News Categories: Kenya News

Kenya’s SGR passenger, cargo volumes surge amid resumption of economic activities

Nairobi, Kenya | Xinhua | Passenger numbers and cargo volumes on Kenya’s standard gauge railway (SGR) trains maintained a steady climb in August, pointing to increased demand for the service following the reopening of the country as COVID-19 cases declined. Some 32,641 passengers used the SGR passenger train in August, up from 19,502 in July when the service was restored, according to the latest data from Kenya Railways Corporation (KRC) released on Wednesday. The near-doubling of the number of passengers traveling between the capital Nairobi and the coastal city of Mombasa portends better prospects for Kenya’s tourism sector, which is currently being driven by domestic travelers. KRC on Oct. 1 increased the number of express trains to and from Nairobi and Mombasa to cater for the rising demand for the service. Revenue from the passenger service, similarly, rose to 39.5 million shillings (about 365,740 U.S. dollars) during the month, up from 211,111 dollars in July. Export cargo during the month surged to 355,163 metric tonnes, up from 316,189 in July, according to KRC, an indication of rise in overseas shipments. However, import cargo fell slightly in August to stand at 2.18 million metric tonnes, down from 2.46 million metric tonnes, the KRC data shows. Read the original article

Kenya mulls mobile app to collect import duties to boost international trade

Kenya plans to develop a mobile phone application to collect import and export duties in order to boost international trade, the revenue agency has announced. Caxton Masudi, deputy commissioner, Kenya Revenue Authority (KRA), told journalists in Nairobi that the phone-based system will enable cross-border traders to track customs clearance procedures in real-time. “We hope to release the mobile-based application by March next year so as to boost Kenya’s international trade environment,” Masudi said during the launch of the annual taxpayer’s month. The revenue collector convened the month-long event to sensitize the public on the importance of paying taxes. Masudi added that the mobile application will be integrated into the mobile money platforms as well as the banking system in order to permit traders to pay for import and export tariffs digitally. Masudi noted that through offering full electronic service for custom procedures, Kenya is expected to generate more revenues by enhancing compliance. He noted that the system will reduce compliance costs for importers and exporters by reducing intermediaries. The revenue agency already has a web-based system for collection of taxes but its use is limited to those with access to computers. “With the mobile app, we hope to leverage on the widespread ownership of phones to reach all potential taxpayers,” he added. Read the original article

East Africa: EU – We’re for Fully-Fledged EAC Custom Union

THE East African Community (EAC) and the European Union (EU) are partnering to realize a fully-fledged EAC Custom Union as they launch a regional economic integration programme. The EU Ambassador to Tanzania and the EAC, Mr Manfredo Fanti and the Secretary General of the EAC, Ambassador Libérat Mfumukeko launched a new Euro 16,400,000 joint programme that will strengthen regional economic integration, through advancing implementation of the Customs Union and Common Market Protocols. The Common Objectives in Regional Economic Integration (CORE) programme will be instrumental in moving towards a fully-fledged Customs Union, by supporting more robust Information Communication and Technology (ICT) based on data exchange protocols for the clearing of goods. The EAC Customs Union was established under the EAC Treaty. The EAC Customs Union Protocol was signed on March 2nd 2004 and became operational on 1st January 2005 with the passing of the EAC Customs Management Act. The overall objective of the Customs Union is the formation of a single customs territory. The aim of creating one single customs territory is to enable Partner States to enjoy economies of scale, with a view to supporting the process of economic development. A needed critical change is to upgrade IT and leverage it to implement the SCT, particularly as concerns three functions: exchange of data between Partner States and with the EAC Secretariat for customs operational purposes, extraction of data from national customs systems for a systematic monitoring, and support functions with a regional component in risk management and valuation. A well-developed...

Kenya’s exports to EAC surpass pre-COVID-19 period

NAIROBI, Oct. 9 (Xinhua) -- Kenya's exports to countries in East African Community (EAC) have surpassed the pre-COVID-19 period, with the pandemic seemingly catalyzing trade. The exports to Uganda, Tanzania and Rwanda recovered from May, sustaining an upward trajectory to August, new economic data from government statistics agency released on Thursday shows. To Uganda, Kenya's exports rose from 3.6 billion shillings (about 33.5 million U.S. dollars) in May to 59.3 million in August, according to the Kenya National Bureau of Statistics (KNBS). In June, the exports stood at 40.3 million dollars and in July, 52.4 million dollars. The August exports are the highest since January. Exports to Tanzania, similarly, rose from 17 million dollars in May to 23 million dollars in August while to Rwanda, an East African nation exported goods worth 11.8 million dollars in May, surging to 23.3 million dollars in August, says the KNBS. "Domestic exports by broad economic category indicate that food and beverages were the main export category in August accounting for 43.23 percent of exports, while non-food industrial supplies accounted for 26.62 percent of the total exports," says KNBS. Kenya's exports to outside the region in particular to Europe, the U.S. and other parts of Africa, however, remained subdued during the period due to COVID-19 restrictions. The World Bank, in its October report dubbed "Africa Pulse: Charting the road to recovery" notes that trade in the EAC has recovered as the pandemic is managed. "Kenya's exports to Uganda and Rwanda already surpassed their pre-COVID-19...

