Tourism currently contributes 10.5% to the Country’s GDP and is projected to grow at 5% per annum up to the year 2025 Cruise tourism is today one of the most dynamic and fastest growing segment of the leisure industry worldwide generating US$38bn in economic activity in 2015 Travel services or tourism is a key services area for the country, a priority in Vision 2030 and is one of the fastest growing exports in Kenya, representing 18.3% of total exports TMA supporting $1m in development of ultra-modern cruise terminal facility and a further $200k for implementing the Kenya Tourism Development Strategy 2030 Mombasa, Kenya, 16th December 2016 – A ground breaking ceremony at the Port of Mombasa has signalled the commissioning of works to develop ultra-modern cruise ship terminal facilities at berth 1. The event was witnessed by the Cabinet Secretary, Tourism, Najib Balala, Governor, Mombasa County, H.E. Ali Hassan Joho, TradeMark Africa (TMA) Director General, David Stanton, Senior Director, Business Competitiveness, Lisa Karanja, Kenya Country Director, Ahmed Farah and Kenya Ports Authority (KPA) Managing Director, Catherine Mturi-Wairi. The project which will cost $2m is jointly funded by TMA ($1m) and KPA ($1m). Travel services or tourism is a key services area for the country, a priority in Vision 2030 and is one of the fastest growing exports in Kenya, representing 18.3% of total exports. However, the sector has a series of challenges which include the need to improve product development and leverage investments in new products especially at the county...

The private sector in East Africa has asked Tanzania to harmonise the preferential treatments it offers to transit goods as a way of encouraging use of the central corridor. While Rwandan trucks transiting through the central corridor (Dar es Salaam Port) each pay $150 (Shs535,000); other East African member states such as Uganda are charged $500 (Shs1.7 million) per truck for goods in transit. Mr Kassim Omar, the chairman Uganda Clearing Industry and Forwarding Association, who is also East Africa Business Council (EABC) vice chair for Uganda, said: “Indeed, the Dar es Salaam Port has improved. But they need to harmonise the transit fees to make doing business in the region less costly.” Mr Omar, together with other EABC members, had paid a courtesy visit to Ambassador John Kijazi, chief secretary, office of the president of Tanzania. Value Added Tax The EABC officials further urged the Tanzanian government to remove the recently introduced 18 per cent Value Added Tax (VAT) on ancillary services rendered to transit goods such securing, cargo inspection, preparation of customs documentation, container handling and storage of goods to be transported. Mr Kassim said though the VAT is levied on companies based in Tanzania, the tax is finally transferred to owners of the transit goods who are later supposed to pay VAT in destination country on arrival. Achievements EABC chairman, Mr Audace Ndayizeye, commended president John Pombe Joseph Magufuli as chair of the EAC summit for the remarkable progress towards the realisation of the regional integration process....

The government has launched the construction of the first ever cruise ship terminal at the Mombasa port at a cost of Sh350 million. Tourism secretary Najib Balala Friday said Sh250 million of the construction cash will come from the Kenya Ports Authority while Sh100 million is from TradeMark Africa. The project involves the modernisation of an old building at the port’s berth number 1. It will be rehabilitated into a world-class cruise terminal. Speaking at the Port of Mombasa, when he officially launched the construction of  terminal Friday, Mr Balala said the project  is expected to be completed in July next year. The tourism CS noted that the terminal will be ready for use when the next cruise tourism season begins in September 2017. “The availability of a cruise terminal at the port of Mombasa will be a game changer to the tourism industry as it will help attract more international tourists to the country,” he said. Mr Balala said the facility would offer services to tourists when they arrive at the port or when departing for other destinations. “Over the years, there has been no terminal at the port to cater for tourists who arrive by sea. But I am glad that by next July we shall have a modern cruise ship facility,” he added. Mr Balala said he was impressed that cruise tourism was on recovery with two cruise ships having arrived this month alone with more than 1,000 tourists and crew. Tourists who arrive in the country...

