President Uhuru Kenyatta has said he is committed to creating a conducive environment for private businesses to thrive. He said this will attract investments and promote job creation. "The private sector is the engine of growth. Government certainly plays a central role,” Uhuru said. The President spoke in Mombasa on Wednesday during the Kenya-Uganda Business Forum that was also addressed by Ugandan President Yoweri Museveni. The forum, whose theme was 'Strengthening Economic and Trade Partnerships', was attended by Deputy President William Ruto. The forum was an opportunity to boost business, trade and investment between Kenya and Uganda. Uhuru said Kenya and Uganda enjoy thriving economic and trade relations.  Kenya’s value of total exports to Uganda stood at Sh61.8 billion in 2017 while the total bilateral trade was Sh103.8 billion, he said. "We therefore need to put together the necessary measures to enhance this partnership for the benefit of our people," the President said. Uhuru said Kenya and Uganda have resolved to partner in developing first class infrastructure under the framework of the Northern Corridor Integration Projects (NCIP). Museveni said it was clear that the private sector was the vehicle that would create wealth for the two countries. “It is this wealth which will create the much needed jobs in our two countries,” he said. He said for the private sector to operate successfully it needs a stable local and international markets, adding that the most important enabler for the both is good infrastructure. While assuring the private sector of cheaper...

At least four people are reported to have died, with hundreds hospitalized over complications associated with stomach pain, vomiting and diarrhoea after consuming a cereal supplied by the World Food Programme (WFP). The issue of food poisoning should not be treated as an isolated incident localised to Amudat or Uganda, East Africa and Africa. In 2009, hundreds of tonnes of maize and other assortments of genetically engineered foods were impounded in Mombasa, a lot of powdered milk and other relief items had been supplied as humanitarian aid, in what is today popularly known as the cancer belt of Kisumu. Attempts to explain away the damaging effects of genetically modified organisms (GMOs) in Kisumu have taken other twists, most commonly that the people in the cancer belt of Kisumu ate maize contaminated by afflatoxins. Because of the high stakes and power of the actors, the Kisumu incident and that of the GMOs intercepted on Port Mombasa seem to have been swept under the carpet and life allowed to continue. A few years ago, there was a related incident in Haiti in which a number of people died of the same conditions similar to what has just happened in Amudat. The CNN blamed the cholera outbreak on the UN soldiers, effectively sweeping the real problem under the carpet in Haiti. The world of scientific literature is awash with research published in peer-reviewed journals indicating how cattle, pigs, rats, etc., have died soon after feeding on GMOs. It is imperative that rigorous tests...

Kenya's Uhuru Kenyatta and Yoweri Museveni of Uganda have renewed their efforts to promote trade and sustain peace between their two countries. Addressing a joint press briefing at State House Mombasa on Wednesday, the Presidents noted their desire for joint cooperation on the standard gauge railway and said a team would review the plan. Without giving details of the plan, President Museveni praised his counterpart on the rail transport initiative, saying it had prevented Uganda from suffering inconveniences. Mr Museveni said the SGR solved Uganda’s “perennial problems of delays” at the Mombasa port, where cargo is concerned. “Before Uhuru’s time, some people at the port thought they were doing Uganda some favour by clearing their cargo, not knowing they were sabotaging the economies of the two countries. But now we are celebrating the intervention by President Kenyatta,” he said. “With reinforcement for inter-land economy, we are looking forward to the extension of the SGR. I know that once completed it will take 24 hours to Kampala," he said. Mr Museveni added that the two countries would also work to reduce their trade deficits through import substitution and export promotion "to stop enriching foreign countries". Uganda is pushing for Kenya's commitment on the Kisumu-Malaba railway line so it can secure funding for its Kampala-Malaba line. Mr Kenyatta said the SGR had evidently improved cargo transportation from Mombasa to Nairobi and that he was eying the joint development of the line to Uganda's capital, Kampala. The two leaders will ride the SGR...

