Archives: News

CS Munya extends term of standards taskforce by 3 months

Agriculture Cabinet Secretary Peter Munya has extended the term of a task force formed to spearhead reforms on standardisation of goods in the fight against counterfeits. The Standards and Quality Infrastructure Reforms Taskforce that Mr. Munya appointed on November 15, 2019, while he was Trade Minister, is chaired by Mr. Wachira Maina. It was appointed for a period of two months so it was expected to have completed its work by January 15. But in a January 14 Gazette notice, Mr. Munya extended the team's term by three months, effective January 15. GOALS The taskforce is undertaking a comprehensive review and evaluation of weaknesses and shortcomings of Kenya's standards and quality infrastructure It is analysing the system's policy as well as legal and legislative frameworks of relevant institutions and agencies. The terms of reference state that members are to "review and evaluate weaknesses in inter-agency coordination in the standards enforcement ecosystem. They are also to "review adequacy of the capacity level of various institutions or agencies covering human, financial and other resources, for purposes of ensuring efficient implementation of their mandate". KEBS EVALUATION The 11-member team with four joint secretaries is looking into organisations including the Kenya Bureau of Standards (Kebs). According to its terms of reference, it will submit a report recommending evaluation of Kebs' internal weaknesses, its mandate and functions. The team will also recommend the evaluation of inherent conflicts of interests in the operational structure at Kebs and other agencies involved in defining, monitoring and enforcing national...

Kenya, Rwanda seek elite foreign investors

Kenya’s President Uhuru Kenyatta at the London Stock Exchange. The country’s $40 million debut green bond received a lukewarm reception. PHOTO | FILE | NATION MEDIA GROUP Kenya and Rwanda are hoping to expose the East Africa region to sophisticated foreign investors after floating two bonds on the London Stocks Exchange (LSE) last week. However, Kenya’s $40 million debut green bond received a lukewarm reception with no trading recorded in the first week. While the cross-listing of the bond was intended to expose investors to a deep market that is significantly liquid, the issue has failed to generate interest from investors with LSE market statistics reflecting zero trading. Trading of the bond by Nairobi-based property developer Acorn Holdings has been flat in the secondary market. The World Bank floated a $40 million Rwandan Franc bond that offers investors an annual coupon of 9.25 percent payable in US dollars when it matures in 2023. The World Bank intends to raise funds to invest in government bonds issued in the local market. Source: The East African

Tanzania and India vow to strengthen bilateral ties

Speaking at the event to mark 71 years of India’s independence at the weekend, deputy minister for Foreign Affairs and EA Cooperation Dr Damas Ndumbaro said Tanzania and India were brotherly nations and will see to it that the ties remain cemented. "Tanzania and India had long time excellent ties that began during the period of the Father of the Nation, Mwalimu Julius Nyerere and India’s Jawaharlal Nehru, the ties that have strengthened social, economic and political development,” said Dr Ndumbaro. Currently the economies of both countries have been growing spurring the strengthening of diplomatic ties between the two. India has been a good development partner for Tanzania in various sectors including tourism, water, health, technology and education. India’s assistance in the water sector has enabled the distribution safe and clean water in the city of Dar es Salaam as well as expansion of water treatment plant in Zanzibar. In the education sector, Tanzania and India have signed the agreement to cooperate in building a technical centre and provide assistance for developing universities in Zanzibar that target in the provision of skills targeting women with low education. For his part the Indian High Commissioner in Tanzania Amb. Shri Sanjiv Kohli thanked Tanzania government for the solidarity it has been extending to India saying the unity has been a stimulus for the development of the two nations. "We must remember that union is strength and our goal is to live in peace, harmony and solidarity for the economic growth of our...

