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EAC INTENSIFIES CONTROL, PREVENTION OF AFLATOXIN

EAST African Community (EAC) has embarked on concrete steps to control and prevent Aflatoxin amid the official launch of nine sets of policy briefs on the poisonous substance. During the launch in Nairobi, Kenya it was declared that the EAC Secretariat has prioritised Aflatoxin prevention and control as one of its flagship projects. The Principal Secretary (PS) in Kenya’s State Department of Agriculture Research, Ministry of Agriculture, Professor Hamadi Boga officiated the launch on behalf of Cabinet Secretary in the Ministry of Agriculture, Livestock, Fisheries and Irrigation. A communiqué availed here by the EAC Secretariat Head of Corporate Communications and Public Affairs Department, Mr Owora Othieno quoted Professor Boga as saying that Africa loses up to 670 million US dollars annually in lost exports due to Aflatoxin contamination, with about 40 per cent of foods in the domestic markets exceeding allowable levels of Aflatoxin in foods. The World Health Organisation (WHO) describes Aflatoxin as poisonous substances produced by certain kinds of fungi found naturally and posing a serious health risk to humans and livestock. They also pose significant economic burden, leading to destruction of over 25 per cent of the world’s food crops, annually. Most human exposure comes from nuts and grains. The PS said that the nine sets of policy briefs on Aflatoxin contain key recommendations on strategic policy actions and interventions required to mitigate the impacts and effects of Aflatoxin. Existing efforts to mitigate Aflatoxin at national level have remained fragmented and not adequately supported, technically and financially....

Kenyan banks deepen footprints outside EAC as conflict hits South Sudan

NAIROBI, Aug. 22 (Xinhua) -- The prolonged conflict in South Sudan has seen Kenyan banks scale down operations in the country, and look for opportunities outside the East African Community (EAC). The banks have halved their branches in South Sudan, initially one of the promising markets, since the war started in 2016. However, as the South Sudan market shrinks, the commercial banks in the East African nation's biggest economy have sought new business or scaled up operations in other countries that include Rwanda, Tanzania, Congo DRC, Malawi, Burundi and Botswana. Some nine banks have subsidiaries outside Kenya, with the institutions increasing the number of the branches to 306 in 2017, up from 297 in 2016, the latest sector report from the Central Bank showed Wednesday. From about 40 branches in South Sudan, Kenyan banks now have only 20 branches, with a majority having closed them down. "Kenya Commercial Bank (KCB) Group continued to scale down its operations in South Sudan following the deteriorating security condition that started in 2016. The bank cut its branch network to 11 from 17 in 2016," said the report. Cooperative Bank has four branches while Equity Bank has five, with the number of branches by the two remaining flat. The banks have, however, spread to Malawi, Botswana, the Democratic Republic of Congo (DRC) and Burundi, markets that initially looked distant when South Sudan was promising. "Equity Bank scaled up its operations in Congo DRC in 2007 from 31 to 39 branches. The bank has 79...

We shall improve Uganda’s quality of exports – trade funder

What explains DFID interests?  The United Kingdom’s partnership with Africa is incredibly important to us. In the UK perspective, Africa’s success in the medium and long term matters. Uganda rightly aspires to reach the middle income status and that economic growth is going to be important to achieve that. One of the UK’s priorities is to get behind Uganda’s plans to try and improve its economic growth. This is because we know that trade is critical to Uganda’s economic growth and no country in the world has ever achieved economic growth without increased trade. Beyond that, Uganda is a land locked country, it links Kenya, Tanzania, Burundi, South Sudan and DRC. So, the trade link is important for not only Uganda but also the wider East African Community (EAC) region. Because of all that, the UK’s focus is on supporting Uganda to improve its economic growth. We do that in many ways. We spend about £140 million (about Shs662billion) per year only in Uganda. This is in addition to another £60million (about Shs285billion) is spent in multilateral organisations. So in total, the UK will be contributing about £200 million (about Shs946 billion) in Uganda this financial year. That money is spent on various programmes such as improving human capital, health and education. Some of the funds are also spent in improving the country’s roads. We have a programme with the Africa Development Bank to build about 200km of roads that are particularly important for trade routes. Within that, programmes which...

