Kenya’s main port of Mombasa handled 11.9 percent more cargo in the first half of this year, helped by increased efficiency after its handling capacity was expanded, the port’s management said on Tuesday. The increase came despite uncertainty surrounding national elections in August, which have since been nullified by the Supreme Court. Kenya will hold a fresh presidential election on Oct. 17. Last year Kenya commissioned a second container terminal worth $300 million. The terminal is 900 metres long with three docking berths and provides an additional cargo-handling capacity of 550,000 TEUs (20-foot-equivalent units) per year. The port handled 15 million tonnes of cargo between January and June compared with 13.4 million in the same period last year. During first six months of 2017, imports accounted for 12.7 million tonnes against 11.3 million handled in the same 2016 period, an increase of 12 percent, the Kenya Ports Authority said in a report. It handled 1.87 million tonnes in exports, up 0.5 percent on the 1.86 million tonnes handled in the same period last year. The port, a major trade gateway to east Africa, handles imports such as fuel for Uganda, Burundi, Rwanda, South Sudan and the eastern Democratic Republic of the Congo. Investors and consumers were cautious in the run up to elections due to concerns of potential violence during the polls. About 1,250 people were killed in ethnic violence following a disputed presidential election in 2007. The Kenya Association of Manufacturers said last week business at the port had...

The Chinese firm running Kenya’s fast train services has won a major deal in its bid to control haulage of bulky port cargo following the exit of the Rift Valley Railways (RVR). The Kenya Railways, which has taken back all the RVRs operations, has allowed the China Railway and Bridges Corporation (CRBC) to extend the fast train tracks to cover its 10 berths. In the port’s logistics sense, the move is seen as a major coup against the century-old meter gauge track whose freight business has traditionally been dominated by heavy and bulk cargo. The RVR, which operated cargo haulage on the old tracks up to the end of August, had blocked the CRBC from extending the standard gauge railway (SGR) lines deeper into the port. It argued the move threatened its ability to load steel and clinker onto its vessels. Just 13 days after RVR’s  exit, the Kenya Railways says the CRBC has a free hand to construct the second phase of SGR lines between berths 1 and 10 of the Mombasa port. “Indeed the detailed designs have been undertaken,” said Mr Maxwell Mengich, the Kenya Railways’ manager in charge of the SGR project. “A joint meeting of representatives of Kenya Railways, KPA and RVR, had agreed that the port relief lines from berth No. 10 to Berth No, 1 would be constructed.” The greenlight has since been communicated to project advisor Apec and Edon Consultants. By extending the lines, bulky and heavy goods like iron, steel, clinker and...

Kenya’s main port of Mombasa handled 11.9 percent more cargo in the first half of this year, helped by increased efficiency after its handling capacity was expanded, the port’s management said on Tuesday. The increase came despite uncertainty surrounding national elections in August, which have since been nullified by the Supreme Court. Kenya will hold a fresh presidential election on Oct. 17. Last year Kenya commissioned a second container terminal worth $300 million. The terminal is 900 metres long with three docking berths and provides an additional cargo-handling capacity of 550,000 TEUs (20-foot-equivalent units) per year. The port handled 15 million tonnes of cargo between January and June compared with 13.4 million in the same period last year. During first six months of 2017, imports accounted for 12.7 million tonnes against 11.3 million handled in the same 2016 period, an increase of 12 percent, the Kenya Ports Authority said in a report. It handled 1.87 million tonnes in exports, up 0.5 percent on the 1.86 million tonnes handled in the same period last year. The port, a major trade gateway to east Africa, handles imports such as fuel for Uganda, Burundi, Rwanda, South Sudan and the eastern Democratic Republic of the Congo. Investors and consumers were cautious in the run up to elections due to concerns of potential violence during the polls. About 1,250 people were killed in ethnic violence following a disputed presidential election in 2007. The Kenya Association of Manufacturers said last week business at the port had...