MOMBASA (Reuters) - Kenya on Friday started constructing its first cruise ship terminal at its Indian Ocean seaport of Mombasa, hoping to boost tourism which brings in a substantial portion of the east African country's foreign exchange earnings. Cruise ships currently use the main cargo terminal at Mombasa. The new facility will be the seaport's first terminal customised for the luxury vessels. The 350 million Kenyan shillings ($3.4 million) terminal is being constructed under joint funding by the Kenya government and a private firm, Trade Mark East Africa. Mombasa seaport's managing director, Catherine Mturi, said they expected the terminal to boost the facility's cruise tourist arrivals by an extra 140,000 visitors annually and generate $52 million in the same period. Last year, 10 cruise vessels carrying 6,000 tourists called at the port and the number is expected to rise this year, Mturi said. “We are very keen on improving our port in this area to attract more passenger vessels and fully exploit the great potential that exists in our Blue Economy,” she said. Piracy in the Gulf of Aden and the Indian Ocean slowed cruise tourism in the region, but in recent years it has been picking up as naval patrols and deployment of armed guards on ships boosts security. ($1 = 102.1000 Kenyan shillings) (Reporting Joseph Akwiri; Editing by Mark Potter and Elaine Hardcastle) Source: Yahoo Sports

A Sh350 million cruise ship handling facility has been launched at the port of Mombasa. The state-of-the-art facility will replace Mombasa Port Shade 1 and 2 established in 1926 and which has been handling cruise liners. While commissioning the facility yesterday, Tourism Cabinet Secretary Najib Balala said the project will be a game changer and is expected to be completed in July 2017. Mr Balala, who was flanked by his Principal Secretary Fatuma Hirsi Mohamed, revealed that TradeMark Africa contributed Sh100 million while Kenya Ports Authority pumped in Sh250 million towards the project. Mombasa Governor Ali Hassan Joho, TradeMark Africa's David Stantton and KPA General Manager (infrastructure development) Abdulahi Samatar were present during the launch. Mr Joho has pledged assistance towards making Mombasa cruise tourism destination of choice and challenged key players to work with other stakeholders in seeking sustainable tourism and to create the much-needed synergy in development matters. ''Our beach tourism still faces myriad problems. We are now diversifying and hope to fully tap into the Meeting, Incentives, Conference and Exhibitions' and Cruise tourism which have the potential to grow tourism traffic,'' said Balala as he introduced the newly appointed Kenya Tourism Board boss Betty Radier. Dr Radier said she will take it upon herself to urge the tourism marketing agency to establish a unit to work closely with other stakeholders to aggressively market Mombasa Port as a cruise port of call. Balala said international tourist arrivals between January and October have increased by 16 per cent. Source:...

Kenya and Tanzania are among African countries likely to face a drop in foreign aid as the new US administration cuts spending to create room for increased infrastructure expenditure, according to a new report. The report by the Institute of Chartered Accountants in England and Wales (ICAEW) says the Trump presidency raises the risk of the US rolling back development aid, thus affecting dependent countries such as Kenya, Tanzania, Ethiopia, Nigeria and the Democratic Republic of Congo. The accountancy and finance body said that signs of an expansionary fiscal stance under the Trump administration, coupled with spending cuts to build dollar reserves for infrastructure development, are likely to lead to a decrease in aid to African countries. “Aid is probably the main channel through which a change in US policy under a new president could impact Africa,” states the fourth quarter (2016) report commissioned by ICAEW and produced by partner and forecaster Oxford Economics. “Policymakers and businesses across the continent will be keen to see President-elect Trump’s plans for development policies once he takes office,” the report adds. Donald Trump is expected to be formally inaugurated as the country’s 45th president on January 20, 2017. According to the report, and drawing on insights from the Organisation for Economic Co-operation and Development (OECD), the US is sub-Saharan Africa’s major donor in bilateral official aid, with over $9 billion distributed to the region to date. It is followed by the United Kingdom, with just under $4 billion distributed, and France with just over...

The African Development Bank will become the single largest donor for Uganda’s agriculture sector, when it releases $195 million for two projects. But experts are not convinced that this funding will yield the expected results unless there is improved policy co-ordination and implementation by government agencies. The AfDB announced during a Feed Africa Strategy meeting in Kampala recently that it will partner with the government and the private sector to increase investment in agricultural productivity, value addition and value chains development, including marketing and branding of homegrown products. The Bank said $110 million will be used to support the Agriculture Value Chains Development project, which is at the appraisal stage, while the remainder will fund the Agriculture Infrastructure Development Programme – still at identification stage. Being rolled out The Feed Africa Strategy is a $24 billion, 10-year investment plan that is being rolled out across Africa to transform the agriculture sector by 2025. The money from the AfDB is $34 million shy of the $229 million that Uganda government allocated to the agriculture sector in the 2016/17 budget. The share of the budget that the Uganda government allocated to agriculture is way below the African Union’s 2003 Maputo Declaration — that called for 10 per cent allocation of the total budget to the sector — and the revised 2015 Malabo Declaration on accelerated agricultural growth and transformation. But Dr Joseph Muvawala, executive director of the National Planning Authority, said the argument about percentages is misguided, adding that focus should be...

