Wednesday, 7 November 2018

Why you should invest in Naivasha


When Uganda announced that it had dropped plans for an SGR (Standard Gauge Railway) and that they will rehabilitate the old narrow Metre Gauge Railway (MGR), it became evident that Kenya had to scale down its SGR ambitions, at least in the near term!

Kenya plans to complete its SGR from Mombasa to Naivasha by mid-2019, after which the focus should shift to maximizing value for the SGR.
How to increase and maintain Mombasa Port attractiveness to Uganda, Congo, South Sudan, Rwanda, Burundi etc, using a combination of SGR, MGR and road haulage, is now the immediate guiding questions for Kenya.

Developing a major ICD at Suswa (Naivasha) and linking it with the MGR (say at Longonot), will create an ideal and effective convergence of the three modes of transport at Naivasha.
If indeed Uganda will upgrade its MGR network, Kenya will likewise modernise its MGR section from Naivasha to Malaba. This will increase service assurance and safety. A redesigned road access from the Naivasha ICD to the main highway will also be necessary.

The final product will be a Naivasha logistics hub of choice handling transit imports and exports, and also exports/imports for western parts of Kenya, Rwanda, Burundi, Congo, Uganda, South Sudan etc.
Travel distances by importers/exporters will be shortened, and specifically the Nairobi ICD clutter and city congestion will be avoided.
Next is Kisumu for the waterway connection with Tanzania and Uganda!
My Opinion: Go for it. Invest huge and capitalize on current low property prices in Naivasha. It’s the next big thing

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