Kenya Ports Authority (KPA) chairman Danson Mungatana has dismissed a threat by the Mombasa County to take over the management of the port. Mr Mungatana said the Mombasa port was both a national and international facility serving the country and neighbours like Uganda, Rwanda and parts of the Democratic Republic of Congo. He noted that the port is a national asset as per the KPA Act, which makes Mombasa governor Ali Hassan Joho’s threat to take over the facility unlawful. “There is no way the Mombasa governor can take over the port as it is legally a national asset,” he said. “The governor cannot handle issues dealt with by heads of State.” Mr Mungatana pointed out that when Ugandan president Yoweri Museveni has an issue over the port he consults President Uhuru Kenyatta and warned that such a takeover could see Kisumu, Eldoret and Nairobi counties also lay claim to the port facilities in their areas. Mr Joho has been lobbying the national government to devolve the port, saying the facility is a Mombasa county asset and warned he would mobilise Coast residents to take over the management of the facility. The governor claimed residents do not benefit as the revenue generated at the facility goes to the national government. Efforts by the county to impose a Sh174 ($2) levy on every one-tonne of cargo handled at the port hit a snag last year after KPA bosses said they had not been consulted on the matter. The county budget for...

The year 2014 has continued to register vital achievements for the East African Community integration agenda. It is a year in which we have witnessed more landmarks in the integration process than some people had probably envisaged. Most of these developments formed the agenda and resolutions of the 12th extraordinary heads of state summit on April 30, 2014 in Arusha, Tanzania. During the summit, the heads of state agreed on key milestones in the integration process, among which was embarking on the processes for political federation – the fourth and remaining pillar of the EAC integration. They have already gone past protocols on: Customs Union (signed in 2005), Common Market (signed in 2010) and the Monetary Union signed in (November 2013). The first two protocols are already under implementation while the third is under the process of ratification by the partner states. The community has been undertaking consultations in all partner states on the model and structure of political federation. Accordingly, the heads of state received a report from the council of ministers on this process. The summit directed the council to initiate a process of drafting a constitution for political federation and to develop a road map on what the constitution-making process would involve. The journey towards a political federation is, therefore, no longer speculation. It has started with the full support from five heads of state of the partner states. Held under the theme, One People, One Destiny: Building Sustainable Structures for Deeper Integration, the summit also considered...

Kenya’s National Single Window System, now known as Kenya TradeNet, was officially launched in Nairobi by Rwanda President Paul Kagame at a ceremony witnessed by leaders from six African nations in Nairobi. The system is an electronic platform that enables Kenya to clear import cargo — which is mostly destined for the neighbouring land-locked economies of Rwanda, Uganda, South Sudan, Burundi and Democratic Republic of Congo — cheaper, faster and more efficiently. The launch was witnessed by President Uhuru Kenyatta, Uganda President Yoweri Museveni, Tanzania Prime Minister Mizengo Pinda and Burundi Second Vice President Gervais Rufyikiri. Common platform Kenya TradeNet is the first comprehensive Single Window in the East African Community, and one of very few in the world that integrates a heterogeneous government agencies’ ecosystem onto a single common platform, streamlining clearance processes for sea, air and land cargo. It has been developed by CrimsonLogic, a leading provider of eGovernment solutions and services headquartered in Singapore, under a government contract between Kenya and Singapore. The system is CrimsonLogic’s 18th live trade facilitation implementation so far, and its first major project in Kenya. With the country’s annual trade volumes exceeding $22.4 billion (Sh1.9 trillion), Kenya TradeNet is a flagship project under Kenya’s Vision 2030 programme to position the country as a key trade hub in Africa. The system is expected to reduce cargo dwell time at ports, and improve the ease of doing business. It provides a single point of access for the Kenyan trading community to electronically submit and...