EAC and its organs should take safety seriously

Early at the beginning of the year, members of the East African Legislative Assembly (EALA) conducted on-the-spot inspections of East African Community (EAC) projects, organs and facilities along the two trade corridors; Northern and Central. The aim of the tour was to identify bottlenecks to the effective implementation of the EAC Customs Union Protocol. Among the facilities put in place was the East Africa Trade and Transport Facilitation Project (EATTFP) set up to reduce transit cargo time by eliminating Non-Tariff Barriers (NTBs) and enhance safety. While many unnecessary weigh bridges were removed along the Central Corridor and resting areas for long distance truck drivers set up - at least after every 12 hours on the road - the safety issue still lags behind. When EALA members arrived at the Rusumo One-Stop Border Post along the Tanzania-Rwanda border, they pointed at the lack of adequate safety and emergency measures. Seeing the number of trucks hurdled together, with some carrying inflammable liquids and gases, it was as if they were waiting for disaster to strike … and it did this week. A fuel tanker on the Tanzanian side lost control and rammed into other parked trucks sparking an enormous explosion. The nearest fire engine was in Rwamagana, a two-hour drive on the Rwandan side. Rwanda National Police also sent another fire engine from Kigali. Rwanda Defence Force (RDF) had the quickest option; it immediately swung into action and dispatched its fire-fighting helicopter into action. It was not the first time RDF choppers had...

SGR costs to add up to Sh800bn after phase 2 deal signed

When Kenya put pen to paper next month to sign a Sh380 billion contract for the second phase of the Standard Gauge Railway(SGR), the total cost for the project will hit Sh800 billion. The Mombasa-Nairobi phase cost Sh327 billion, the extension to Naivasha costs Sh150 billion and the final phase will cost Sh380 billion. According to government's plan, phase 2B of the SGR project will start at the planned Naivasha Industrial Park where Phase 2A ends. It will pass through Narok, Bomet, Kericho counties and terminate in Kisumu where the government will put up a modern inland port. The railway line will have 25 stations including a county station in Kisumu, six intermediate stations, and 18 crossing stations. A statement posted on the FOCAC website on August 1 said that a contractor of the extended Nairobi-Naivasha Standard Gauge Railway (SGR) had already started laying tracks and rail sleepers as implementation of the mega infrastructure project gathers steam. The contractor, China Communications Construction Company (CCCC) said the laying of tracks and rail sleepers is being carried out from Narok towards Nairobi. The 120-km Nairobi-Naivasha line is the first of the three segments that make up the second phase of the SGR project that ends in Malaba town located at the Kenya-Uganda border. The site quoted Steve Zhao, the CCCC Kenya SGR Project spokesman, saying the erection of t-beams and laying of the rail sleepers from Nairobi will be handled by section office number seven while section office number six will oversee...

Mombasa port records cargo growth in 6 months to June

The Kenya Ports Authority has recorded an overall improvement in its key year on year performance indicators as well as an increase in cargo handled six months into the year. In June the port handled throughput of 2,720,000-deadweight tonnage (DWT) representing a 0.6 per cent increase compared to the same month last year, a report released yesterday showed. The growth is attributable to an increase in dry bulk and containerised cargo, which recorded an increase of 6.8 per cent and 10.6 per cent respectively. January to June saw the port register a 2.4 per cent growth in throughput compared to the same period last year. Imports took a lion’s share of the throughput at 83.6 per cent, while exports registered 12.5 per cent. Transshipment cargo recorded 3.6 percent of the total traffic. The strong freight figures were equally demonstrated by the growth of container traffic. In June, the port registered 106,153 Twenty Foot Equivalent Units (TEU’s) compared to 99,727 TEUs handled last year and posting an increase of 6.9 percent. The cumulative container traffic from January to June saw an increase of 5.3 per cent with the port handling 614,625 TEUs compared to 583,661 TEUs during a similar period last year. Speaking on the performance report, KPA’s acting managing director Daniel Manduku said whereas the increase of throughput and container traffic is an indication of vibrant economic activities in the region, the performance indicators of the port authority had equally improved. “Numbers give a concise picture and our performance indicators...

Kenya to digitize war counterfeits with US$1.5 M kitty from Trade Mark

ACA is expected to use the funds to develop an online platform that will improve the efficiency of tracing and seizing of counterfeit goods. The signing ceremony will be witnessed by the ACA Executive Director, Elema Halake, and TMA Kenya Country Director, Ahmed Farah. This kitty will go a long way in supporting Kenya’s renewed war on counterfeits. According to a study on the vice of counterfeiting in Kenya, which was done in 2012, it is estimated that Kenyan manufacturers are losing at least 40 per cent of their market share to counterfeiters. An approximate Ksh30 billion (US$ 42 million) is lost by Kenyan manufacturers annually, while the government loses Ksh6 billion (US$80million) as potential tax revenue. The move by TMA comes at a time when the government has heightened the war against counterfeits. In May this year, President Uhuru Kenyatta commissioned a multi-agency team to lead the fight against counterfeits and illicit trade in the country. It constitutes the Kenya Revenue Authority (KRA), Kenya Bureau of Standards (KEBS), the National Police Service, Kenya Railways, Pharmacy and Pharmaceutical Board, Kenya Ports Authority (KPA), Anti Counterfeit Agency, Public Health services, Immigration services and Weights and Measurements Service Kenya. The team which has heightened surveillance in the country’s points of entry has been conducting raids which have successfully nabbed counterfeit goods worth more than Ksh76.5 billion. During a recent briefing to the President, the multi-agency team said it had identified key areas in which it will focus on as it continues with...