The continuous influx of imported goods in local markets have raised concerns for manufacturers and farmers in East Africa, forcing them to push for the full implementation of the Common External Tariff on goods from outside the region. They are worried about their interest rates given the fact that staple foods such as rice, cooking oil, noodles and wheat are largely from foreign countries. So far, there is a drastic decline in the consumption of local agricultural products. This puts manufacturers and farmers at risk of low production and incurring huge losses. Local manufacturers blame these high imports on tax exemption by some partner states. But even though this could be true, it may not be the only contributing factor. Over the last couple of months, EAC member countries have been caught up in interregional trade rifts rising from unlawful tariff and non-tariff barriers. These tariffs ultimately affect the entire region including the agro-industry because they stiffen market access and drive trade costs up. This frustrates small scale traders and reduces the output of manufacturers and farmers. If local agricultural products cannot access the markets to meet consumers’ demand, surely import goods will serve as a substitute. Despite close relations between Kenya and Tanzania with deals that target integration, the situation of tax stands in the way of development and progress. “As long as transaction and logistics costs remain high, goods from outside the region will keep coming,” Joshua Rugema, CEO of the East African Commodities Exchange. Agriculture is one of East Africa’s most important...

There is a great need and importance to ensure that Kenya maintains regional trade with its neighbors and within East Africa to boost its economy and relations. According to Dr. Mukhisa Kituyi, the Secretary General United Nations on Conferences, Trade and Development (UNCTAD), regional trade will help boost the economy of the country. In a public lecture at the University of Nairobi during his recent visit to Kenya, Dr. Kituyi said it is important for neighbouring countries to first do business among themselves, before reaching out to others. “Those who do not trade with their neighbors betray them,” he said. His sentiments come on the backdrop of frosty relations among three East African countries; Uganda, Rwanda and Burundi, that has strained trade. Between Rwanda and Uganda, there have been claims and counter claims bordering espionage, consular frustrations as well as erection of non-tariff barriers to trade. This has seen Rwanda’s unilaterally close its busiest border crossing with Uganda at Gatuna in February. This has since disrupted trade and laid bare simmering tensions between the two East African nations. This is despite Rwanda’s claim that the closure is associated to renovations. With, Burundi, Rwanda has also been accused of fanning dissidents keen to destabilize President Pierre Nkurruzinza’s government. This it has denied. Closer home, Kenya has for years had an on-and-off affair with Tanzania over access to the latter’s market. This has seen a number of Kenyan goods and services being frustrated at the various border points. In its latest report,...

Tanzania has directed bulk petroleum importers and suppliers from its northern regions to use the Tanga port instead of Dar es Salaam. This is expected to result in lower pump prices in Kilimanjaro, Arusha and Manyara areas. Petroleum product importers and suppliers in northern Tanzania however say the Dar es Salaam port is more efficient than Tanga. The new directive comes less than a year after Energy Minister Medard Kalemani ordered petroleum suppliers in southern Tanzania to use the southern port of Mtwara. Tanga port is now under expansion to increase its depth from the current 3.5 metres to 15 metres after a feasibility study for dredging the port was finalised last year. Dredging will increase the port’s handling capacity to one million tonnes per year. Tanga port has been earmarked for Ugandan petroleum product importers and other cargo going to Kampala through Tanzania. Related Content Mtwara to handle fuel destined for southern Tanzania A Ugandan oil and gas delegation visited the port last November to assess the cost effectiveness and cargo handling facilities. The government had encouraged bulk oil importers and suppliers to construct more oil storage facilities at Tanga. The Tanzania Port Authority is planning to develop a modern jetty at the Raskazone oil terminal in Tanga port that can accommodate medium-sized oil tankers of 80,000 to 120,000 tonnes. Source: The East African

Dar es Salaam. Africa could be looking up to East Africa for an economic miracle, thanks to massive public investment in infrastructure by governments across the region. The 2019 Economic Report on Africa by the United Nations Economic Commission for Africa ranks East Africa as the fastest growing sub-region on the continent, with the trend being attributed to strong investment in infrastructure. “East Africa remains the fastest growing sub-region in Africa,…driven by strong public spending on infrastructure and rising domestic demand,” the report reads. It shows that the sub-region’s economy grew by 6.1 per cent in 2017 and 6.2 per cent in 2018. It is projected to reach 6.4 per cent in 2019 and 6.5 per cent in 2020, to be fuelled in part by private investments in industrialising the region as governments work to attract investors to beef up economic growth aspirations. “Growth is likely to be boosted by increased private investment; growth in industry and services especially in Ethiopia, Kenya, Rwanda and Tanzania; higher public investments in infrastructure; stronger private consumption; oil and gas explorations; more inflows of foreign direct investment; and larger diaspora remittances,” the report reads. The economies of Central, North, Southern and West Africa grew by 2.3 per cent, 3.7 per cent, 1.2 per cent and 3.2 per cent respectively in 2018. Tanzania, which remains one of the fastest growing economies in Africa, is currently undertaking several mega infrastructure projects as it beefs up its vital economic infrastructure to support the country’s industrialisation drive. Some...

