The process to upgrade the system, dubbed Trade Facilitation Platform (TFP), started in December last year with gap analysis. KenTrade has unveiled a schedule to upgrade TradeNet System to enhance its users’ experience and avoid the system becoming technologically obsolete. This was after the stakeholders were invited early this year to give their inputs in a gap analysis process that the KenTrade had initiated. RWANDAIR In liaison with KenTrade internal team, the system developers are currently deploying the developed system solution to the production environment in readiness for the next step which is User Acceptance Testing, Mr Amos Wangora said recently. This is scheduled to commence by mid-October and will run until March 2021. The new system is scheduled to Go-Live with Phase 1- Piloting with Selected Users for April 5, 2021. “It will take approximately 18 months to finalize on the Upgrade but I want to assure you that the process will have minimum interference with the normal operations of the System,” KenTrade CEO Amos Wangora assured the stakeholders The upgrade, which according to the agency is long overdue, will address the challenges of delays in document processing, lack of a 2-factor user authentication mechanism and address the problem of the limited document security features. Other challenges the system has experienced in the past and which the upgraded system seeks to cure are limited visibility of information to users due to lack of dashboards and few standard reports and cumbersome user registration process delaying registration process. The upgraded system...

Summary New data from the Central Bank of Kenya (CBK) show the gap between imports and exports dropped by 18.7 percent to Sh629.75 billion from Sh774.75 billion recorded in the same period last year. In the period, export receipts improved by five percent to Sh423.34 billion compared to Sh403.21 billion last year. On the other hand, imports were valued Sh1.05 trillion, a 10.6 percent drop from last year. Kenya’s trade deficit has fallen in the eight months to August, owing to a lower import bill amid continued recovery of exports as global trade reopens. New data from the Central Bank of Kenya (CBK) show the gap between imports and exports dropped by 18.7 percent to Sh629.75 billion from Sh774.75 billion recorded in the same period last year. In the period, export receipts improved by five percent to Sh423.34 billion compared to Sh403.21 billion last year. On the other hand, imports were valued Sh1.05 trillion, a 10.6 percent drop from last year. Exports in August were valued Sh54.16 billion up from Sh52 billion in July, while imports dropped slightly to Sh137.78 billion from Sh138.76 billion. “Exports have rebounded quite well, particularly horticulture after the decline in April. This reflects normalisation of demand in international destination countries and adequate cargo space,” said CBK governor Patrick Njoroge last week. The flower industry was particularly hit hard by the pandemic outbreak which saw cancellation of flights and lower demand experienced in the three months to May. This saw the growers throw away most cut...

The African Union has amplified action to tackle non-tariff barriers and increase small businesses’ use of the tradebarriers.africa tool through its new online platform The African continent is about to become the world’s largest free trade area. If not addressed, non-tariff barriers (NTBs) may slow down this effort. Although the negative impact of NTBs on intra-regional trade is recognized, so far there has been limited success in addressing them. “The success of the AfCFTA depends in part on how well governments can track and remove non-tariff barriers,” said Ambassador Albert Muchanga the African Union Commissioner for Trade and Industry. A new campaign to spotlight and remove non-tariff barriers (NTBs) in intra-continental trade launches this week. The #TradeEasier campaign aims to promote the uptake and use of the African Union’s tradebarriers.africa, a non-tariff barriers reporting mechanism tool. The tool, developed by the African Union in partnership with UNCTAD, supports efforts to make continental trade easier and less costly by helping African businesses report such barriers and supporting their elimination with the help of governments. NTBs slow down the movement of goods and costs importers and exporters billions of dollars annually. They also stand in the way of the success of the African Continental Free Trade Area (AfCFTA). “If we want the AfCFTA to thrive, we have to ensure operational barriers are dropped and businesses and traders, especially small ones; don’t suffer from undue limitations placed on them as they try do the basic thing that makes economies work – trade.” Every...

