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Kenya’s border plan to boost trade with Ethiopia

By JACOB WALTER SUMMARY The Border Management Secretariat, a bilateral agency, said the OSBPs will enhance security, boost revenue collection and ease movement between the two countries. Kenya is set to build one-stop border points (OSBPs) along its border with Ethiopia in its latest effort to boost trade with the landlocked neighbour. The Border Management Secretariat, a bilateral agency, said the OSBPs will enhance security, boost revenue collection and ease movement between the two countries. “Putting two more OSBPs in Marsabit County will greatly boost trade facilitation and seal all the porous border points that encourage illicit trades,” said Mr Kennedy Nyaiyo, director of Border Management Secretariat. He spoke in Marsabit County on Wednesday when he led a multi-agency delegation to the office of Deputy Governor Solomon Gubo, for a courtesy call. Mr Nyaiyo said the team was currently assessing suitability of Forole and Illeret, the two sites proposed to host OSBPs in Marsabit County. Marsabit currently has only one OSBP in Moyale Town despite the fact that the Ethiopia-Kenyan border straddles over 830km of its territory. Other areas marked for OSBPs include Siftu in Wajir, Markamari, Rhamu in Mandera, Todunyang in Turkana. Mr Nyaiyo said the identified points will have heavy military and police presence to ensure observance of law and order in bandit-prone areas to safeguard livestock product markets. He called on the county’s trade department to begin monitoring the trade volumes and statistically gauge the economic growth as soon as the projects are complete. Marsabit County Commissioner...

Boost for Kenya–US trade in new air freight deal

In Summary •It is expected to boots trade after a slight drop on imports from the US in 2018, whose value dropped 7.2 per cent to Sh53.2 billion in 2018 , down from Sh57.4 billion a year earlier. •Kenya Airways cargo stands among the biggest beneficiaries having commenced direct flights between JKIA and JF Kennedy International Airport in 2018. Trade between Kenya and the US is set to benefit from a new aviation deal that grants direct cargo flights. The countries have revised their bilateral air services agreement, facilitating the expansion of air freight services. The new move strengthens the already existing passenger traffic rights that allows national carrier Kenya Airways direct flights between Nairobi and New York. The new deal, which revises the initial agreement signed in Washington on June 18, 2008, was signed by Transport CS James Macharia and US assistant Secretary of State for Economic and Business Affairs Manisha Singh. This was done on the sidelines of President Uhuru Kenyatta's visit to the US this week. “The revised bilateral air services agreement between Kenya and the USA will facilitate the expansion of air freight services, by allowing airlines from both countries to set up and operate air cargo hubs in either country,” CS Macharia wrote on Twitter. The rights in the amendment facilitate the movement of goods throughout the world by providing air carriers greater flexibility to meet their cargo and express delivery customers’ needs more efficiently, the US government notes. Specifically, the amendment allows U.S all-cargo...

Report: Africa Delivers Largest Profits on Investment

LONDON, UNITED KINGDOM - JANUARY 20: (Top L-R) South Africa's Minister of International Relations and Cooperation Naledi Mandisa Pandor, Ethiopia's Prime Minister Abiy Ahmend, Angola's President Joao Lourenco, Algeria's President Abdelmadjid Tebboune, World Bank President David Malpass, UN executive secretary of Economic Commission for Africa Vera Songwe and IMF Africa Director Abebe Aemro Selassie, (Middle L-R) Mauritius Prime Minister Pravind Jugnauth, Mauritania's President Mohamed Ould Ghazouani, Malawi's President Peter Mutharika, Britain's Business Secretary Andrea Leadsom, Kenya's President Uhuru Kenyatta, Guinea's President Alpha Conde, Britain's International Trade Secretary Liz Truss, Ghana's President Nana Akufo-Addo, Democratic Republic of Congo's President Felix Tshisekedi and Tunisia's President Kais Saied, (Bottom L-R) Britain's International Development Secretary Alok Sharma, Uganda's President Yoweri Museveni, Sierra Leone's President Julius Maada Bio, Senegal's President Macky Sall, Egypt's President Abdel Fattah al-Sisi, Britain's Prime Minister Boris Johnson, Rwanda's President Paul Kagame, Nigeria's President Muhammadu Buhari, Mozambique's President Filipe Nyusi, Morocco's Prime Minister Saad-Eddine El Othmani and Ivory Coast's President Alassane Ouattara pose during the family photo at the start of the UK-Africa Investment Summit on January 20, 2020 in London, England. The British PM is hosting African leaders and senior government representatives along with British and African businesses during the UK-Africa Investment Summit, aimed at strengthening the UK’s economic partnership with African nations. By CNN For Citizen Digital British companies have made bigger profits investing in Africa than in any other region of the world, according to a new report from the Overseas Development Institute (ODI), which urges firms to...