The government may not be able to meet the September 31 deadline to stop maize importation. This was confirmed by the agriculture CS Will Bett who said that the subsidy programme could continue until December. Though some stakeholders have termed this as a political move, an industry expert who did not want to be named said it takes two to three months for maize imports to reach to the millers. He explained that it takes about 40 days for a vessel to get to Mombasa from Mexico, loading of maize to a ship takes about 10-15 days while off-loading of the commodity at the Port of Mombasa takes 10 days. “From the day of gazettement, the earliest maize imports can get to the millers is between two to three months. It may not be possible to meet the September 31 deadline," he said. On Sunday, Bett was quoted in the media saying; “The subsidy programme could continue until December as the projections for the expected harvest could be low. This is due to the drought experienced during the long rain season and the devastating fall armyworm which could lead to between 25-30 percent harvest losses.” The Sh6 billion subsidy programme was started in May to reduce the price of a 2kg packet of maize flour in the country. The programme was to end in August but in July, the government extended the duty free importation of maize to September in a special Kenya Gazette notice signed by the Treasury CS....

The President said the Executive and the Judiciary are functional while the Legislature opens Tuesday and the law making process will continue. “Let business continue. No politician will be allowed to interfere with peace and stability,” President Kenyatta said Monday during a meeting with business leaders at State House, Nairobi. “As far as peace and stability in the country are concerned, we are in full control,” the President added. He told them to ignore political rhetoric, continue with the growth expansion plans and forge ahead, creating jobs for the youth. Kenya Private Sector Alliance (KEPSA) CEO Carole Kariuki commended President Kenyatta for his commitment to peace and ensuring a conducive environment for business prevails even during the electioneering period. To bolster the business environment and instil confidence, Kariuki said the private sector initiated the Mkenya Daima campaign that drove home the peace message and encouraged optimism. “We believe that the Mkenya Daima campaign made a significant difference and has become a successful case study on how business can play a role in ensuring political stability,” Kariuki said. The KEPSA Chief Executive Officer said although global economies experience slowdown during elections, it is only when the electioneering period is prolonged that businesses suffer. She cited the low lending, foreign exchange, reduced employment, lower international trade and reduced activities at the Mombasa port as some of the negative effects of the electioneering period. “The private sector is looking forward to the end of the election cycle. We want to get back to...

The world doesn’t address Africa as ‘hopeless’ continent anymore. The big nations, the multi-national companies, economists all have remolded their opinion on Africa to the next investment destination after Asia in the coming decades. A decade ago one of the leading financial magazines had called Africa as a ‘hopeless continent.’ The winds started blowing in favour of Africa in a bigger way, and 10 years later all are queueing up for Africa as it is the second fastest growing region after Asia. This trend, all believe, will continue in the foreseeable future. The World Economic Forum (WEF) in one of its reports highlighted that “Africa is home to seven of the 10 fastest-growing economies in the world.” Green shoots in African economy in 2017 after a sharp decline in 2016 is a clear indication that the continent is getting back on the track. The untapped potential in the Sub-Saharan African region came to the forefront when the multi-national companies started focusing on Africa more. The sudden surge in investments in infrastructure development (road, rail and transport connectivity) from China, clubbed with conducive regulatory and policy support and regaining momentum in economy have brought Africa into the global centre stage. The advancement in economy trickles down to all segments of the business. The latest Logistics Performance Index (LPI) by the World Bank shows that the African countries have moved itself to the upward trajectory. South Africa continues to lead the pack by positioning itself at 20 in the world ranking. Countries...

Dar es Salaam. Industry, Trade and Investment ministry Permanent Secretary, Dr Adelhelm Meru, has called on manufacturers to see how they can supplement the government's industrialisation efforts through increasing investment ventures. Speaking today, August 8, at a breakfast meeting between the Confederation of Tanzania Industries (CTI) and Tanzania Revenue Authority (TRA), Dr Meru said; "We understand that you are grappling with a number of challenges including those related to taxation policy and tax administration, of which the government is already working on. “But, it is important that you collaborate with the government to address the challenges facing the industry,” he said. He urged the businessmen to address the challenge of product marketing for local products through increasing promotion both within and outside the country. "You are producing quality products that can compete in the global market. It is now high time you promoted the products," said Dr Meru. Source:  The Citizen

