Archives: News

State to build cruise terminal at Mombasa port

Kenya has embarked on development of a new Cruise Terminal at the Port of Mombasa scheduled for completion by end of July just before the next cruise season. The cruise ship terminal will provide state-of-the-art facilities for cruise passengers and liners calling at the Mombasa port. It will include, a VIP lounge, immigration, customs, port health facilitation lounges, ample parking, food courts, duty free shops, forex bureaus and banking facilities. The government has invited cruise liners wishing to make Mombasa their home port for discussions on formulating  appropriate incentives and concessions. “I invite cruise itinerary planners, cruise liners and cruisers to consider Kenya and the region for their next cruise season and get to experience the Magical Kenya,” said Tourism Cabinet Secretary, Najib Balala. According to the CS, cruise liners are expected to enjoy priority berthing over all other types of vessels. They will get incentives including exemption from payment of light dues, disembarking and embarking charges and passenger dues.    Source:Media Max

Pipeline cuts fuel transport costs in fight with Tanzania

Kenya Pipeline Company Limited (KPC) has cut the cost of transporting fuel to neighbouring countries by nearly a third in a bid to win back business lost to Tanzania. Pipeline costs for products headed to Rwanda, Congo, Uganda, Burundi and South Sudan from the port of Mombasa will be $44.55 (Sh4, 579) per 1,000 litres, up from $59.32 (Sh6, 098). This will see the importers save about Sh1.52 per litre for fuel transported on the pipeline and picked in Kisumu or Eldoret for neighbouring countries. Countries such as Rwanda and Burundi have stepped up fuel imports through Tanzania’s main port in Dar es Salaam, arguing that Kenya’s route is expensive and experienced contamination of cargo. Mombasa is facing increased competition from neighbouring Tanzania where the government is expanding the port of Dar es Salaam and plans to spend $10 billion building a new one at Bagamoyo, 52 kilometres (32 miles) north. KPC managing director Joe Sang said the move to cut the cost will help the state corporation re-capture the lost regional petroleum market share. “We have lost our market share especially in Rwanda and Burundi. We must get this rightful share back and this calls for proactive and strategic thinking. We not only want to regain the lost market, but also extend our operation into new frontiers in the region,” said Mr Sang. The lower charges dubbed a promotional rate will start in April. The Kenya Transporters Association earlier said importers from regional countries were opting to route shipments...

EAC Polythene Materials Control Bill debate postponed until May

It remains unclear whether the East African Community Polythene Materials Control Bill, 2016 will ever be concluded as debate on it was on Wednesday adjourned by the regional Assembly now sitting in Kigali. Following a motion moved by Chairperson of the Council of Ministers, Dr Susan Kolimba, under the House’s rules of procedure, a key report on the Bill presented by the committee on agriculture, tourism and natural resources could also not be adopted. Dr Kolimba’s motion for adjournment –which may be moved without notice – under rule 30 of the Rules of Procedure of the Assembly was partly down to the fact that business leaders have requested for further consultations, while the Tanzanian government is yet to submit its views on the Bill. But MP Valerie Nyirahabineza (Rwanda), chair of the committee on agriculture, tourism and natural resources, remains optimistic that after they include more views from stakeholders during the next sitting in Arusha, in May, the Bill will be passed “without doubt.” “This is a Bill everyone wants, including members of the business community who have insisted on having further consultations. In May, we shall make amendments but ultimately the Bill will pass,” Nyirahabineza told The New Times after the day’s session. Earlier, during the session, Nyirahabineza presented a report in support of the Bill and reminded the Assembly that EAC Partner States are signatories to various international agreements on environment. “It should be noted that Polythene materials like plastic bags are a menace to the environment and...