$12 million to be invested in bridges construction on Lake Kivu

Rwanda Transport Development Agency (RTDA) has announced that in partnership with TradeMark Africa ( TMA), $12 will be invested in the construction of bridges across Lake Kivu in a bid to promote transport and facilitate trade. Residents of the five districts that touch on Kivu Lake said they have to cross the lake on a daily for different activities but that the travels last so many hours, some of them even spending the night halfway. All that is attributed to the lack of infrastructures including ships and bridges. Residents of Rubavu, Rutsiro and Rusizi told Radio Rwanda that having ships to allow them to cross over as well as ports, it would facilitate them enormously. Rutavogerwa Mussa, a resident of Rutsiro district said "There is a tourist ship which travels daily from Cyangugu to Rutsiro. It would be a great addition to our lives if we had one too as we would be able to travel to Cyangugu in 4 hours instead of 12." Rubavu and Rusizi residents requested more ships to avoid spending the night midway. Munyurwa Robert, a resident of Rubavu district said that some travelers, for fear of spending the night midway, choose to pass by the Democratic Republic of Congo to reach the Rusizi district. He said that with identification papers, you can take Rubavu-Goma-Bukavu-Rusizi route and that it is the shortest route. "cement, sand, alcohol and coal merchants use Goma-Bukavu-Rusizi route to reach Kamembe and it is very costly." Baziruwiha Valens said that due to...

Epower Forum highlights the importance of digital transformation

The Epower forum, recently hosted at Nairobi’s Movenpick Hotel, unfolded the key issues regarding the way in which E-commerce can enable cross border trade for women in light of the African Continental Free Trade Agreement (AFCFTA). In attendance were over 150 women owned SME’s. The basis of the event touched on how cross border trade can be made simpler, more cost effective, whilst creating new business opportunities and enhancing social development. This comes at a time where the advancement of technology is at an unprecedented level. Eric Wainaina, from Africa’s talking, said “It is annoying to hear, that Africa is not at par with the rest of the world concerning technology. It’s not true” With regards to how E-commerce is relying on technology, it was made increasingly clear that the uptake of more technology will allow for seamless patterns, instead for operating in a fragmented manner, ensuring more out of the value chains. This was emphasized by Gloria Atuheirwe, Director Women in Trade East Africa, “ICT to facilitate trade, automating and making trade easier. ICT to be the building blocks for improving outreach, processes and efficiency”. Outlining trade issues from two perspectives, barriers and cost of trade, alluding to how technology can ease up those processes. Through the inception of the Epower forum, women globally have learnt how to plug into E-commerce learning to harness the power of internet skills. Source: CIO East Africa

Shot in the arm as Lapsset becomes AU project

The Lamu Port-South Sudan-Ethiopia-Transport (Lapsset) corridor project got its biggest boost yet after it was adopted as an African Union project. INFRASTRUCTURE It will be redesigned to link the Sh32 billion Lamu port on the shores of the Indian Ocean to the Douala port in Cameroon, on the Atlantic Ocean. The project will be implemented in two phases — starting with the Lamu-Isiolo-Addis Ababa-Djibouti route before embarking on connecting Lamu to Kribi/Douala via Juba and Bangui. The announcement has given Nairobi the much needed boost for its flagship multi-billion-dollar infrastructure project that has dragged on for years. Speaking during the signing of a memorandum of understating between Kenya, Ethiopia and South Sudan in Mombasa, AU High Representative for Infrastructure Development Raila Odinga said the organisation had adopted Lapsset as a continental project and this would now see it get implemented under the AU. “This project will now not only connect Kenya with Ethiopia and South Sudan, but with other West Africa countries once it is completed. As an AU project, it will link with other continental corridors such as East Africa Northern Corridor, East Africa Central Corridor and provide a land bridge through the African Great Lakes region,” Mr Odinga said PARTNER COUNTRIES The three countries signed the MoU that will now help the project to facilitate its infrastructure development and funding. Attending the three-day meeting were prospective financiers of the project, the African Development Bank (AfDB), a boost for the project that has so far been funded only by...

How logistics, system hitches are hurting trade

Importers paid Sh3.22 billion in cargo storage charges at Kenya Ports Authority(KPA) facilities in 2017-18,data by the Shippers Council of Eastern Africa(SCEA) shows. This is despite the much publicized 'improved cost of doing business' pegged on investments in infrastructure, automation of systems and digitization of government services, improved cargo handling and speedy evacuation of cargo from Mombasa. KPA prides itself of year-on-year improvement in cargo handling capacity, ship-turn-around time and dwell time at the port. The Standard Gauge Railway(SGR) has also been lauded as a game changer in the country's logistics space, while Kenya Revenue Authority(KRA) and other state agencies have continued to invest heavily in systems to improve the business environment. In the latest World Bank Ease of Doing Business-2020, released last October, Kenya was ranked 56 globally on attractiveness to investors, having improved five positions. "Kenya is among top reformists in Africa and the World. This takes good leadership and coordination between agencies," said Augustine Langyintuo of World Bank finance competitiveness and innovation regional focal point. "I encourage Kenya to continue with these reforms," he added. However, the logistical space requires more attention  to support growth of the GDP, according to industry players, as numerous challenges continue to affect international trade. Clearance Cargo clearance is one of the biggest challenges that needs to be addressed to spur trade, according to traders. While cargo dwell (time taken to clear) at the Port of Mombasa has reduced from an average 4.2 days in 2018, to 3.9 in 2019, and eight...

