By Benadeta Mwaura - Reporter
Kenya, July 13, 2026 - Kenya's Standard Gauge Railway (SGR) recorded a strong rebound in freight transport during the first half of 2026, with cargo volumes increasing by 12.3%, driven largely by rising exports following China's decision to grant duty-free access to most Kenyan products.
Data released by the Africa Star Railway Operation Company (Afristar) shows the railway transported 4.3 million tonnes of cargo between January and June 2026. During the six-month period, the SGR operated 3,931 freight trains, reflecting growing demand for rail freight as exporters moved goods between Nairobi and the Port of Mombasa.
The increase comes just two months after China implemented its landmark zero-tariff policy on 98.2% of Kenyan exports on 1 May, a move expected to deepen trade ties between the two countries and improve the competitiveness of Kenyan products in the Chinese market.
According to Afristar, export-bound container traffic recorded the sharpest growth. Shipments from Nairobi to the Port of Mombasa surged by about 44% in May and June compared to average monthly volumes recorded earlier in the year, indicating that exporters are increasingly taking advantage of the expanded market access.
The preferential trade arrangement covers some of Kenya's leading agricultural exports, including tea, coffee, avocados and macadamia nuts, products that previously attracted import duties of between 4% and 25% before the tariffs were eliminated.
The removal of these duties is expected to lower export costs, improve price competitiveness and stimulate higher export volumes to the world's second-largest economy.
The improved cargo performance also highlights the growing role of the Standard Gauge Railway in supporting Kenya's export logistics. Since its launch, the SGR has become a critical transport corridor linking the Port of Mombasa with inland cargo terminals, reducing transit times and easing pressure on the road network.
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The government has consistently positioned the railway as a key pillar of Kenya's trade and industrialisation agenda, arguing that efficient freight transport will strengthen regional supply chains while lowering logistics costs for manufacturers and exporters.
China remains one of Kenya's largest trading partners, although the relationship has long been characterised by a significant trade imbalance. Kenyan exports to China have historically lagged behind imports, contributing to a widening trade deficit. The new duty-free arrangement is expected to support the government's efforts to expand export earnings while narrowing that gap.
However, economists caution that preferential market access alone may not be sufficient to transform Kenya's export performance. They argue that exporters must still overcome structural challenges such as high electricity costs, expensive logistics, limited value addition and compliance with China's strict quality, food safety and traceability requirements. Without addressing these constraints, Kenya may struggle to fully exploit the opportunities created by the new trade arrangement.
The latest SGR cargo figures nevertheless point to growing confidence among exporters and reinforce the railway's strategic importance in facilitating trade. If export demand continues to strengthen under the duty-free framework, freight volumes on the SGR are expected to rise further in the second half of the year, providing a boost to Kenya's export-led growth strategy.