Burundi Fails to Honour Contribution to EAC Budget

The government of Burundi could be sent to regional court for failure to pay even a single coin towards the east African community budget but continuing to depend on remittances from member states. A motion on the state of EAC budget for financial year 2016-2017, by Nancy Abisai (Kenya) showed that of the $8,378,108 needed from Burundi, it had contributed zero U.S dollars in this financial year and had arrears of $771,037 from the previous fiscal year. Each of the five EAC member states is required to make a contribution of $8,378,108 per financial year and required to pay before 31st December. For fiscal year 2016/17 remittances from Uganda were highest with 91.53 percent ($7,668,419), followed by Kenya at 52.4 percent ($4,395,707), Rwanda at 48.07 percent ($4,027,316) and Tanzania at 30.47 percent with $2.553.203. However, Fred Mukasa Mbidde ( Uganda) questioned why Tanzania performance is below 50 percent mark yet they are chairing the community. Other EALA lawmakers argue that Burundi’s failure to honour its contribution has led to the bloc’s failure to pay its suppliers and staff. For example by the end of March 32 senior staff at the EALA secretariat will  leave the assembly to seek greener pastures elsewhere. “Some of these states should be taken to court. We should punish such members to ensure partner states adhere to the treaty,”Dora Byamukama (Uganda) said. Abubakar D. Abdi Ogle suggested harsher measures requesting that defaulting member states should be stopped from any kind of operations until they honour their contributions...

EAC countries promise to do more to protect livelihoods of Lake Victoria basin communities

Members states of the East African Community under the Lake Victoria Basin Commission have held a joint regional policy steering meeting that looks at implementing programmes and projects aimed at improving the livelihoods of  people living in the Lake Victoria basin. Several programmes  are currently running under the Lake Victoria Basin Commission which include population, health and environment, Lake Victoria Environment Project and Lake Victoria Water Supply and Sanitation Programme. The Permanent Secretaries in the line ministries of water and environment from the East African Community states signed an assessment report of the progress that has been made in the last 6 month on the implementation of programmes aimed at improving the welfare, restoring life, the environment and livelihood of the people living in and around the Lake Victoria basin The Joint Steering Committee emphasized the need to continue to improve  current projects at hand to help mitigate the challenges faced by communities living in and around the Lake Victoria basin The national project coordinator revealed that  Uganda  has  made progress in  waste water treatment, solid waste management and alternative livelihoods for the people living around the Lake Victoria basin The Lake Victoria Basin Commission is expected to sit again after 6 months in another East African Community State where they will again review the progress of the Four programmes under way.   Source: NTV News

Rwanda unveils new incentives for Kenyan business investors

Rwandan High Commissioner to Kenya H.E James Kimonyo has unveiled new incentives to Kenya businesses wishing to establish or grow business in the country. “With just 12 per cent of inter-country trade among African nations there is so much opportunity and room for growth between us,” he said at the second edition of the Rwanda Business Forum at a Nairobi Hotel. The envoy unveiled new incentives to investors planning to invest in the country that together with Kenya are among the top ten fastest growing economies in the World. He cited the Standard Gauge Rail from Mombasa as an important development that will boost trade between the two economies. “Despite the dark past Rwanda had gone through we have moved on and are ready to proudly be part of the community of nations that every investor wants to come to,” he said. He added that the visionary leadership of President Paul Kagame has continued to ensure stability of the country, business reforms that inspire investors from near and far to invest their significant resources in Rwanda. Like Kenya, he said, Rwanda seeks economic development and long-term transformation by unleashing the potential of her citizens to be more productive and through beneficial partnerships with the private sector. Some of the new steps include zero rates for raw materials imported for the manufacturing industry. Ambassador Kimonyo whilst acknowledging that Rwanda was a landlocked nation is heavily investing in Air transport and that a new state of the art International Airport was currently...

EALA passes pro-women Bill

The East African Legislative Assembly sitting in Kigali for the fifth session of the Third Assembly from March 6-16, used the International Women’s Day marked on March 8, to pass a Bill that will among other things protect women and children against gender-based violence, force EAC partner states to provide free primary and secondary school education for all, and protect the rights of civilians during war. “There is a need to make primary and secondary education compulsory, accessible, all inclusive and available for free to all considering the pupil-teacher ratios,” said the chairperson of the committee on general purposes Dr Odette Nyiramilimo. The general purpose committee handled consultations on the Bill with the partner states. If the region’s presidents assent to it, their governments will be required to provide universal free primary and secondary education. Most EAC partner states are already implementing a form of free primary education. The law will also make EAC partner states more accountable for the deaths and plunder that governments through their armed forces mete out when there is internal conflict. Human rights abuses “In circumstances where conflicts have occurred, and in times of armed and other conflicts, partner states must take such steps as are necessary to prevent and eliminate incidents of human rights abuses,” reads the Bill. This Bill will affect countries where security forces have orders to shoot and kill civilians. Civil society organisations are excited that the region can now take to task South Sudan and Burundi, where recent conflicts have...

