Kenya's business leaders were optimistic that the country's economy would bounce back in the next 12 months boosted by COVID-19 recovery measures, according to a survey released by the country's central bank. The Central Bank of Kenya said its latest Monetary Policy Committee CEOs Survey showed that the optimism was mainly attributed to post COVID-19 bounce-back, companies shifting to more digitization, and anticipated increase in exports following improved relations in East African Community countries. Kenya, together with Burundi, Tanzania, Rwanda, South Sudan and Uganda, make up the East African Community which launched a common market in 2010. The survey also showed that services and manufacturing sectors saw the strongest prospects for higher growth as respondents reported a general upward trend in business activity. Despite the optimism, the business leaders were concerned over the possibility of a fourth COVID-19 wave in the country with the probability of new variants which would lead to more lockdowns and dampen investor confidence. The survey, which was conducted in May, targeted executives of 230 private sector firms in Kenya's key industries including agriculture, mining and energy, manufacturing, wholesale and retail trade, hotels and restaurants, information and communications technology, transport and storage, real estate, pharmaceuticals, building and construction, and finance and insurance. The central bank said sectors covered in the survey account for over 74 percent of Kenya's gross domestic product. The International Monetary Fund (IMF) said in mid-May that economic recovery is underway in Kenya and the easing of the COVID-19 third wave in the...

The visit by Burundian President Evariste Ndayishimiye may have added another brick to the reconstruction of the East African Community, which has looked feeble in the past as leaders targeted divergent interests. Mr Ndayishimiye attended the first Summit of heads of state in February, when the leaders agreed to elect Kenya’s Peter Mathuki as the new secretary-general. Incidentally, the EAC had looked weaker when held by Burundian Liberat Mfumukeko. In Kisumu, where President Uhuru Kenyatta hosted him for two days, they agreed to strengthen relations through “shared values and principles … and a united East African Community”. A communique issued from State Lodge in Kisumu showed the two countries had focused mainly on bilateral agreements, signing seven MoUs for political consultation, diplomatic training, agriculture and livestock development, sports cooperation, cooperative development, public service and tourism. EAC framework But they said most of them will be implemented within the East African Community framework. “The leaders exchanged views on various development matters in the East African Community (EAC) and reaffirmed their commitment to continue working together in championing the EAC integration agenda and 6th EAC Development Strategy and initiatives under the auspices of Comesa and the ICGLR,” they said, also referring to the regional common markets trading bloc and the International Conference on the Great Lakes Region, a peace initiative to restore stability in the Democratic Republic of Congo (DRC) and neighbouring countries. Mr Albert Shingiro, Burundi’s Foreign and Development Cooperation minister signed all the deal with Kenyan line ministers, which he...

The Kenya Transporters Association (KTA) has challenged the government to follow Uganda’s suit and give truck drivers free Covid-19 vaccinations regardless of their nationalities. KTA Chief Operating Officer Mercy Ireri said giving free jabs to truck drivers will play a key role in removing the logistics hurdles which are being experienced currently. Ms Ireri said since the start of the pandemic, truck drivers have continually served regional economies by delivering essential transportation services of medicines, food and other commodities even with the numerous challenges presented by Covid-19 protocols and risk to life. “KTA takes this opportunity to thank Uganda government’s initiative to give free Covid-19 vaccination to truck drivers regardless of their nationality and age across the borders into Uganda. Our conversation with Port Health Uganda indicate that when 80 percent of drivers crossing the border are vaccinated, they may be a chance to stop Covid-19 testing of drivers crossing the borders,” she said. “We hope the Kenyan government will soon prioritise and have enough vaccines for the Kenya long distance drivers who form the majority of drivers crossing into Uganda and other EAC region.” In a statement addressed to Kenya’s Ministry of Health, Ms Ireri urged East African Community government to consider the drivers as essential and vulnerable group which needs to be vaccinated in this first phase. “We appreciate the government’s efforts in ensuring the orderly vaccination of the most vulnerable sections of the society. We also understand that the total population cannot be vaccinated at the same...