Speaking at State House during a joint press conference with President Uhuru Kenyatta, Museveni recalled that during previous administrations, port officers would drag their feet when handling goods destined for Uganda. He commended his counterpart for instituting corrective measures and streamlining systems at the port to ensure efficiency. "Before President Uhuru’s time some of the people at the port said they were doing Uganda a favor by handling our goods and so we had to come and beg them, Tafadhali, Please,tafadhali, tafadhali... "Not knowing they were sabotaging Uganda and at the same time Kenya," he stated. Museveni further noted that trade was growing between the East African countries and measures taken by Uhuru at the port were contributing factors to the growth. "The efficient handling of cargo in the port and the hinterland is good for the economy of Uganda and Kenya. The more business we do, the better for all of us," he stated. He added that the Standard Gauge Railway (SGR) would reduce the transit time between Mombasa and Kampala to 24 hours. "In the coming years, a lot of cargo will move from the roads to the railway and fuel will move from the roads to the pipelines," he added. On his part, Uhuru affirmed his Ugandan counterpart's call for the need to strengthen ties within the region. "I believe the fruitful discussions our delegations have had will be work towards promoting trade, free movement of goods, services and people across our borders "We need to ensure we increase the number of boarders post along our...

The pledge by Presidents Uhuru Kenyatta and Yoweri Museveni, when they met in Mombasa on Wednesday, to enhance trade and co-operation between Kenya and Uganda is a major development in cementing ties between the neighbouring nations. We challenge them to follow that with tangible actions. This is because several such commitments have been made before at the bilateral or regional levels, but quickly discarded due to suspicion and mistrust. Moreover, the leaders of the various countries have the penchant for forming and breaking alliances all the time, keeping their populace guessing their every move. On paper, all six East African Community member states, including new entrant South Sudan, are determined to pursue common economic goals and collectively grow as a bloc. In reality, however, they tend to operate at cross-purposes. MIGINGO Kenya and Uganda have vexed issues that have remained unresolved for years. For one, they are entangled in a bitter struggle over the tiny Migingo Island on Lake Victoria and, despite several attempts at resolving it, including creating an inter-ministerial task force, little has been achieved. On Wednesday, the matter once again came up during the meeting, at which the presidents announced a joint commission to tackle the dispute and develop a framework for sustainable fishing on Lake Victoria. At the centre of the conflict is resource extraction — fishing — with each country claiming ownership of the island that is a vintage launching pad for expeditions on the lake. This dispute must be resolved and residents allowed to...

Ugandan President Yoweri Museveni on Wednesday called on East African countries to buy products made from the region to minimize importation of goods that can be manufactured locally. Museveni, who is on a two-day state visit to Kenya, said that countries are losing millions of dollars from importation of goods because of giant factories in East Africa which have since broken down. He called on Kenya to fast-rack revival of Webuye Paper Mill which was critical in supplying paper products in East Africa. Museveni said that his country imports paper worth 13 billion shillings (130 million U.S. dollars) from Finland, yet Kenya has a sleeping paper mill. "It must be stopped. Why doesn't Uganda buy paper from Kenya?. We have to stop enriching others," he told a joint news conference with Kenyan President Uhuru Kenyatta in the port city of Mombasa. "When the Standard Gauge Railway (SGR) is finished, it will take 24 hours from here to Kampala... This should have been done before and there's no other way these countries' economies are going to grow if we don't solve this issue of movement," said Museveni. He pointed out that the enhanced efficiency in handling of cargo at the port and in the movement of goods along the Northern Corridor has been of great benefit to the economies of both Kenya and Uganda, and for the other countries that depend on the Port of Mombasa for their import and export business, including Rwanda, Burundi, South Sudan and the Democratic Republic...