Kenya’s Anti-Counterfeit Agency gets UK funding to fight illicit trade

Operations at the Kenya’s Anti-Counterfeit Agency (ACA) will soon be digitalised thanks to a move by the agency, to sign a financing agreement worth $1.5 million with the UK Department for International Development (DFID). The move is expected to ease the information flow from detection, reporting and destruction of illicit goods in the country. The funding which according to TradeMark Africa (TMA) statement will be channeled through TMA’s and  will see the regional agency provide technical and project financing support to the agency with the aim to better and efficiently serve their stakeholders nationally, regionally and globally. This financing agreement comes at a time when there is increased outcry from manufacturers and consumers due to the increased trade in counterfeits in the country.  Counterfeiting adversely affects IPR owners’ investments, government revenue and safety of the public.  With the government’s drive on the big four agenda, ensuring that manufacturers intellectual property rights are respected is a critical success factor for the Manufacturing Agenda. The digitalisation once implemented will ensure that, ACA inspectors, other law enforcement agencies, IPR owners and the members of the public have at their disposal instruments and tools that will deter counterfeiting, enhance the process of detecting, reporting and impounding counterfeit goods, and ensure a transparent process on how counterfeit goods are destroyed. In Kenya, the Kenya Association of Manufacturers estimates that 40% of their market share is lost due to counterfeiting with other emerging costs going to policing their intellectual property. Other estimates from the Kenya Association of Manufacturers...

Kenya: Anti-counterfeit war chest gets $15m boost

Kenya on Monday received $1.5 million support from Trade Mark East Africa towards supporting the digitalization of its operations and services to fight counterfeit goods.The proposed digitalization project will involve development of ICT-enabled solutions for ease in the detection of counterfeits by consumers and research and awareness programs to establish the national public awareness on counterfeit goods. The financing agreement comes at a time of increased outcry from manufacturers and consumers due to the growing trade in counterfeits in Kenya. Counterfeit products are estimated to cost Kenya about $2 billion annually in unpaid taxes. The signing was witnessed by the Anti-Counterfeit Agency chairperson, Mrs Flora Mutai, TradeMark Africa (TMA) Kenya Country Programme Director, Ahmed Farah and UKAID Head of Sustainable Economic Development, Ian Mills. Speaking at the signing ceremony in Nairobi, the Anti-Counterfeit Agency chairperson Mrs Flora Mutai appreciated the support from TradeMark Africa towards digitising its operations and noted the increased challenge posed by counterfeiters who are using modern technology to copy trademarks and industrial designs up to undetectable levels. “Technology has now moved to the wrong hands. We are witnessing illicit trade crime sophistication due to IT in wrong hands” she said. “The overall aim of this project and intervention is to take the necessary steps to mitigate and eliminate counterfeiting and to subsequently create an attractive and conducive trade environment for businesses to flourish. This automation is in line with the East Africa governments’ trade facilitation initiatives that reduce barriers to trade,” said TMA Kenya Country Programme...

How Kenya has let Uganda gain upper hand in regional trade :: Kenya – The Standard

Whoever coined the popular saying that big boys don’t cry may have had Kenya in mind in the context of regional trade. East Africa Community’s big boy Kenya has remained mum even when blatantly backstabbed by its neighbours. Instead, the country has feigned valiance or ignorance even when its peers invite it to a duel. Perhaps this is out of fear that it could lose some of the key trading partners and markets for its products. And after months of  a trade spat with Tanzania in which Kenya’s products have been denied entry into the country, Kenya now has to grapple with an alarming rise in illegal imports from Uganda. Uganda, Rwanda, Tanzania, Burundi and South Sudan make up the EAC. Manufactured products from Kampala have flooded the Kenyan market, most of them having been imported cheaply from outside the regional market. Instead of coming through the port of Mombasa as has been the tradition, a good chunk of these products is flown directly to the landlocked country from Guangzhou,China. Most of these imports from China and India are also made in Kenya. Consequently, has been struggling to stem their flow into the local market to protect local industries. Under the EAC’s Common Market Protocol, such goods would ordinarily be slapped with heavy tariffs by Kenyan tax authorities if they find their way into the country. “When such a product is brought into the Kenyan market, it attracts duty at the EAC common external tariff rate,” said Kenya Revenue Authority (KRA)...