Uganda's business community invited to participate in Germany’s trade fairs

The President of the Uganda National Chamber of Commerce and Industry ( UNCCI), Olive Kigongo has tipped Uganda’s business community about markets in Germany. Kigongo told Uganda’s business community to prepar quality products and services that they can present in trade fairs in Germany. She told the business community that they have to foot their bills to attend the fairs because they were going to look for business opportunity. She said in the fairs Ugandans can find business partners. "A bird that does not fly does not know there are better gardens where to pick seeds," Kigongo said. This was during a function held at the residence of the German ambassador in Kololo, Kampala. At the function, presentations were made to Uganda's business community on how and why they can participate in trade fairs in Germany. The German ambassador to Uganda, Dr Peter Blomeyer urged Uganda's community to participate in over 186 trade fairs that take place in Germany every year. Blomeyer explained that the trade fairs would be a gateway to the international market for Uganda's products and services. "We need to raise interest of German companies to come to Uganda and Uganda companies to go to Germany. This can be done through trade fairs. We have big trade fairs in agriculture, tourism, technology, in all sectors," Blomeyer said. The ambassador said German products are durable, last a long time; they cost some money but save one from cheap products that need frequent repairs and replacement. The function was...

Experts warn on impact of trade agreements

Clash of minds was evident when a section of academics, economists and civil society members converged in Kampala to discuss the implications of free trade agreements on Industrialisation in Uganda and the entire East African Community (EAC) region as a whole. Special emphasis was on the EAC-European Union (EU) Economic Partnership Agreement (EPA), a deal which is reciprocal in nature. The EAC-EU EPA negotiations ended on October 16, 2014. Despite the 12 years of negotiations, the agreement is yet to be signed and ratified by all the five partner states. The EPA seeks to establish a reciprocal free trade area between the EU, which is a much more developed partner, and the EAC, a poor region. Civil society members argued that a trade agreement such as EPA has implications on the industrialisation of the country and the region, given its onerous provisions, among them; extensive liberalisation, contradictions in the liberalisation schedules and weak multilateral and bilateral safeguards. They also said such deals constrain the use of export taxes, triggers the rendezvous clause which brings in negotiations of new issues like investment, intellectual property, procurement, and competition, thereby constraining policy space that Least Developed Countries had fought hard to retain at world trade level. Politics involved Therefore, it is important to understand whether Free Trade Agreements such as EPA will promote industrialisation and its associated benefits in Uganda given the fact that the developed countries developed through use of protectionist tendencies in order to nurture their infant industries, and only opened...

Government plans to expand the main Nairobi-Mombasa highway

 The Kenyan government plans to expand the Nairobi-Mombasa highway from the current single lane to six lane modern highway and bids are likely to be invited soon, an official said on Sunday. State House spokesman Manoah Esipisu told a news conference in Nairobi that already a U.S. investor has expressed its interest in the Nairobi-Mombasa Expressway which is expected to ease traffic jams in Nairobi. "I can confirm U.S. investor interest in this Nairobi-Mombasa Expressway. Among the partners involved are Bechtel Corp., the United States’ largest construction and civil engineering firm, which will be supported in this endeavor by the United States’ Import-Export Bank and OPIC," he said. The U.S. Export-Import Bank is simultaneously working with Bechtel to secure investment for the 485-kilometre expressway which is intended to speed up commerce and travel between Kenya’s main port of Mombasa and cities throughout East Africa. OPIC’s role in the emerging deal would be to insure Bechtel against breach of contract. "We are hopeful that these discussions will bear fruit, and that Kenya will soon enjoy the new infrastructure on the Nairobi-Mombasa route," Esipisu said. "More importantly, though, this is a show of continued massive international investor confidence in our economy and our country," he added. According to Transport and Infrastructure Cabinet Secretary James Macharia the government plans to build the road through a Public Private Partnership. The 485km Mombasa-Nairobi highway is crucial for trade in the region since it connects the port to Nairobi and onward to the hinterland markets, including...