President Uhuru Kenyatta Thursday directed the Kenya Revenue Authority to allow the Shimoni Port in Kwale County to operate around the clock. "We want this to be a major fishing port apart from just bringing in goods," he said. Locals had complained that they were unable to effectively trade on the Kenya-Tanzania border due to time constraints. Shimoni Port is the major link between the area and parts of northern Tanzania, including the islands of Pemba and Zanzibar. Entry point However, the port is said to be a major entry point for contrabands and KRA has been strengthening surveillance at the facility. The President said design work for expansion of Shimoni Port was on. "We want this to be a major fishing port apart from just bringing goods," he said. President Kenyatta, who is campaigning in Kwale along with deputy William Ruto, also asked residents in Lunga Lunga to support and vote for Jubilee in the August 8 elections. "This time we should walk together to end poverty and create jobs for youth," he said. Built roads He said his administration has built roads, increased electricity connectivity and water supply and also issued land title deeds to locals. He said more than 40,000 title deeds had been issued to residents in the county. He said the Jubilee government was keen on implementing free secondary education from January next year. "The work of parents now is to deliver and take care of the child," he said. Source: Business Daily

State minister for Transport Aggrey Bagiire, last week on Thursday asked his Tanzanian counterpart to harmonise the preferential treatment his country offers to transit goods as a way of encouraging the use of the Central Corridor, Uganda’s alternative access to the sea. Mr Bagiire, while signing a Memorandum of Understanding (MoU) on reviving inland transport on Lake Victoria and development of a railway as part of the Central Corridor, to implore Tanzania to reduce the high road user charges. Currently, trucks from Uganda are charged $500 (Shs1.7m) each yet Uganda charges only $40 (Shs140,000) per truck from Tanzania. The exorbitant cargo transit fees, Mr Bagiire said, were discouraging the use of the port of Dar ss Salaam by Ugandan traders since it increases the cost of transportation. According to a statement issued by the Ministry of Foreign Affairs, which coordinated signing of the MoU, Mr Bagiire asked Tanzania to “consider revising the rates downwards” to attract more traders to use the route. Dar es Salaam is Tanzania’s principal port with a rated capacity of 4.1 million down weight tonnage (dwt) dry cargo and six million dwt bulk liquid cargo. Mr Bagiire signed the MoU on behalf of Uganda while Prof Makame Mbarawa, the Transport minister, signed on behalf of Tanzania in Dar-es-Salaam. The signing was witnessed by the Charge D’Affairs at Uganda High Commission in Dar-es-Salaam, Oscar Edule, Uganda Railways Corporation (URC) managing director Charles Kateba, and other officials from the two countries. The MoU also reinforces proposed plans by...

Local coffee farmers are set to eat big following a renewal of a partnership between the National Union of Coffee Agribusiness and Farm Enterprises (Nucafe) and Café River, an Italian large scale coffee roaster. This is a development that opens more market opportunities for Uganda’s coffee across Europe and beyond. According to Mr Joseph Nkandu, the Nucafe executive director, the move is a continuous business relationship that has been running for seven years between the farmers’ body and Café River, a company with a global repute in high end coffee roasting, grinding and reselling. A delegation from Italy was in the country recently on a fact finding mission about Nucafe membership, mode of operation on promoting social entrepreneurship in coffee agribusiness agenda and value chain management system. “What informed their coming was a review of the 7-year partnership that we have had with River Café and also how we can move forward because the market is becoming sophisticated. ,” Mr Nkandu said. Source: Daily Monitor

The East African Community is in the process of signing an economic partnership agreement with the European Union. So far, only Kenya and Rwanda have signed the agreement. Burundi is reluctant to sign the agreement in the wake of economic sanctions imposed on it by the EU. Meanwhile, Tanzania has commissioned a study on the effects of signing the agreement on the region. Uganda has stated that it will sign the agreement only if all the EAC member states reach a consensus, which seems difficult at this stage. However, of interest are the possible effects of such an agreement on the region as highlighted in the study commissioned by Tanzania. The research seems to conclude that it is not advisable for the EAC to sign the agreement due to a number of negative effects including the danger posed to local industries and reduced revenue from tax. The effect of the agreement, according to the study, is that it will open up the market to cheaper imports from the EU therefore posing danger to local industries. Furthermore, due to the reduction of taxes on such imports, revenue will be less. These are some of the reasons highlighted against the agreement. However, Kenya and Rwanda have signed the agreement as it gives them access to more markets. While I have not looked into the economic impact of such agreements, I believe that EAC member states can resort to using domestic laws to protect the local industry from whatever harmful effects that may...