Private sector goes beyond call of duty during the Covid-19 pandemic

1. Introduction Kenya Private Sector Alliance (KEPSA) is a limited liability membership organisation registered in 2003 as the apex body of private sector in Kenya. KEPSA brings together the entire business community from all sectors of the economy under one umbrella, to engage and influence public policy in a single voice to ensure year on year improvement in the overall business environment. With current over 500,000 direct and indirect members organised through Business Associations, corporates, multinationals, SMEs and start-ups, KEPSA is a key player in championing the interests of the Kenyan business community in trade, investment and industrial relations. 2. Public Private Partnership (PPD) during the COVID-19 pandemic Before the first case of Covid-19 was reported in Kenya in March 2020, businesses had begun suffering supply chain disruptions due to linkages with major global markets in Europe, China, and other Asian countries that had imposed travel restrictions to contain spread of the virus. KEPSA swung into action and initiated a survey to determine the impact of the pandemic. The survey inspired the constitution of a Covid-19 Business Response Team, comprising key sector leaders, to craft an economic management framework. The framework’s overriding focus was to protect small and medium-sized enterprises (SMEs), to safeguard livelihoods, prioritising health and safety of employees, communities, and healthcare workers, while ensuring supply chain continuity. The framework also sought to mobilise private sector resources, maintain high ethical standards and avoid moral hazards such as price spikes, and production or distribution of low-quality products. It also involved...

Kenya urged to ease truck movement at Tanzania border

In Summary Currently, ordinary citizens entering into Kenya from Tanzania are allowed to proceed once they produce a Covid-19 certificate. Truck drivers however are subjected to both production of the certificate from Tanzania and also another testing at the border point and allowed in only after the results are out. The East African Business Council (EABC) is seeking equal treatment of all those entering Kenya from Tanzania, irrespective of whether they are truck drivers or ordinary citizens. Currently, ordinary citizens from Tanzania are allowed to proceed once they produce a Covid-19 certificate. Truck drivers are however subjected however have to produce the certificate from Tanzania and still undergo another testing at the border point and are only allowed in after the results are out, EABC complained yesterday. The process according to Tanzania immigration officials and truck drivers takes more than a week delaying delivery of goods. EABC chief executive Peter Mathuki has also called for the strengthening of public-private partnerships between Kenya and Tanzania to boost bilateral trade. He was speaking during a mission led by Kenya's East African Community and Regional Development Principal Secretary Kevit Desai, to the Namanga border. The team sought to establish the capacity of aflatoxin surveillance while also witnessing the testing and issuance of Covid-19 certificates. Mathuki urged EAC governments to fast track the economic stimulus packages to support businesses. Covid-19 is estimated to cost East Africa partner states between $37 billion (about Sh4 trillion )to $79 billion (Sh 8.56 trillion) in output losses. In...

Fighting With 1’s and 0’s: How Distributed Ledger Technology Could Disrupt the $500B Counterfeit Industry

Look around your room. Chances are that everything inside has been in a container, on a plane, or inside a truck at some point. The miracle of international trade is a complex beast, a series of arteries feeding goods to each corner of the globe. And for the average consumer, we know almost nothing about it. It’s our lack of knowledge that’s given rise to an exploding market for counterfeit goods. According to the Organization for Economic Co-operation and Development (OECD) and the EU Intellectual Property Office, counterfeit and pirated goods make up 3.3% of all global trade — over half a trillion dollars annually. It’s here, in dealing with inauthentic goods, that we run into a bit of a blindspot. We know that we bought a jacket. We know where we purchased it (Amazon), how it got to us (DHL), and its country of origin (China). But it’s what we don’t know that’s far more interesting. Have you ever given thought to where the buttons originated? What about the dyes? The thread? Consider the number of miles, collectively, each material traveled, the number of borders crossed before a manufacturing facility turned it into a jacket, and shipped it to your door. The global supply chain is an impossible tangle of logistical hurdles somehow made possible. With complexity comes opportunity, and unscrupulous actors are taking these opportunities to sneak illicit goods into a legitimate supply. What Can We Do About It? In such a complex network, you’d assume paper would...

