Kenya’s Standard Gauge Railway Freight Traffic Jumps 44% After China’s Zero-Tariff Move

MOMBASA, Kenya — July 13, 2026. Benefiting from China’s comprehensive zero-tariff policy on 53 African countries with diplomatic ties, effective May 1, Kenya’s Standard Gauge Railway (SGR) has recorded a significant increase in freight traffic in the first half of this year, offering a vivid illustration of the policy dividend in East Africa.

According to the latest data released by the Africa Star Railway Operation Company, which operates the line, the SGR ran a total of 3,931 freight trains in the first half of 2026, moving 4.278 million tonnes of cargo. Average daily freight volume rose 12.3% year-on-year. More notably, in May and June — the two months following the tariff cut — the average monthly container traffic from Nairobi to Mombasa surged by approximately 44% compared with the beginning of the year.

The zero-tariff policy covers 98.2% of Kenya’s exports to China, including key products such as tea, coffee, avocados and macadamia nuts. Previously, many of these products faced tariff barriers ranging from 4% to 25%. The removal of duties is expected to significantly lower export costs and enhance the competitiveness of Kenyan goods in the Chinese market. Kenya had previously run a trade deficit with China estimated at about 4.2 billion shillings, and the zero-tariff measure is expected to help narrow that gap.

As a vital transport artery linking Kenya’s interior with the port of Mombasa, the SGR has taken on an even more critical logistical role since the policy took effect. Export goods are moved from Nairobi via the SGR to the port of Mombasa for shipment to China. The sharp increase in freight volumes demonstrates that tariff reductions are tangibly translating into higher trade flows. However, business leaders and economists also caution that Kenya still needs to address structural bottlenecks such as high logistics and electricity costs, while meeting China’s stringent quality, safety and traceability standards, in order to fully seize the expanded market access opportunity.

This tariff initiative makes China the first major economy to implement unilateral, blanket zero-tariff treatment for all African countries with which it has diplomatic ties. The strong performance of SGR freight data provides early evidence of the policy’s effectiveness, and points to a new phase in China-Africa trade relations.