The business community has warned that the economy is in danger of total decline and urged politicians to strike a quick deal to end the stalemate over the repeat election. On Monday, three business associations said the country was experiencing slow growth, a sharp dip in profits, drop in employment rates and markets taking a beating since campaigns began in June. The Kenya Private Sector Alliance (Kepsa), Kenya Association of Manufacturers (Kam) and the Kenya National Chamber of Commerce and Industry (KNCCI) warned that the political tension could lead to inflation and an unpredictable economy. INVESTORS Kepsa and KAM said most businesses are witnessing a wait-and-see approach by both local and foreign investors, a situation that could be worsened by the delayed decision-making process ahead of the election. Kepsa chief executive officer Caroline Kariuki said activities at the Mombasa port, lending, foreign exchange, employment and international trade could be the most hit by the extended campaigns. TRADING Early this month, the shilling fell by as much as 0.32 percent, as trading at the Nairobi Securities Exchange (NSE) was temporarily halted because of panicky transactions mostly by foreign investors, barely an hour after the Supreme Court ruling that annulled the presidential election. The trading meltdown at the securities market extended to Monday with investors warning that the poor returns could spell a doom for markets. “Today’s turnover at NSE is about Sh400 million. Definitely the election and its uncertainties is affecting our securities market,” investment banker Jimnah Mbaru said. TOURISM Ms...

Construction of the second phase of the second container terminal at the Mombasa port is set to begin in January. This is after Kenya Ports Authority (KPA) secured a Sh35 billion loan from the Japanese government. The KPA Managing Director, Catherine Mturi-Wairi, said yesterday the tendering process for the project would begin soon. “We already have the Sh35 billion financing from the Japanese government. We are now in the tendering process but construction must commence by January 2018,” said Ms Mturi-Wairi in an interview. The second phase of the container will provide an additional capacity of 450,000 Twenty-Foot Equivalent Units (TEUs). Handling capacity The first phase was completed in September last year and has a handling capacity of 550,000 TEUs. Meanwhile, Transport Cabinet Secretary James Macharia has announced that the Government is looking for more funds to build a modern and bigger oil terminal to replace the Kipevu Oil Terminal in Mombasa. “We are planning a situation where the facility will have pipes running on the seabed to link with KPC (Kenya Pipeline Company) storage tanks,” said Mr Macharia in an interview. "The new oil terminal will incorporate an LPG pipeline and have the capacity to handle four vessels at a time. He also confirmed that the ongoing construction of an alternative transport route from Mombasa to Burundi through Holili, Singida-Kobero border and finally Bujumbura was on its last stretch. Final phase “The project is in its final phase,” Macharia said. "The route will cover about 1,545km, which reduces the...

A study released by the Kenya Association of Manufacturers last month stated that Africa continues to be Kenya’s leading export destination accounting for 40.6 per cent of our exports, with the EAC community taking up 21.1 per cent of total exports in 2016. This means that our exports to the EAC accounted for slightly more than half of the total exports in Africa. However, our total export earnings last year decreased by 4.0 per cent and this could be explained by a decrease to exports in Uganda and Rwanda by 9.3 and 2.5 per cent respectively. In the past five years, we have witnessed the growth of our EAC neighbours through their efforts to industrialize and grow their economies. Kenya which has always been a trailblazer in this regard in the region, has now, at best stagnated and at worst, as I have mentioned above, lost its footing in some areas. This is a sign that we need to act fast if we want to remain a beacon and a notable investment hub in Africa. There is an urgent need to start channelling our focus towards diversifying and growing our exports in order to secure our markets. AFDB have cited that intra African trade has decreased from 18pc in 2000 to 15pc in 2015. Whilst in markets like the EU, most member states have two or three of their regional partners who account for over 50pc of their intra EU exports. With these statistics, it apparent that EAC countries have...