As Kenya's general election beckons the race has effectively narrowed down to two horses. Either, opposition leader Raila Odinga , or incumbent Uhuru Kenyatta will be Kenya's president after August 8. The bid for State House has attracted eight presidential contenders in total. But in recent weeks the focus has shifted to Odinga's National Super Alliance and Kenyatta's Jubilee Party, both of which have recently unveiled their manifestos. While the manifestos look good on paper, depending on one's political leaning, they are unlikely to have a significant impact on how Kenyans will cast their votes. The majority of the electorate have already decided on their preferred candidate. Most will vote on the basis of their tribal affiliations. The latest polling by Infotrak shows that only 8% of Kenyans are undecided on which presidential aspirant to vote for. Despite the fact that party manifestos will not shift voting patterns, they do provide a policy snapshot of what the parties would prioritise were they to form the next government. The fact that neither the Jubilee Party nor the National Super Alliance manifesto takes much account of relations between Kenya and its peers in the East African Community, is noteworthy. And disturbing. A study of the two manifestos shows that neither has a coherent plan for regional integration. This should concern Kenyans, as well as the country's neighbours. Relations between Kenya and its neighbours aren't as they could be. A few months ago cabinet secretary for foreign affairs Amina Mohamed accused Kenya's neighbours of not backing her candidature for the chairmanship of the African Union commission. Uganda openly disputed...

The cost of transporting goods has dropped by over 30% for Uganda destined goods A delegation from Uganda to the World Trade Organisation in partnership with Trade Mark East Africa (TMA) has impressed Swiss investors with how efficient Uganda’s borders during a  a side event on Trade Facilitation on the sidelines of the Sixth Global Review of Aid For Trade in Gevena. The objective of this session was to show the extent to which Uganda with the support of TMA had undertaken deliberate and strategic moves to ease the cost of doing business. Amelia Anne Kyambadde, Minister of Trade, Industry and Cooperatives together with Frank Matsaert, Chief Executive Officer of TMA were on the panel to show case the One Stop Boarder Post (OSBP) in Busia. A live link connection was done to feed directly into the panel discussion to an audience of over 500 trade facilitation enthusiasts. A video highlighting the OSBP processes at Busia was showcased. The three-minute video highlighted: the One Stop Border Post; the Authorised Economic Operator (AEO) Scheme; and the Regional Electronic Cargo Tracking System. During the discussion, the Kyambadde fielded several questions moderated by Matsaert on why the OSBP; the challenges that obtained before; and the benefits of the OSBP in terms of cost reductions with regard to movement of cargo and clearance of goods. Matsaert observed that TMA’s efforts to facilitate trade in East Africa had focused on removing bottlenecks and improving efficiency along the main transport arteries. He noted that, after the...

Plans to extend the standard gauge railway (SGR) from Naivasha to Kisumu have started taking shape after the State submitted an environmental impact assessment report. The Kenya Railways Corporation (KRC) is seeking approval for the project that will cost about Sh370 billion ($3.59 billion), funded by the Exim Bank of China. The 255km-line is the third phase of the SGR, that is set to push the total cost of President Uhuru Kenyatta’s administration pet project to Sh847 billion. “The proponent Kenya Railways Corporation is proposing to construct a 255 km SGR track between Naivasha and the proposed Kisumu Port,” an audit submitted to the National Environment Management Authority (Nema) reads. “This project is phase 2B of the ongoing SGR construction and will cut through four counties, namely Narok, Bomet, Kericho and Kisumu.” Even though the SGR is targeted to be built up to the border town of Malaba, experts say linking Kisumu port to Mombasa is seen as an early landmark as it will allow cargo to be transported over lake Victoria to other East African states, making the SGR a more viable economic project. For decades, Kisumu port registered robust business activity helped by a reliable railway system and maritime vessels that ferried cargo to ports such as Mwanza and Bukoba in Tanzania and Jinja and Port Bell in Uganda. Lake port Construction of a lake port is planned on the shores of Lake Victoria in Usare village, boosting trade with Kenya’s regional neighbours via Uganda’s Port Bell, Tanzania’s Mwanza Port...