Slow Covid-19 testing result in long queues such as this on Bungoma-Malaba highway, and costly delays. FILE PHOTO | NMG As the East African economies re-open after many months of hiding from coronavirus, Covid-19 tests have become the latest non-tariff barrier to regional trade. The EastAfrican reported that Rwandan cross-border transporters are losing money as the impasse over Covid-19 testing of drivers continues to hold up the movement of goods from the port of Dar es Salaam to Kigali. Rwanda too does not accept Tanzanian Covid-19 certificates presented by Tanzanian truck drivers, preferring to do its own tests. Uganda and Kenya are holding their noses, and looking away pragmatically. They accept anyone’s certificates. But even with the system “working”, it is still very slow compared to the pro-pandemic times — which themselves were actually quite shambolic. These Covid-19 penalties, say economists, are now the biggest source of the increase in prices of goods and services in the region. With projections of vaccines getting to the region at the end of 2021, we are in for some bleak times unless enlightenment descends upon governments soon. There are ways out if there are people bold enough in East African executive mansions to seize on them. Beyond the health concerns, there is some narrow nationalism, and a sense that competitive advantages might somehow be extracted through this Covid-19 tests politics. But if that can be overcome, technology offers a path to speed everything up. First, to manage the politics and save face, let...

The African Union has amplified action to tackle non-tariff barriers and increase small businesses’ use of the tradebarriers.africa tool through its new online platform The African continent is about to become the world’s largest free trade area. If not addressed, non-tariff barriers (NTBs) may slow down this effort. Although the negative impact of NTBs on intra-regional trade is recognized, so far there has been limited success in addressing them. “The success of the AfCFTA depends in part on how well governments can track and remove non-tariff barriers,” said Ambassador Albert Muchanga the African Union Commissioner for Trade and Industry. A new campaign to spotlight and remove non-tariff barriers (NTBs) in intra-continental trade launches this week. The #TradeEasier campaign aims to promote the uptake and use of the African Union’s tradebarriers.africa, a non-tariff barriers reporting mechanism tool. The tool, developed by the African Union in partnership with UNCTAD, supports efforts to make continental trade easier and less costly by helping African businesses report such barriers and supporting their elimination with the help of governments. NTBs slow down the movement of goods and costs importers and exporters billions of dollars annually. They also stand in the way of the success of the African Continental Free Trade Area (AfCFTA). “If we want the AfCFTA to thrive, we have to ensure operational barriers are dropped and businesses and traders, especially small ones; don’t suffer from undue limitations placed on them as they try do the basic thing that makes economies work – trade.” Trade...

Nairobi — Kenya's volume of trade rose from Sh169.65 billion in June 2020 to Sh190.76 billion in July 2020. This is according to a study conducted by the Kenya National Bureau of Statistics which also reveals that the value of total exports increased from Sh48.05 billion in June 2020 to Sh52.00 billion in July 2020. Meanwhile, the value of imports increased from Sh121.60 billion in June 2020 to Sh138.76 billion in July 2020. Domestic exports by Broad Economic Category (BEC) indicated that food and beverages were the main export category in July 2020 accounting for 46.06 percent of exports, while non-food industrial supplies accounted for 22.29 percent of the total exports. The quantity of coffee exported decreased from 5,414.08 MT in June 2020 to 3,546.25 MT in July 2020 and its value dropped from Sh2,956.33 million to Sh1,799.26 million over the same period. The quantity of tea exported increased from 46,399.01 MT in June 2020 to 46,850.57 MT in July 2020. However, the value of exported tea dropped from Sh10,293.00 million to Sh10,013.83 million over the same period. Imports by BEC indicate that non-food industrial supplies were the main import category in July 2020 with a share of 39.35 percent. Machinery & other capital equipment; Fuel and lubricants; and transport equipment constituted 19.26, 12.32, and 8.24, percent of the total value of imports, respectively. Foods and beverages accounted for 9.77 percent of the total imports in July 2020. Read the original article

Landlocked countries are net importers and dependent on neighbours to access the sea he rapidly increasing population and a growing consumer class across Africa are creating a big demand for imported goods. This means that countries that act as the gateways to the continent improve cargo transport to tap into this evolving market. Requirements will need improvements in containerized cargo which will allow efficiency in supply chains and reduced import costs. There are 16 landlocked countries in Africa hosting 30 per cent of the continent’s 1.2 billion cargo transportation. Read: African countries urged to approach infrastructural projects jointly Interestingly, all these landlocked countries are net importers making them dependent on their neighbours to access the sea. Kenya is among the countries fronting an ocean, the Indian Ocean, making it a transit country for Uganda, South Sudan, Rwanda, Burundi, Somalia, northern Tanzania, and the eastern parts of the Democratic Republic of Congo (DRC). To ensure that the Mombasa remains suitable for improved service delivery, the government of Kenya dispatched an inter-ministerial team from the National Treasury, Interior, Transport and Trade ministries to improve efficiency at the port last year. The team formed in September 2019 was to look into aspects of trade facilitation including work permits issuance, security and the relationship, and cooperation between the inter-agencies working at the port. Kenya’s Finance Cabinet Secretary, Ukur Yatani, who spoke at the time, said that Kenya Revenue Authority (KRA) staff would also have set targets in a bid to ensure that the port...