A global assembly of legislators from 27 European Union (EU) states kicks off in Nairobi Monday, providing Kenya with yet another platform to discuss the Economic Partnership Agreement (EPA). Also attending the 32nd Session of ACP-EU Joint Parliamentary Assembly (JPA) are lawmakers and parliamentary officials drawn from 79 countries in Africa, Caribbean and Pacific (ACP). President Uhuru Kenyatta is set to preside over the opening ceremony of the high level meeting, which will be hosted for the first time on Kenyan soil. The EPA gives East African Community (EAC) member states duty and quota-free access of their goods to the EU markets as long as they meet set health and safety standards. The EPA needs to be approved by all EAC member states for it to take effect. Currently, only Rwanda and Kenya have signed the deal with the EU. The EU parliament has since extended the signing deadline to February. If the EPA is not ratified by the February 2017 deadline set by the European Union, Kenyan exports to the economic bloc will be subject to duties, eroding their competitive edge. Aside from the EPA, the forum is also expected to discuss resettlement of refugees in their home countries and presidential term limits. “There is strong international and domestic support for presidential term limits and it would make for interesting debate at ACP-EU plenary,” said Joyce Laboso, leader of the Kenyan delegation. The forum will also feature debates on ‘The Demographic Growth: Challenges and Opportunities’ and ‘The Impact of...

Chinese investors have launched a multi-billion-shilling industrial park in the Export Processing Zone (EPZ). Two Chinese companies are investing Sh20 billion in the Sino-African Incubation Park, which will be located in Athi River. The investment, a joint venture between CIFAL International Ltd and China International Investment, will create a 200,000-square metre (m2) industrial park inside the 60-acre EPZ grounds. Speaking during the launch, CIFAL International Managing Director Anna Tao said construction of the project will be undertaken by Qingjian International Group Ltd in four phases over the next three years. The initial phase will be an investment of an estimated Sh500 million for a 500m2 promotion centre and a 10,000m2 industrial park. The incubation park will support African companies in technology, manufacturing and production and provide value-added services to help them export their products to global markets. It will also have an entrepreneurial hub to support women and youth in setting up businesses. OPEN FOR BUSINESS “From investment, construction, operations, industrial incubator, trade platform services, equity investment and other projects, the Sino-African Incubation Park will be a solid bridge to connect Sino-African industries and introduce competitive edge of industries in Kenya,” said Ms Tao. “The incubation park will also support local industries with technology, product supply and other capacity building.” The development comes hot on the heels of another Sh10 billion investment by other Chinese investors who are setting up a construction material supermarket. The supermarket will sit on 29.6 acres in Athi River, Machakos County and is funded by renowned...

East African Business Council (EABC) is an important platform in deepening East African Community (EAC) integration through learning and sharing best practices from other regional economic communities. This was said by Chief Secretary (CS), Ambassador John Kijazi, during the courtesy visit by members of the EABC on his office in Dar es Salaam on Monday. Ambassador Kijazi pledged to forward EABC concerns to President John Magufuli and to other levels of the government for action. Liberalisation of service sector, harmonisation of taxes, freer movement of workers and local content were among other burning issues brought to the attention of the CS in a bid to advance the EAC integration Agenda. The EABC vice-Chair, Uganda, Mr Kassim Omar, appreciated the government efforts to improve efficiency at Dar port but asked for removal of VAT on ancillary services rendered to transit goods. “Indeed, the Dar es Salaam port has improved,” he said, mentioning the ancillary services rendered to transit goods such as stevedoring, lashing and securing, cargo inspection, preparation of customs documentation, container handling and storage of transported goods to be transported. He said though VAT is levied on companies based in Tanzania, the tax is finally transferred to owner of the transit goods who are later supposed to pay VAT in destination country on arrival of goods. He urged the government to harmonise the preferential treatments it offers to transit goods services to encourage use of central corridor exemplifying, while Rwandese transit trucks pay 150 US dollars. Other EAC countries pay...