Naivasha troubled as Mombasa gains in fight for port business
Ms Beatrice Rioba inside her shop next to the dry port in Naivasha on Tuesday last week.
One of President William Ruto’s actions as the new Head of State was to order the return of key operations from the Naivasha dry port to Mombasa.
He also vetoed the compulsory transportation of cargo through the Standard Gauge Railway (SGR) to Naivasha for clearance. These directives sparked celebration in the coastal city, where hundreds of jobs were lost when his predecessor’s 2019 directive was effected.
At the time, former President Uhuru Kenyatta explained that the new arrangement was aimed at reducing congestion at the Mombasa port while speeding up the transportation of cargo across the country.
Cargo owners and transporters were not pleased as it became more costly to transport cargo by rail.
Was the former President’s move wise? The answer depends on whom you ask. It is clear that the people who depend on the port of Mombasa for their livelihood have welcomed President Ruto’s directives.
How have these orders affected the people who have come to depend on the Naivasha Inland Container Depot (ICD)? Contrary to its name, the ICD is actually in Suswa, a sleepy urban centre in the outskirts of Narok town and approximately 65 kilometres from Naivasha town.
A few years ago, Suswa was a sleepy backwater only known for hosting a critical Kenya Power substation that fed the national grid with electricity from different sources across the country. The putting up of the ICD and plans for a special economic zone in the area helped jump-start Suswa’s sluggish economic engine and offered the small town hope of becoming one of the biggest industrial hubs in sub-Saharan Africa.
Its growth was not meant to benefit only big firms directly connected to port business; small scale businesses were also tipped to mint money by offering support services to thousands of workers at the ICD.
Now, with the new developments, this town risks joining the growing number of Kenya’s white elephants, which count in their ranks the Bura Irrigation Scheme and the Bus Rapid Transit system. Ms Beatrice Rioba embodies the hope that came with the ICD at Suswa; it saved her from a life of frustration and hopelessness as a jobless resident of Nakuru.
The Naivasha ICD (dry port) where cargo from Mombasa port was being transported to by the standard gauge railway train.
In July 2021, Ms Rioba gathered her life savings, borrowed some money from friends and family, and moved to Suswa. She set up what has been the only kiosk outside the Naivasha ICD for close to one year. The kiosk is in a rented container. Ms Rioba sells fast-moving consumer goods like milk, sugar, flour, cooking oil, and mineral water. For the time she has operated in Suswa and despite the tough economic conditions, business has been good. Workers employed by the Kenya Ports Authority (KPA), Mitchell Cotts, Mwango Huayi, and other companies have become reliable clients, mostly buying water, milk, and snacks during mealtimes. She also serves tourists who usually stop by to watch the construction of the port.
But things have changed in the past week. Her stock is not moving as fast as it used to.
“Business was good until President Ruto ordered the return of port operations to Mombasa. I am now stranded with dead stock, I do not know what to do. Very few trucks drive into or out of the ICD. It is as though the order to shift port operations put off even the tourists that we had become accustomed to seeing and serving,” Ms Rioba told the Nation.
She lives in Mai Mahiu, 35 kilometres from the dry port. A return trip costs her Sh200 every day. She could comfortably afford this in the one year she has done business in Suswa. But in the past week, she has not on any day sold enough goods to cover the cost of her commute.
Unlike Ms Rioba, for whom the ICD and the new railway offered a new lease of life, the only benefit Mr John Chege Wanjiku derives from the SGR is its overpass just outside Suswa town, which provides a good shade for his stall, protecting him from the sweltering sun.
Mr Wanjiku’s stall is located along the Nairobi-Narok highway, and a good chunk of his customers are travellers, especially truckers transporting cargo. Transport of cargo to Western Kenya via the SGR means less truckers on the road and, by extension, less clients for Mr Wanjiku’s business, which, like Ms Rioba’s, deals in fast-moving consumer goods.