COVID19 SOPs rides on driver’s electronic certificate app to reach regional target

Over 25,000 truck drivers have so far registered in the RECDTS system since the exercise was launched two weeks ago. lans are underway to embed the Standard Operating Procedures (SOPs) in tackling Covid19 pandemic campaigns to the East Africa Community Regional Electronic Cargo and Driver’s Tracking System (RECDTS) app as the implementing team seek to reach a regional audience. RWANDAIR The Federation of East African Freight Forwarders Associations (FEAFFA) recently started a publicity campaign to promote the use of the SOPs, which will guide the industry in coping with Covid19 as the logistics industry seeks to spring back in a ‘ new normal’ environment. Last week, FEAFFA conducted a training for the South Sudan stakeholders mainly from Nimule-Elegu border. The meeting was also attended by the representatives from Trademark East Africa (TMA), which is supporting the implementation of the project in the region. “We plan to embed COVID19 SOP materials on the RECDTS app. The SOP messages will be tailored to create awareness among the drivers through the app,” FEAFFA president Mr. Fred Seka said, adding that there are plans to work with health officials and other relevant officers at all other border entry-exit points to sensitize the industry on the new SOPs. Another engagement meeting especially with system developers is scheduled in a week’s time before the materials are finally embedded on the app, added Seka. Over 25,000 truck drivers have so far registered in the RECDTS system since the exercise was launched two weeks ago. An average of...

KEBS ready to support business recovery as economy reopens

Summary KEBS has reviewed its product certification process to allow for online applications and remote assessment of production processes to allow for faster turnaround time in issuance of product permits. KEBS is also encouraging micro, small and medium enterprises (MSMEs) to get the Standardization Mark certification for their products to access regional markets under the mutual recognition of quality marks in accordance to common market protocol. Kenya Bureau of Standards’ (KEBS) business continuity plan has seen it ride the Covid-19 storm that precipitated a global decline in economic activity. With President Uhuru Kenyatta having reopened the economy, the standards’ watchdog is prepared to handle more business in support of manufacturers and traders. KEBS Managing Director Bernard Njiraini says the organisation has been able to conduct its operations even at the height of the Covid-19 pandemic. The standards body has been holding online ISO Zoom meetings to develop standards for Covid-19 products such as hand sanitizers, personal protective equipment (PPEs) and masks. These standards are available to the public free of charge as KEBS’ contribution to the fight against the pandemic. KEBS has certified over 130 firms for the production of face masks; over 540 firms for instant hand sanitizers; two firms for hospital beds; more than 80 firms for other PPEs such as coveralls and gloves; and two firms for critical care ventilators. The product certification programme is a continuous activity at the agency with the aim of ensuring consumer safety. KEBS also reviewed its product certification process to allow...

Rwanda’s Trade ministry endorses CS Amina for WTO job

In Summary The Geneva-based body is seeking a replacement for Brazil’s Roberto Azevedo who stepped down a year early at the end of August at a critical juncture WTO. Other finalists include Ngozi Okonjo-Iweala of Nigeria, Yoo Myung-hee of South Korea, Mohammad Maziad Al-Tuwaijri of Saudi Arabia and Liam Fox of the UK. Rwanda's Ministry of Trade and Industry has endorsed Sports CS Amina Mohamed as she vies for the postion of WTO DG position. In a statement released on Friday, Vincent Biruta stated that as Chiar of the EAC Sectoral Council on Trade, Industry, Finance and Investement (SCTIFI), he is pleased to notify the public of the unanimous support and endorsement offered by the SCTIFI to the candidacy of Amina Mohamed for the position of the WTO Director General. "The EAC partner states, through their Ministers of Trade, offered their support and assurance that they would stand by Kenya's candidate," the statement read. Mohamed is among five candidates who will progress to the next stage of interviews for the World Trade Organization's top job. She was nominated on July 7 by the Kenyan government. Other finalists include Ngozi Okonjo-Iweala of Nigeria, Yoo Myung-hee of South Korea, Mohammad Maziad Al-Tuwaijri of Saudi Arabia and Liam Fox of the UK. The Geneva-based body is seeking a replacement for Brazil’s Roberto Azevedo who stepped down a year early at the end of August at a critical juncture WTO. His successor will need to steer reforms and negotiations in the face of rising...