introduced several other charges covering railway haulage and wagon operations.
Local haulage will attract a fee of Sh25,000 per wagon, while customers seeking stoppage or diversion services for local traffic will pay Sh7,500 per wagon.
For transit traffic, the corresponding stoppage or diversion charge has been set at $350 per wagon.
Kenya Railways has also introduced penalties for customers who fail to release wagons within the allocated free loading and unloading periods.
Under the new structure, customers will be charged $100 for every 24 hours during the first day after the free period expires.
The penalty will increase to $150 for every 24 hours between the second and fourth days, before rising to $200 per 24 hours from the fifth through the tenth day.
Customers who continue holding onto wagons beyond the tenth day will face an additional 10 per cent increase in demurrage charges every week until the wagons are released.
The new charges form part of Kenya Railways’ revised tariff framework governing the use of its railway services and infrastructure.