Infrastructure deficit is a big problem in Africa estimated to reduce industrial production by 40 per cent and making the cost of doing business very high. Massive investment is required to finance the development of electricity, roads, railways, airports, seaports and waterways as well as ICTs. Countries, sub-regions and the continent must scale up mobilisation of resources for infrastructure financing, with an affordable and diversified mechanism that would go a long way in reducing the burden on governments which are limited by how much revenue can be raised in any given financial year. Countries need to enhance their efforts in accessing potential global sources of finance for Africa’s infrastructure needs. The G-20 established a High Level Panel (HLP) for infrastructure, whose goal is to mobilise such finances. At the AU level, a Presidential initiative, Programme for Infrastructure Development for Africa (PIDA), is expected to synchronise the long term development of infrastructure in Africa, and with the collaboration of African Development Bank (AfDB), the African Union Commission, the Regional Economic Communities like the East African Community (EAC), as well as NEPAD, it is envisaged that critical investment as well as resource gaps will be addressed. Huge finances will be required to start new infrastructure projects as well as to maintain existing investments. To keep up with the required pace for sustainable socioeconomic development, dictated by population growth, rural urban migration and need for industrialisation, the continent needs new generation capacity for up to 7000 megawatts a year. Because of ability by...

South Sudan is among several East African countries earmarked to benefit from the $3.8 billion railway line network that will mainly be funded by China with a 10% contribution from Kenya. The deal, which was finalised in Kenya, reportedly seeks a rail link between its port of Mombasa and the capital, Nairobi, with the inaugural phase linking Uganda, Rwanda, Burundi and South Sudan. Construction work, officials said Sunday, starts this October with China Communications Construction Company as main contractor of the three-year project. “This project demonstrates that there is equal cooperation and mutual benefit between China and the East African countries and the railway is a very important part of transport infrastructure development,” said Chinese prime minister Li Keqiang. The regional Standard Gauge Railway Protocol (SGR) is reportedly part of the northern corridor integration project linking the Great Lakes nations to Mombasa port. “The overall objective of the SGR protocol is to jointly develop and operate a modern, fast, reliable, efficient and high capacity railway transport system in the four countries and Great Lakes region at large,” party reads a communique issued Sunday. Speaking at the signing ceremony, Kenyan president Uhuru Kenyatta said the new railways network will not only unify East Africans, but also bolster prosperity for all. “This project is a reminder of the solidarity between East Africa in particular, Africa i general and Asia,” Kenyatta said while urging East African partner countries to treat each other with sincerity and equality to consolidate mutual trust for development. Uganda’s...

President Uhuru Kenyatta has called on African leaders to work together in removing obstacles that hinder movement across the continent. He was attending the World Economic Forum on Africa hosted by Nigeria under very tight security in Abuja. The President, who was accompanied by First Lady Margaret Kenyatta, said free movement of people, goods and services would increase intra-Africa trade and help the continent achieve its development targets. “Lack of political will and negative perception should not be allowed to undermine Africa’s integration and economic growth,” President Kenyatta said during a panel discussion. He spoke at a time when leaders of the East African Community (EAC) have upped efforts that will culminate into a Monetary Union and eventually a political federation. Meanwhile Kenya and Nigeria signed a number of agreements to boost trade and investment between the two countries. The President said leaders should not block African investors from investing in the continent by imposing stiff regulations including cumbersome visa requirements. “We need to facilitate our business people to trade within the continent more freely,” he said. President Kenyatta, who is the current chairman of the East African Community, discussed steps the region has taken to improve trade among East African member states. He observed that the advent of the single tourist visa has eased travel and effectively turned all the participating countries of the region into a single tourist destination. President Kenyatta said the move gave impetus to the extension of the visa scheme to business people who can...

Some progress has been made in talks on Economic Partnership Agreement (Epa) between the East African Community and the European Union. Richard Owora, the head of corporate communication and public affairs at EAC Secretariat, told The New Times that negotiations on the Rules of Origin Protocol, including the product specific rules, successfully ended on March 27. “In addition, both parties agreed on provisions for a comprehensive dialogue on agriculture & rural development policy and transparency on domestic policy measures relating to agricultural support,” Owora said. However, some issues remain outstanding and had been referred to a ministerial meeting scheduled for June. They include export taxes, domestic support and export subsidies, and relations with the Cotonou agreement on prohibition of proliferation of weapons of mass destruction, human rights and corruption. Others are good governance on tax matters and measures to mitigate effects of customs union agreements concluded with the EU. The Ministry of Trade and Industry is monitoring the talks being coordinated by the Ministry of EAC Affairs. Peace Basemera, the officer monitoring the negotiations, said the EAC position of export taxes is that member countries should be free to “impose tax whenever they need to get revenue from exports, and this comes after fostering the development of domestic infant industries” as a temporary measure. Another element is that a country or the bloc cannot be compelled to export food when there is scarcity at home. The EU head of delegation in Tanzania, Filberto Sebregondi, recently said the two sides would...