“I do not see the benefit of the port and the SGR. It has reduced the number of cargo trucks along the highway. Many youths from Suswa had been employed as truck drivers, but they were laid off when the industry suffered a dip in business owing to the SGR. Maybe with the transport of cargo via SGR no longer compulsory, we shall now see more trucks and for people like me that means more clients,” the trader said.
Another sore point about the developments in Suswa centre on the ownership of Kedong Ranch. Mr Wanjiku understands the history of the controversy well, having been born and raised here. He even temporarily left his business to participate in the fencing of the hundreds of acres of the ranch together with several other locals. However, he soon returned to his business when the promised pay was inexplicably cut by half.
As we spoke with Mr Wanjiku, a group of his regular clients stopped by to buy water. They are also locals who own land in Kedong Ranch.
One resident, who introduced himself only as Mancha, said land in the area is in high demand as investors seek to set up energy projects.
“None of us will sell you land. Perhaps those at the foot of the hills, but not down here in the plains. The current value is Sh1 million per acre,” Mancha claimed. Kedong Ranch is located near the ICD. The value of its land was expected to rise when operations shifted to Suswa. However, locals have for years been at war with the owners, who accuse the firm of trying to grab their ancestral land.
Many herdsmen have been implicated in vandalism, as they cut off sections of the fence to sell to scrap metal dealers. Just last Monday, police dispersed a group who were attempting to invade the ranch.
The standoff has sparked tensions. During the 20 minutes the Nation team was at Mr Wanjiku’s stall, at least three people stopped by to find out what the crew’s mission was. They have every reason to worry. Four years ago, several residents were promised millions for the acquisition of their land so that the government could build the SGR. But they ended up being relocated further inland and houses made from recycled oil drums put up as compensation for their land. According to sources, the few who were paid received only Sh2,000, although on paper it says they were paid millions of dollars.
They accused state officials and local leaders of pocketing the funds. Despite the controversies connected to its origin, Suswa town has seen encouraging growth. Barely five years ago, the town only stretched two streets off one side of the highway. Either side of the highway now has four streets. Hardware dealers are making a killing from the construction, which never seems to stop.
Maragateway Resort, one of the newest hotels and which boasts the tallest building in the town, has hosted several investors who visit the port regularly. A worker who is not allowed to speak to the press told the Nation that the hotel had profited from local and foreign investors and its owners are not worried about losing too much business.
“The owners were looking to leverage on the port, but luckily for us the SGR has also attracted several tourists who sleep here. Suswa is also located on the way to the Masai Mara, and some tourists like to sleep here before proceeding to the game reserve. On some weekends we are at full capacity,” the employee said.
Eateries have been among the biggest beneficiaries of the port and the SGR. Many people come to Suswa town after finishing their business at the port. Bars and liquor stores also benefit. Dr Ruto’s directive has also caused concern among KPA staff working at the Naivasha ICD.
A senior manager said nobody at the facility is allowed to divulge any information to the press without express written permission from KPA’s Mombasa or Nairobi offices. However, he said, the construction of the port will continue and expressed confidence that business will pick up.
“In fact we are expecting two consignments this week. One from Grain Bulk Handlers and another from Mwango Huayi. They are among our most regular customers,” he said.
But one of his juniors said there is confusion among staff, who are not sure what will happen next.
The Naivasha ICD has two perimeter fences. The outermost one has not survived the wrath of vandals, who sell the metal to scrap dealers.
Wildlife is also a menace. Last Saturday, a rogue elephant stormed the facility and destroyed two gates and part of the inner perimeter fence. Engineers from Nairobi arrived on Tuesday to repair the damage.
Perhaps the lot that is the happiest about the directives are truck drivers. The dry port had robbed them of mileage allowance, which they are hoping will now be back as cargo owners return to road transport due to lower operation costs. Mr Peter Mwangi is an elated man. Before the shifting of port operations to Naivasha, he would do five or six trips to Kampala and Kigali every month. However, after the new arrangements, he said he was averaging two trips “which means more money in my pocket.”