Sh300m restoration of Busia-Kisumu road starts this week

The expansion of a section of the busy Busia-Kisumu highway starts this week, Busia Governor Sospeter Ojaamong has said. The British government is funding the Sh300 million rehabilitation of the section between the One-Stop Border Post in Busia town and Korinda in Matayos, Ojaamong said on Friday. “The British government has availed Sh300 million for expanding the Busia-Kisumu highway from the One-Stop Border Post to Korinda," the governor told Mulembe FM. The potholed condition of the regional road has ignited many complaints. It is also too narrow. "The contractor will be on sight within a week to start the rehabilitation,” Ojaamong said. The road will be a dual carriageway for an easier flow of traffic to Uganda. “This is a regional road from Busia to Kisumu and it is not the responsibility of the county to maintain,” the governor said in response to complaints that his administration had failed to maintain it. Four years ago, British High Commissioner to Kenya Christian Turner assured the county administration of his government's preparedness to rehabilitate infrastructure in the county. Source: The Star

Railways crucial for transport sector

URC has started moving local cargo from Tororo to Kampala. Currently, URC is averaging 18,000-20,000 tonnes per month. In 2018, Uganda Railways Corporation (URC)took possession of the concession assets from Rift Valley Railways (RVR) and started operating the metre-gauge. URC cited RVR’s failure to perform as stipulated in the concession agreement to terminate the concession. Stephen Wakasenza, the chief commercial/ concession officer, says at the time of the takeover, railway transport in Uganda was in a mess. “We are now on track and the future is bright,” he says. He says at the take-over, RVR was only transporting goods on the northern Corridor, because it was not in its interest to move in the Southern Corridor. “It did not make business sense because it was not a profitable route. But as URC, we are looking at the bigger picture. We need to have alternative access to the sea. It is, therefore, in our best interest to have the Central Corridor and the Northern Corridor Operating,” Wakasenza explains. In June 2018, URC started movement on the central corridor and is now moving an average of 6,500 tonnes per month. URC has started moving local cargo from Tororo to Kampala. Currently, URC is averaging 18,000-20,000 tonnes per month. “Our biggest clients are Grain Bulk Haulers Ltd, Roofings Ltd, World Food Programme and Seroma Ltd. But at the time we took over, there was neither a Central Corridor nor local cargo,” he says. To open the Southern Corridor, URC repaired the line from...

Government Revives Nairobi-Nanyuki Railway Line As Repair Works Commence

The  Rehabilitation  works  of  the 240-kilometre old Nairobi-Nanyuki railway line has commenced in Laikipia with the goal of spurring economic growth in Central Kenya. The Sh.3 billion rehabilitation  works of the metre-gauge railway line expected to be completed in five months are being undertaken by Kenya Railways Corporation which has already injected Sh.1 billion while the remainder will be provided by the National government. The  Laikipia Governor, Ndiritu  Muriithi  while briefing the press at his Nanyuki office on Tuesday said that that the works  would be undertaken in three stages in order to speed up the process and have the railway line ready for use by the end of May this year. “Rehabilitation is in three stages; one group will work from Nanyuki-Marua section, the second group is allocated the Marua-Sagana section while the third will rehabilitate from Sagana-Thika stretch,” Governor Muriiithi said. He  said among the beneficiaries of the revival of the line would be the 11 million litres Nanyuki Petroleum depot operated by  Vivo Energy that serves parts of Eastern and Northern Kenya. “We want to see the large fuel trucks taken of the roads for its safer and cheaper when fuel is moved by rail,” the Governor said. A spot check at the Nanyuki terminus revealed that works had commenced with local youth who had been contracted by Kenya Railways to clear bushes along the line before engineering works could be carried out. Governor Muriithi added that cohorts from the National Youth Service (NYS) and technicians from...