Regional business leaders and officials from trade facilitation institutions will meet tomorrow to discuss mechanisms on how to solve challenges facing business, especially cross-border trade in the East Africa region. The meeting, that takes place in Arusha, Tanzania, also seeks to create a direct link between traders and officials from regional tax bodies, bureaus of standards and customs, according to Andrew Luzze, the East African Business Council executive director. “We are going to examine measures put in place to address the challenges we face and how to sensitize the business community to understand the role of trade facilitation institutions across the region,” Luzee said in a statement. He said there are still several challenges facing businesses across the EAC block despite gains made in the recent past. These include poor infrastructure, lack of regional enforcement mechanism to address non-compliance to regional instruments, stringent requirements for pre-packaged foods, harmonized border management issues including border operating hours, varying tax regimes and numerous institutions involved in the levying and inspection of goods. “We expect to come up with recommendations and an action plan that will guide us on how to move forward by the end of the meeting,” Luzee told The New Times. Denis Karera, Rwanda’s representative and Council board member, said the meeting is in line with the Council’s obligation to facilitate regional trade. The only way we can facilitate trade is to sensitize our members about the roles played by these institutions. However, it is also imperative that a dialogue that...

On June, 25th 2013, Heads of State of Rwanda, Kenya and Uganda held a tri-lateral meeting in Entebbe Uganda. The outcome was agreements on several different issues dealing with regional infrastructure development, energy, trade facilitation and the East African Political Federation. During this meeting the three Partner States were allocated different jobs to speed up implementation and strengthen regional integration. Rwanda was to spearhead the Single Tourist Visa and Single Customs Territory implementation, plus use of identity cards/voters/student cards as travel documents to the three states. According to the Northern Corridor Integration Project Coordinator Monique Mukaruliza, Rwanda has done well in meeting the set targets or deadlines. “The use of IDs/voter/students cards as travel document and the Single Tourist Visa are effective from January 2014. The Single Customs territory for Kenya, Uganda and Rwanda is effective from October 2013,” Mukaruliza said. ”Such quick implementation of projects is beneficial to not only Rwanda but also other Partner States,” she said. She gave an example of use of IDs as travel documents saying this was going to ease the movement of people and services hence help the region develop. “The Single Tourist Visa will promote tourism industry in the region, plus the Single Customs Territory will ease clearing of goods which will be done at the first point of entry and later circulate freely in the three member states,” Mukaruliza said. “Other projects to be spearheaded by Rwanda are Air Space Management and Connectivity plus the Defense and Security Cooperation and here...

Chinese premier Li Keqiang wrapped up his visit to Kenya on Sunday, saying the three-day trip yielded “fruitful” results. At a meeting with Kenyan deputy president William Ruto, Li said he had reached broad consensus with Kenyan leaders and witnessed the signing of a series of cooperative documents. China and Kenya are both at a crucial stage of development and revival of their economies, so the cooperation between the two countries has great potential, he said. For his part, Ruto said Li’s visit has greatly upgraded Kenya-China and Africa-China cooperation and will bring about more benefits to Kenyans as well as African people. Earlier in the day, China and Kenya signed a co-financing deal to build a major railway linking Nairobi to Mombasa, a critical infrastructure project to boost regional trade and deepen integration in East Africa. Li, together with presidents of Kenya, Uganda, Rwanda and South Sudan as well as representatives from Tanzania, Burundi and the African Development Bank, witnessed the signing of the agreement. Speaking at the signing ceremony, Li said the presence of the African leaders and their representatives demonstrated African countries’ common desire to develop the railway network in East Africa. A country has to improve transportation infrastructure before its economy takes off, Li said, adding that China is ready to share its technology and experience in railway construction with all parties and cooperate with them in project design, construction, equipment, management, personnel training and financing. China is willing to join hands with Africa to build...