The Central Bank of Kenya’s Chief Executive Officers’ Survey has found that Kenyan CEOs are most concerned about the rising cost of raw materials and fuel. According to them, these are the two major setbacks businesses in the country will have to grapple with in the next twelve months. The survey report, a copy of which was obtained by Business Elites Africa, explained that Kenya’s apex bank interviewed CEOs across 11 sectors of the country’s economy. The CEOs also expressed concern over the continuing negative impacts of the COVID-19 pandemic, high finance cost and heavy taxation. “The respondents cited the business environment (high prices of raw materials and low prices of manufactured goods; rising fuel prices); Covid-19 related concerns (another wave/variants which would cause more lockdowns and dampen investor confidence); business financing (including cost of credit, liquidity constraints, delays in government disbursements); and taxation (high taxes, delays in processing refunds),” said part of the report. Other key Takeaways from the Central Bank of Kenya’s CEOs Survey Respondents in the May 2021 CEOs Survey were optimistic about growth prospects in the next 12 months, for their companies, sectors, and the global economy. This optimism was mainly attributed to post COVID-19 bounce-back, businesses shifting to more digitization and anticipated increase in exports following improved relations in the East African Community (EAC) countries. The higher growth prospects were strongest in the services and manufacturing sectors where respondents reported a general upward trend in business activity. Growth prospects for the Kenyan economy were mixed. While there’s...

Globally, unequal distribution of Covid-19 vaccines has been identified as a major hinderance in the fight against the pandemic, specifically in the least development countries (LDCs) like Uganda. Concerns have been raised at the World Trade Organisation (WTO) about intellectual property (IP) to be a barrier in manufacturing, distribution and access of vaccines. A significant number of WTO member countries, especially LDCs are in support of a proposal to waive certain provisions of the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS) in relation to prevention, containment and treatment of Covid-19. According to the proponents of this proposal, IP protection is putting a barrier in ensuring rapid and safe access to vaccines and other medical products. In view of the current challenges posed by the pandemic, the architects of the proposal assert that it can only be effectively addressed by waving certain TRIPS obligations. This would help to avoid barriers to the timely access to affordable medical products including vaccines and medicines or to scaling-up of research, development, manufacturing and supply of essential medical products. Other countries, however, have expressed scepticism whether it is necessary to have a waiver at international level while some think the move undermines the ongoing collaborative efforts. Early in the month of May this year, the US promised to back the negotiations on the proposed call for waiver. This decision was welcomed by countries in support of the waivers and World Health Organisation (WHO). It is anticipated that the action by the US could bolster...

SUMMARY Kenya National Chamber of Commerce and Industry Thursday called for banks to raise lending to small businesses seeking to expand product lines. The appeal comes on the back of the chamber’s study showing majority of businesses are struggling to access credit since the onset of the pandemic mid-March last year. Kenya National Chamber of Commerce and Industry Thursday called for banks to raise lending to small businesses seeking to expand product lines and enter new markets on the back of disruptive coronavirus. The appeal comes on the back of the chamber’s study showing majority of businesses are struggling to access credit since the onset of the pandemic mid-March last year. The lobby’s president, Richard Ngatia said increased credit will allow businesses to diversify into areas such as personal protective equipment, online services, food retailing and logistics. “I encourage banks to consider moratoriums and give loans to businesses to revitalise export markets,” said Mr Ngatia. He was speaking during a forum to address challenges facing business on the back of Covid-19 that has led to the collapse of value chain. The chamber’s study conducted between November and December had shown that 58.8 percent of surveyed businesses reported decreased access to financing options. Reduced access to loans has slowed the ability of micro small and medium-sized enterprises (MSMEs) to reinvent themselves to avoid collapse owing to the disruptions of their markets and operations. Small businesses want to re-establish markets and value chains that had been broken at the peak of Covid-19...

President Museveni and other officials in a group photo after signing the Inter-Governmental Agreement (IGA) concerning the joint implementation of the road infrastructure on the territory of the Democratic Republic of Congo/State House Photo Uganda and the Democratic Republic of Congo-DRC have signed major agreements that will see the two countries bolster cross border trade, development and the stabilization of Eastern Congo. The signing ceremony that was held on Thursday at State House Entebbe, is a follow up to the meeting between President Yoweri Museveni and President Felix Tshisekedi that recently took place at State House Entebbe when he was in the country to attend the swearing ceremony of President Museveni. President Yoweri Museveni signed an inter-governmental agreement on behalf of Uganda while the Democratic Republic of Congo Deputy Prime Minister and Minister of Foreign Affairs Christophe Lutundula signed on behalf of the Democratic Republic of Congo. The signing was witnessed by the new Speaker of Parliament Rt. Hon. Jacob Oulanyah. On the same occasion, a Project Development Agreement was signed between the two countries on cross-border roads. The Permanent Secretary Ministry of Works and Transport Bageya Waiswa signed on behalf of Uganda while the DRC Minister of State for Infrastructure and Public Works Alexi Gisaro Muvunyi signed on behalf of the Democratic Republic of Congo. This was witnessed by the new deputy Speaker Anita Annet Among. The third PDA agreement was signed with the Dott Services Contractors and witnessed by DR Congo’s Presidential Advisor Bisere Fortunate. Speaking shortly after...