KRA enforces monitoring through RECTS

WRITTEN BY:Betty Kiptum Introduction of the Regional Cargo Tracking System has helped boost tax collection from customs by 17 per cent. Kenya Revenue Authority Commissioner for Customs and Border Control Kevin Safari said the system has ensured 90 per cent of cargo is checked and has reduced cases of cargo diversion. The system offers real-time scanning and inspection as well as transport information. This information is then used to track cargo in efforts to reduce cases of diversion. Also Read Kenya represented at global conference on urbanization in UAE The taxman hosted the Secretary-General World Customs Organization Dr Kunio Mukuriya who said Kenya is central in the regions supply chain and that a reliable cargo system goes a long way in ensuring that the transport time is reduced. KRA Commissioner for Customs and Border Control Kevin Safari said the overall aim is to make custom border checks redundant and in addition to eliminating opportunities for cargo diversion that existed due to border changeover processes when each country uses separate cargo tracking systems. Also Read Kenya represented at global conference on urbanization in UAE The system has integrated cargo tracking platforms across Kenya, Rwanda and Uganda meaning that KRA can track the cargo before it enters the country and after it leaves. Also Read Kenya represented at global conference on urbanization in UAE Source : kbc.co.ke

Northern Corridor deal set for review

In Summary The committee noted that there was a significant improvement of cargo transit time along the Northern Corridor following infrastructure initiatives undertaken in Kenya between 2013 and 2019. On infrastructure, the committee agreed to seek funds to improve roads especially in South Sudan, where less than one per cent of roads are in a good state according to the Northern Corridor Transit Transport Co-ordination Authority 2019 report. By ANTHONY KITIMO The 10-year-old Northern Corridor trade agreement will be updated by March to address emerging trade opportunities, meet current needs and boost regional trade. This was the main resolution of the 48th executive meeting of the Northern Corridor Transit and Transport Co-ordination Authority member states — meeting in Mombasa, Kenya recently. The member states are Kenya, Uganda, South Sudan, Democratic Republic of Congo, Rwanda and Burundi. “The revised draft of Agreement and protocols has been received and is awaiting a validation workshop in March this year before its submission to the Council of Ministers,” said executive secretary Omae Nyarandi. The revised trade agreement will include the use of Kenya’s Standard Gauge Railway, which was not there in 2007 when the agreements were being drawn up; joint funding of infrastructure such as roads, one-stop-border posts, motion weighbridges; and speed up implementation of the Customs Union Protocol by adopting a single window system for regional custom data transfer to end cross-border delays. Trade Mark East Africa has committed budgetary support of $393,000 for the recruitment of system developers to enhance the current...

Kenya-US free trade talks a big deal

By TONY WATIMA Kenya and the US are this week expected to kickstart negotiations on a free trade agreement. The US is an important trading partner and one of the most significant investors on the continent hence working towards securing a free trade pact is a big deal for Kenya since such partnerships are a means towards poverty alleviation, development and further integration into the world economy. But it would be premature for Kenya to pop the champagne bottle to celebrate a free trade deal with the US because such negotiations, especially reciprocal trade pacts like this one, take time to materialise. Though we should be hopeful that it will not take ten years since in five years’ time the African Growth and Opportunity Act (Agoa) deal - the current preferential trade agreement through which we access the US market - will be coming to an end and a second-generation trade pact has to be in place prior to that. It’s for this reason that the Kenya-US free trade agreement, if achieved, will be used as a model that can be replicated in other African countries.   Now, its my belief that the negotiations will start against the backdrop of the Agoa as the starting where Kenya mostly pitching about what has worked for her under Agoa and how can the limitations be addressed in the free trade agreement. The Agoa is a nonreciprocal preferential trade agreement that came into force in 2000 with the explicit goal of providing sub...