South Sudan failed to pay $15 million to the East African Assembly as its contribution to bloc, a senior official said. The failure underscores the precarious financial position of President Salva Kiir’s government as it faces dire economic collapse. The cash-starved country was supposed to pay nearly $7 million and $8 million as part of its contribution to the regional bloc for the financial year 2016/2017 and current 2017/2018 budget, respectively. Mou Mou Athian, undersecretary in the Ministry of Trade, Industry and East African Affairs, said South Sudan’s delay in contributing to the East African Community budget undermined the country’s integrity. “This delay payment of membership contribution put our nation’s integrity at stake. South Sudan made a voluntary commitment to become members of the East African Community (EAC) and must abide by its promise,” Mou told local daily The Dawn. In August, South Sudan Transitional National Legislative Assembly elected nine parliamentarians to the assembly of the economic bloc. Mou said the elected members of the parliaments are paid from the contributions, which all member states make. Dr. Alic Garang, a South Sudanese senior economic analyst at Juba-based think-tank the Ebony Centre for Strategy Studies, told Anadolu Agency that South Sudan is likely to be sanctioned by East African parliament. “If South Sudan failed or delay to remit their contributions, the country might be sanctioned by partner member states, and this denies the country some of the benefits,” Dr. Alic said. South Sudan became the 6th member of the East African Community after joining the regional body...

The Government plans to put more effort in automation of services at the port of Mombasa as the amount of cargo increases. Data from the Kenya Ports of Authority (KPA) shows that in the first six months of 2017, the facility handled 17.5 million tonnes, up from 15.7 million tonnes in the same period last year. Transport and Infrastructure Cabinet Secretary James Macharia said with the port likely to handle more cargo, especially from neighbouring countries, automation of services is crucial. “We are continuing to implement the Mombasa Port Community Charter devised in 2014. Most important is the automation of services under the Kenya National Single Window System as we anticipate more cargo coming especially directed to our neighbours,” he said. KPA Managing Director Catherine Mturi-Wairi said export traffic at the port during the first half of the year increased slightly by 36,094 tonnes to 2,182,232 tonnes. Import traffic had a major increase, growing by 12.1 per cent to record 14,803,838 tonnes from 13,209,720 tonnes registered last year. The increase was driven by bulk commodities such as wheat, clinker, palm oil and refined petroleum products. “Handling such quantities needs an efficient and automated cargo handling system. We already have one in place but we will be working with partners like Trade Mark East Africa to improve on it,” said Ms Mturi-Wairi. The automation comes even as the Kenya Shippers Council CEO Gilbert Langat said cargo handling at the port is still slow due to poor systems, calling on KPA to improve...

Kenya Ports Authority (KPA) has announced plans to develop Shimoni Port on Kwale’s Indian Ocean coast and Kisumu Port on the shores of Lake Victoria. The ports will then be placed under the management of the State Corporation. Shimoni Port receives goods between Kenya, Zanzibar and Pemba and is managed by various Government departments, including Kenya Wildlife Services and Immigration Department. The port in Kisumu is managed by Kenya Railways. Speaking during a KPA stakeholders meeting in Nairobi, KPA Chairman Marsden Madoka said surveys on the two facilities had been carried out and consultants had already compiled reports to advice on the way forward. Meanwhile, KPA Managing Director Catherine Mturi-Wairi has disclosed that last year KPA handled 27.26 million tonnes of cargo up from 26.73 million in 2015, a growth of 2.4 per cent. She said container traffic alone recorded an increase of 15,253 TEUs (Twenty Feet Equivalent) from 1.07 million TEUs handled in 2015 to 1.091 million TEUs in 2016. "Performance in the first seven months of this year has also been promising as we have continued to witness an overall positive growth compared to last year’s corresponding period," she said. The port handled 17.52 million tonnes up from 15.66 million registered in the corresponding period in 2016. Source: Standard Digital

Whenever I am talking about Africa, I am always tempted to bring out four factors as a way of introduction.  First of all, Africa is the origin of Man. Four and a half million years ago, man evolved from the lower primates in the grass-lands of East Africa. This original man was known as homo-sapien sapien. Man did not leave Africa to populate other continents until about 100,000 years ago.  Secondly, Africa was the pioneer of civilization with the Egyptian civilization being among the first ones, between 3000BC and 3500BC.  This is a whole 5,500 years ago.  The Greek civilization or the Roman civilization were much later. Thirdly, Africa succored all the modern religions: Christianity, Judaism and Islam. When the Jews were about to starve to death, they fled to Egypt and, eventually, linked up with their brother, Joseph, whom they had sold into slavery.  This is in the Book of Genesis: Chapter 37:28 and it was around 1900BC.  When Herod was hunting for baby Jesus to kill him, his parents hid him in Egypt.  This is in the Book of Mathew: Chapter 2: Verse 3. When Mohammad was in trouble with his Arabs, in the year 615 AD, he fled to Ethiopia.  All these were firsts for Africa.  Fourthly, however, for the last 500 years, Africa has encountered calamity after calamity in the forms of: slave-trade, colonialism, genocide, neo-colonialism, bad governance, under-development and marginalization in the global community. I have given my views repeatedly on how this reversal of...