Kenya and Tanzania have agreed to conduct joint verification exercise on all imports and exports to help solve trade issues between the two neighboring countries. The exercise, once established, will see goods such as lubricants, edible oils, cement and textiles produced outside Export Processing Zone trade un-prohibited between the two countries, according to a joint communique between Kenya's Principal Secretary for Trade Chris Kiptoo and his Tanzanian counterpart Adolf Mugenda issued in Nairobi on Sunday. In the communique issued following three days of intensive talks, the duo underscored the significance of having regular bilateral meetings to discuss concerns and opportunities with a view of promoting trade for the mutual benefit of the two countries and its people. "The two sides deliberated on inter-alia concerns related to the retail sector, customs, freight forwarding, administrative bottlenecks and implementation of the East African Community (EAC) directives including the Single Customs Territory system to hasten clearance of goods across the borders," reads the communique. Lack of preferential treatment for certain goods produced in the region citing rules of origin and application of non-tariff barriers have seen trade between East Africa's two leading economies plummet in the last two years. The two government officials discussed the need to ratify and implement the EAC Sanitary and Phytosanitary Measures (SPS) Protocol, which requires partner States to establish regulatory institutions and harmonize control measures besides speedily development and adoption of cargo tracking system. The principal secretaries called upon immigration chiefs to convene regular bilateral meeting to resolve some...

The Common Market for Eastern and Southern Africa (COMESA) secretary General, Sindiso Ngwenya has urged member states to fast track harmonisation of policies in the mining industry to make the sector more competitive and profitable. According to Ngenya, the sector’s potential can only be sustainably harnessed through establishment of governance structures and leveraging on the existing multinational trade agreements. Ngwenya told The New Times that sound institutional frameworks will enable COMESA’s national and sub-national governments to have a say in decisions regarding the use of the resources located in their territories including minerals if they harmonise policies regulating the sector. “Good governance underlines the sustainable exploitation of mineral resources,” Ngwenya said adding that harmonisation of national and regional mining policies will underpin sustainable and broad-based socioeconomic development in the region and Africa at large. He added that more and more types of mineral resources can be more fully tapped as COMESA countries adopt the Mining Vision of Africa. “The introduction of an appropriate policy mix and the best global mining practices in line with country specific circumstances will help institutional capacities to best market their natural resources including minerals. According to sector experts, multilateral trade agreements such as the Tripartite Free Trade Area signed by COMESA, East African Community and Southern Africa Development Community provide the necessary framework for multinational mining companies to do business. The COMESA region should therefore improve their mining policies in line with the African Mining Vision (AMV)’s principles of “transparent, equitable and optimal exploitation of a country’s...

Local companies in joint venture agreements with a Chinese company constructing the 120-kilometre Nairobi-Naivasha Standard Gauge Railway (SGR) are expected to rake in up to Sh60 billion. National Construction Authority (NCA) executive director Daniel Manduku said the main contractor, China Road and Bridge Construction (CRBC), had forwarded a list of sub-contractors it entered joint venture agreements with for the Sh153 billion project. The construction will see Nairobi connected to Ol Karia geothermal fields through a railway line traversing Nairobi, Kajiado, Narok and Nakuru counties. “The contractor has gone beyond our 30 per cent project cost allocation threshold for local contractor involvement and this is the best way to enhance capacity of local contractors to handle large contracts as well as help Kenya workers gain the much-needed experience in handling big projects,” he said. Speaking on the sidelines of the fifth International LafargeHolcim Awards for the  Middle  East and Africa media briefing ceremony in Nairobi, Dr Manduku said another 40 Kenyan contractors had also benefitted from the 30 per cent share of local projects’ currently being implemented by foreign firms, mostly China. Some of the projects include commercial and residential Highrise buildings in Nairobi as well as ongoing infrastructure projects in various parts of the country. “NCA is strictly following up on all multibillion-shilling projects to ensure foreign companies incorporate local firms in executing them. This will facilitate technology transfer as well as help local companies enhance their ability to manage big projects and also build a name for themselves,” he said....