These include expansion of access roads such as at Gate 18, used by trucks, which is being expanded to three lanes for both incoming and outgoing traffic. Phase Two of the second container terminal (CT2), which is berth number 22, will be completed by August 2021 and will have the capacity to handle about 450,000 TEUs. According to Managing Director Kenya Ports Authority Eng Rashid Salim, the port has invested Ksh 274 million on new 30 terminal tractors in an effort to boost cargo handling capacity at the Port of Mombasa and the Inland Container Depot. The 30 tractors will boost existing fleet of 102 and enhance the loading of cargo on to the Standard gauge railway system. The new machines are part of KPA’s Equipment Replacement Program that has been running for several years now. Container traffic at the port went down but we are getting back as we continue. Also Read  Kenya unveils postage stamp to honour Mahatma Gandhi ” We are still building the Lamu port. The 3 berths at Lamu port are 80% complete. The first ship is hopefully expected by the end this year at the port. ” Said Salim. Also Read  We'll assist you to do business in Kenya, Uhuru assures French investors Kipevu Oil Terminal The Kipevu Oil Terminal – KOT is one of Kenya´s Vision 2030 flagship projects and an enabler for the Big Four transformation Agenda. The project which is fully financed by Kenya Ports Authority at a cost of Kshs.40 billion, will expand our...

SUMMARY Kenya, a signatory to Africa’s Free Trade Area agreement now has a regional platform that facilitates faster clearance of goods at border points. Other signatories are Burundi, Djibouti, DR Congo, Ethiopia, Madagascar, Malawi, Kenya, Rwanda, South Sudan, Sudan, Tanzania, Uganda and Zimbabwe. RCTG-Carnet is an international customs and export-import system used to clear customs in participating member states without paying duties and import taxes on merchandise that will be re-exported within 12 months. Kenya is among 13 African countries that have entered into a digital deal to ease movement of goods across the continent. The countries have jointly activated the Regional Customs Transit Guarantee Scheme (RCTG-Carnet) that allows free movement of goods among signatories to the platform. Kenya, a signatory to Africa’s Free Trade Area agreement now has a regional platform that facilitates faster clearance of goods at border points. Other signatories are Burundi, Djibouti, DR Congo, Ethiopia, Madagascar, Malawi, Kenya, Rwanda, South Sudan, Sudan, Tanzania, Uganda and Zimbabwe. RCTG-Carnet is an international customs and export-import system used to clear customs in participating member states without paying duties and import taxes on merchandise that will be re-exported within 12 months. Clearing and forwarding agents will be integrated into the digital system through an app that facilitates paperless processes ending the tedious procedures that take days before goods on transit are cleared at border points. The Common Market for Eastern and Southern Africa (Comesa) Secretary General Chileshe Kapwepwe who spoke during the RCTG launch said the platform provides access to...

SUMMARY The depot doubled the number of cargo it handled last year compared to previous years. According to Kenya Ports Authority (KPA) pre-Covid-19 performance report, in 2019, a total of 418,830 twenty foot equivalent units (TEUs) were handled at the NICD up from 257,972 TEUs in 2018. Consequently, truckers recorded very low business as they only handled less than 100,000 TEUs from the port to Nairobi and other hinterland regions, forcing them to protest the compulsory haulage of cargo by the SGR. Nairobi Inland Container Depot traffic last year benefited immensely from State diretcive to haul cargo from the Port of Mombasa to Nairobi using Standard Gauge Railway (SGR). The depot doubled the number of cargo it handled last year compared to previous years. According to Kenya Ports Authority (KPA) pre-Covid-19 performance report, in 2019, a total of 418,830 twenty foot equivalent units (TEUs) were handled at the NICD up from 257,972 TEUs in 2018. Consequently, truckers recorded very low business as they only handled less than 100,000 TEUs from the port to Nairobi and other hinterland regions, forcing them to protest the compulsory haulage of cargo by the SGR. In June last year, KPA started implementing 100 percent ex-hook railing where cargo was loaded direct from ship to train, enabling the SGR to carry more than 1000 containers in two days. The report indicates that the country continues to experience unbalanced trade with exports recording very low cargo tonnage. The depot registered a total of 262,895 TEUs of imports...