KRA: New technology cuts down cargo verification process

The installation of new scanning and verification points has made it easier and faster for the movement of goods on the highway. Kenya Revenue Authority (KRA) says this has reduced its cargo verification up from 10-50 percent and scanning of goods is at almost 90 percent, This is after installation of a new Integrated Scanner Command Centre (ISCC) by the taxman KRA’s Commissioner of Customs and Border Control Kevin Safari made the revelations when he hosted Secretary-General World Customs Organization (WCO) Dr. Kunio Mukuriya at the centre. ‘Since the inception of the new technology, we have greatly reduced the congestion and delays that were previously experienced at the collection points,” said Safari at the Times Towers, KRA’s headquarters. The technology has also helped to improve the security of the goods on transit as well as exposed and eliminated some dishonest KRA officials. From the central data centre, KRA can now monitor the movement of the goods electronically and avert any potential danger or risks to the cargos Dr. Mikuriya commended KRA for its state of the art technology. He said Kenya is key in the economic block for the eastern part of Africa. “Kenya is the centre of economic and business in East Africa, I applaud Kenya for joining the smart border trade, and by joining the fast-growing global technology that is embraced worldwide, Kenya’s progress in technology is good for business in the region,” said Dr Mikuriya. The visit comes hot on the heels of recently concluded the Middle...

East African Trade and Policy Experts join forces to spur business in the EAC

By CORRESPONDENT, ARUSHA, Tanzania, Feb 3 – The East African Business Council (EABC) in partnership with the Federation of German Industries (BDI) has convened trade and policy experts from the EAC Partner States in Arusha, Tanzania; to chart out a joint regional policy advocacy agenda so as to spur business across EAC borders.  Enhancing collaboration and creating synergies among the East African Business Council, National Apex Business Associations and Chambers of Commerce in the regional is important towards informing and harmonizing policy advocacy initiatives that reflect business challenges experienced at national level.   “Voicing barriers and proposing solutions on boosting trade, in one voice as the East African business community reinforces our advocacy efforts towards improving the business environment in the EAC,” said Dr. Peter Mathuki, EABC CEO in his opening remarks.  Dr. Mathuki urged the experts to analyze the implications of new dynamics such as the BREXIT and AfCFTA towards East African businesses and craft solutions on boosting intra-EAC trade to 30 percent. He said concerted advocacy efforts are needed to fast track the finalization of the comprehensive review of the EAC Common External Tariff to boost industrialization and regional value chains.  The regional policy advocacy agenda aims to harness the economic potential of the EAC by analyzing trade and investment barriers blocking businesses to take full advantage of the EAC Customs Union and Common Market.  The experts mention operationalization of the EAC Trade Remedies Committees; harmonization of customs & domestic taxes; elimination of Non-Tariff Barriers; harmonization of Standards & SPS Measures; Open Skies...

Kenya-EU ties will grow stronger despite Brexit

On January 31, 2020, the United Kingdom (UK) left the European Union. We lost a member of our family. It was a sad moment for us, for European citizens – and, indeed, for many British citizens. Nevertheless, we have always respected the sovereign decision of 52 per cent of the British electorate, and we now look forward to starting a new chapter in our relations.  Emotions aside, February 1 turned out to be historic, but also undramatic. This is largely thanks to the Withdrawal Agreement that we negotiated with the UK, which enabled us to secure ‘an orderly Brexit’. One that – at least for now – minimises disruption for our citizens, businesses, public administrations – as well as for our international partners.Under this agreement, the EU and the UK agreed on a transition period, until the end of 2020 at least, during which the UK will continue to participate in the EU’s Customs Union and Single Market, and to apply EU law, even if it is no longer a Member State. During this period, the UK will also continue to abide by the international agreements of the EU, as we made clear in a note verbale to our international partners. So, with the transition period in place, there is a degree of continuity. This was not easy given the magnitude of the task. By leaving the Union, the UK automatically, mechanically, legally, leaves hundreds of international agreements concluded by or on behalf of the Union, to the benefit of its...

UN raps Uganda, Rwanda over trade

UNITED NATIONS, Sunday ” U.N. experts accused Uganda and Rwanda on Friday of refusing to provide straight answers about their role in an illegal trade in minerals plundered from the neighbouring Democratic Republic of Congo. UNITED NATIONS, Sunday ” U.N. experts accused Uganda and Rwanda on Friday of refusing to provide straight answers about their role in an illegal trade in minerals plundered from the neighbouring Democratic Republic of Congo. The expert panels report surfaced as all five governments of Africas Great Lakes region assured the U.N. Security Council of their continuing support for a long and costly internationally backed campaign to bring peace, stability and development to the war-torn zone. Uganda is suspected of facilitating the illegal export of Congolese gold while Rwanda is believed to be helping smuggle out tin ore, but both countries provided erroneous information when asked about their activities, the experts said. Despite a U.N. arms embargo, deficiencies in weapons marking and record-keeping requirements have made it virtually impossible to track the arms trade in Congo, the experts said, calling on Congo to set up its own arms marking system. Source: New Vision