Over 10 years ago, Mirama Hills border post was the busiest entry and exit route from Rwanda to Uganda compared to Gatuna or even Cyanika border posts. Eugene Habumuremyi, who sells refreshments at Kagitumba Border, is one of many who reside along Kagitumba-Mirama Hills and testifies that dozens of trucks as well as buses would cross the border on a daily basis and benefited locals economically. His business now is “very slow” because just four buses use the route every day and a “not more than 2 cargo trucks” pass through the border in weeks. For residents of Matimba town in Nyagatare District through the small town of Kabarore in Gatsibo district, they will tell you how business was booming back when the border was busy. Same thing will be told of residents of Sofia (Mirama Hills) through Ruhama or Kitwe towns in Ntungamo District on the Ugandan side. But things have since become slow. When the road connecting Kabale to Gatuna was redeveloped, it dealt a huge blow to businesses along Kagitumba-Mirama Hills corridor—and it is yet to recover from that setback even after the establishment of One Stop Border Post. The Reason, truck and Bus drivers say, was the poor road that connected this particular border post to Ntungamo. From Mirama Hills to Ntungamo, It was a dirt road, with several users rendering the route “impassable”—hence the reason why traffic turned to Kabale-Gatuna route for “safety”. Bosco Rusagara, the Director of Infrastructure and Transport at the East Africa...

Regional integration is crucial for economic, political and social development and restoration of lasting peace and stability in the East Africa region, experts have said. The experts told Xinhua in Juba that efforts spearheaded by the East African regional bloc, the Intergovernmental Authority on Development (IGAD) towards attaining free trade and movement of persons in the member countries would strengthen cooperation, development and prosperity in the region. Mehari Taddele Maru, an expert in international law and migration said if countries become inter-dependent and integrated too tightly, chances of fighting are very less because the harm will be too big. Maru, who also serves as Chief Strategist for IGAD, said one way of bringing peace in the IGAD region is through strong integration among bloc's members and through free movement. "We assume integration will make the region too much close to each other that they can't hurt each other without hurting one side. Through this, long term peace and security, stability and prosperity of the region can be ensured," Maru said at the end of consultative meeting on Friday evening. Maru urged East African countries to aspire towards integration for a more peaceful region and cooperation among countries, adding that the proposed IGAD protocol on free movement provides options for suspending its provisions during time of emergencies such as war and diseases outbreaks. James Okuk, a Lecturer of Political Science at the University of Juba, said integration will give countries strength, power and bigger voice in the whole region and also...

THE National Agriculture Export Board (NAEB) has started a countrywide campaign to boost coffee production and consumption. The new campaign is part of the 2017 Rwanda Coffee day, which is being held under the theme “Gusangira kawa y’u Rwanda tubigire Umuco Iwacu!” It is also part of the strategies to promote Made in Rwanda campaign aimed at boosting local production. According to Dr. Celestin Gatarayiha, the head of the coffee division at NAEB, sensitising farmers to embrace good agricultural and post-harvest practices will increase productivity and enhance coffee quality. Garayiha added that the top priority is promoting local consumption of coffee as well as establishing value addition businesses in order to increase access to coffee beverage across the country. Meanwhile, sector experts have called for more efforts to address the mindset of people who think drinking coffee is a foreign culture, not for Rwandans. About 99 per cent of coffee produced in Rwanda is consumed abroad leaving only 1 per cent for locals. In a recent interview with The New Times, Jose Kawashima, the representative director and president of All for Coffee Limited, a Japan-based global coffee company, said its imperative for Rwanda to boost its local market for homegrown coffee as an alternative to the growing   global   coffee market competition. NAEB has been emphasizing value addition and encouraging farmers and co-operatives to take advantage of coffee washing stations to enhance quality. Coffee is a key export crop of Rwanda and has contributed an average of 24 per cent to total agricultural exports...