State minister for Transport Aggrey Bagiire, last week on Thursday asked his Tanzanian counterpart to harmonise the preferential treatment his country offers to transit goods as a way of encouraging the use of the Central Corridor, Uganda’s alternative access to the sea. Mr Bagiire, while signing a Memorandum of Understanding (MoU) on reviving inland transport on Lake Victoria and development of a railway as part of the Central Corridor, to implore Tanzania to reduce the high road user charges. Currently, trucks from Uganda are charged $500 (Shs1.7m) each yet Uganda charges only $40 (Shs140,000) per truck from Tanzania. The exorbitant cargo transit fees, Mr Bagiire said, were discouraging the use of the port of Dar ss Salaam by Ugandan traders since it increases the cost of transportation. According to a statement issued by the Ministry of Foreign Affairs, which coordinated signing of the MoU, Mr Bagiire asked Tanzania to “consider revising the rates downwards” to attract more traders to use the route. Dar es Salaam is Tanzania’s principal port with a rated capacity of 4.1 million down weight tonnage (dwt) dry cargo and six million dwt bulk liquid cargo. Mr Bagiire signed the MoU on behalf of Uganda while Prof Makame Mbarawa, the Transport minister, signed on behalf of Tanzania in Dar-es-Salaam. The signing was witnessed by the Charge D’Affairs at Uganda High Commission in Dar-es-Salaam, Oscar Edule, Uganda Railways Corporation (URC) managing director Charles Kateba, and other officials from the two countries. The MoU also reinforces proposed plans by...

As long as the cost of Internet facilities and services remains high, Uganda says it will not be able to favourably compete in electronic commerce with the developed world. Until the least developed countries (LDCs), including Uganda are in position to fairly compete in the digital space, government will remain opposed to regulation that disadvantages the participation of poor nations in electronic trade. Electronic commerce or e-commerce is a term for any type of business, or commercial transaction that involves the transfer of information across the Internet. According to Trade minister Amelia Kyambadde, “…the need for multilateral rules on e-commerce is still too premature to be thought about.” Speaking last week at the panel discussion whose theme was promoting connectivity for LDCs, Ms Kyambadde said, LDCs have basic infrastructural challenges to deal with in building their e-commerce readiness. She said: “There is no level playing field. Reducing the digital divide would require a closer look at the cost of services such as data, infrastructure, and regulatory and institutional frameworks.” In her presentation as one of the panelists in a discussion held as part of the activities for the Sixth Global Review of Aid for Trade at the World Trade Organisation in Geneva, Ms Kyambadde argued that there is need to address issues of access, availability and affordability of ICT services and related products before rules are thought of. In Africa, about 25 per cent uses Internet as opposed to nearly 80 per cent in Europe; 65 per cent in Americas...

Civil society organizations have backed the East African Community (EAC) heads of states to ban the importation of secondhand clothes in order to build the capacity of cotton and textile industries within the region. “It is important that the decision by the heads of states to phase out secondhand clothes be supported in order to enable the EAC in general and Uganda in particular grow and enhance her local production capacity,” said Faith Lumonya. She is the programme officer of Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI). With specific reference to Uganda, the group argued that Uganda National Textile policy value chain analysis indicates that with added capacity at spinning, weaving and finishing stages, more revenue can be generated and more jobs could be created internally beyond the 2.5 million across the value chain. “As such, the EAC can implement measures to phase out secondhand clothes so as to boost her domestic industries,” the civil society groups told the media in Kampala. On February 20, 2015, the EAC heads of states directed the council of ministers to study modalities for the promotion of textile and leather industries in the region and stopping the importation of used clothes, shoes and other leather products from outside the region. This decision arose out of the need for the EAC to advance a market-driven integration by boosting manufacturing and industrialization; promoting forward and backward linkages and achieve structural transformation through high value addition and product diversification as stipulated in the EAC...