In theory, travellers need to present a COVID-negative test issued no more than 120 hours before travel – but in practice this is not enforced for small-scale traders Informal cross-border trade, which includes smuggling, is hugely important for survival in, around and beyond border regions. Across the border between Uganda and Democratic Republic of Congo (DR Congo) informal trade pays the bills and puts food on the table; it stocks the provision shops and pharmacies and it keeps youths out of trouble, communities on the move and people employed. This trade is carried out both through unofficial crossings (where goods are smuggled across the border) and over official border points – where goods are declared. Considered a legitimate source of livelihood this trade not only supplies the borderlands, but is also a vital supply line for the wider region. Different reasons account for the informality of cross border trade. These include cumbersome border procedures, shortages of particular commodities on either side of the border, and different taxation levels (with the consequent price difference offering attractive margins for smugglers). Added to these is corruption, and harassment of traders by state officials. For these reasons many traders avoid border controls altogether. Uganda’s central bank has been collecting data on undeclared goods passing through official border points. Between 2010 and 2018, Uganda’s informal exports to the DRC nearly doubled, from US$ 143.2 million to US$ 269.8 million. Given that formal exports to the DRC for those years respectively were US$ 184 million and...

Maputo, 18th May 2021: The Mozambique Revenue Authority (MRA), in partnership with TradeMark Africa (TMA), has delivered Personal Protective Equipment (PPE) which will be distributed to border authorities at the Mozambiquan and South African border of Ressano Garcia/ Lebombo. The delivery was witnessed by H.E. Taurai Tsama, Mozambique’s Customs Director General, H.E. Mrs. Nuala O’Brien, Ambassador of Ireland to Mozambique, and Mrs. Sarah Love, Deputy Director of Development at the British High Commission in Mozambique. The equipment provided include hand sanitizers, liquid hand washing soap, infrared thermometer, re-usable safety boots, full protective PPE, , reusable masks, plastic face shield, disposable gloves, hand sanitiser dispensers and disinfectant spray bottles This is part of TradeMark Africa’s wider support for mitigation measures against the spread of COVID-19 and continuous trade in Eastern and Southern Africa borders under its Safe Trade Emergency Facility Programme. Today’s symbolic handover will cover the needs of customs, immigration, security, and port health officials at Mozambique borders. Speaking at the ceremony, Sarah Love, Deputy Development Director at the British High Commission in Maputo said: “The UK is funding TMA in Mozambique and Malawi through the Safe Trade programme which is partnering with the Revenue Authority to implement measures to ensure that safe trade can continue during this COVID-19 pandemic. UK funding of £200,000 has enabled the purchase of Personal Protective Equipment for customs and border officials and the development of a joint emergency response to COVID-19 at these locations. This support will ensure a safe working environment for border...

KeNHA has commenced works to rehabilite the busy Busia-Kisumu highway much to the relief of motorists. The rehabilitation will ease traffic congestion on the trunk road which connects the border town of Busia to the Great Lakes Region occasioned by transit trucks that pile up awaiting clearance at the Busia One Stop Border Post (OSBP). This comes after intense pressure from commuters, traders and the County Government of Busia through Governor Sospeter Ojaamong. The scope of work will involve expansion and re-carpeting of the 40km highway from Amukura House to Ugunja in Siaya County. Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 20153 KeNHA revealed that the stretch between the Korinda junction and Busia One Stop Border Post will be made a dual highway. Ojaamong said it is a good start, noting that his Government is going to engage the British High Commission who initiated the project, US Ambassador to Kenya, Trademark East Africa and other willing donors so that the entire road can be constructed into a dual highway. “The Busia-Kisumu highway especially near the OSBP is in a pathetic state with county residents resorting to social media to condemn the County Government yet it’s managed by the National Government,” he said. With expansion works already in progress many businessmen whose structures had encroached on reserve land including some leading hotels risk being pulled down although those affected have already received a notice to move prior to the exercise. Read original article