The Port of Mombasa is poised to play a pivotal role in the development of cruise tourism along the Eastern rim of the Indian Ocean once a Memorandum of Understanding that will bring together stakeholders in the region is signed. Speaking during a grand reception at the Port of Mombasa during the arrival of iconic cruise ship Ms Marco Polo yesterday, Inchcape Shipping Services Vice President Grand Homes said that preparatory meetings between Vanilla Islands, an affiliation of island nations, Inchcape Shipping Services and Kenya that will lead to cruise tourism collaboration will be signed.The Vanilla island nations include Seychelles, Madagascar, Mauritius, Comoros, Re-Union , Mayotte and the Maldives."Mombasa Port is a modern facility with all the infrastructures in place. You have a wonderful cruise terminal and well located in an area with diverse tourist attractions. This makes it ideal for cruise landing,'' Homes said.MS Marco Polo arrived for a two-day Port stopover en-route from Zanzibar with 575 passengers and 346 crew.The ship, according to maritime historian, Mr Crossbie Smith from the United Kingdom is on around Africa cruise having started its journey from Bristol in UM on January 6th.'' We are documenting the ships' journey that has so far called at Ports in Portugal, Casablanca in Morocco, Cape Verse islands, Walvis Bay in Namibia, Port Elizabeth, East London, Durban, Mayotte and Zanzibar,'' Smith said. Passengers disembarking headed for city tours while others boarded safari vehicles to Tsavo East National Park to view wildlife.After Mombasa, the ship which sets sail...

Trade Mark East Africa wants Busia Kenya and Uganda to get a higher percentage of improved customs revenue at the border points. TMA chief technical officer Allen Asiimwe said integrated border management has improved systems at Busia and Malaba. “Through transparency, a lot of increased customs revenue has been realised. I hope some of that money comes back to Busia,” she said. Kenya and Uganda revenue officers agree that customs revenue has recorded tremendous increase due to improved border management at the Busia One Stop Border Post. Despite the increase in revenue, KRA cited some problems including the fact that the Kisumu-Busia road leading to the OSBP is too narrow and in a poor state. Other problems are insufficient facilities like scanners, screening machines and an ambulance and obstruction of traffic to and from the OSBP caused by buses /matatus picking and dropping passengers. Busia Governor Sospeter Ojaamong in February cited lack of terms of engagement as the main reason border counties were losing resources. The Governor said failure by the national government to execute its mandate has put leaders of such counties on a coalition course with their residents. Source: The Star

President Uhuru Kenyatta has had progressive trade negotiations with leaders of the United Kingdom and the United States, two of the largest economies in the world. His participation in the UK-Africa Investment Summit in January and subsequent meeting with US President Donald Trump has laid the foundations for further private sector investments in Kenya. This is taking place alongside discussions regarding the formation of a new US-Kenya trade deal.These efforts continue the government’s approach to trade that has defined Uhuru’s presidency, with the aim of improving the living standards of the country’s citizens. It also has a bigger picture of increasing Kenya’s profile on the international economic stage.During the 2017 Jamhuri Day celebrations, Uhuru unveiled his plan for Kenya’s development under the so-called Big Four Agenda – enhancing manufacturing, promoting food security, introducing universal health coverage and building affordable housing. By committing to achieve these ambitious milestones, however, the government set itself up for a bumpy ride. The transformation of the Kenya into an industrialising middle-income economy has faced a host of challenges. Despite numerous bilateral as well as regional trade agreements in place, such as the East African Community common market, the volume of exchanged goods and services has barely increased.Business conditionsFurthermore, Kenya’s trade balance remains negative, meaning that it imports more from other countries than it exports. This means that more money is leaving the country than coming in. As the World Trade Organisation observed in the past, this was largely the result of the poor quality of...

In Summary • Kenya surrendered its customs space to the bloc in 2005 when it signed its customs union protocol. • The rulebook compels member states to negotiate all trade pacts jointly. Presidents Uhuru Kenyatta and John Magufuli (Tanzania) in Uganda where they and other leaders attended the EAC Summit on February 23, 2018. STILL UNITED? Presidents Uhuru Kenyatta and John Magufuli (Tanzania) in Uganda where they and other leaders attended the EAC Summit on February 23, 2018. Image: PSCU President Uhuru Kenyatta met US President Donald Trump in Washington on Thursday as the two states started negotiations on a free-trade agreement. Notably, this will be US’s first such deal with a sub-Saharan nation, Bloomberg News noted, and it precedes the expiry of the African Growth Opportunity Act in 2025. What does this expected trade deal mean for Kenya and the EAC? According to US statistics, two-way trade between Kenya and the US was about Sh100 billion in 2018, with a Sh2.8 billion surplus in Kenya’s favour. When the two leaders met in Washington in August 2018, they resolved to improve tourism, trade relations and improve security. Noting the two countries have had close ties in security and defence, especially in the fight against terrorism, Uhuru said Kenya looks forward “to enhance our partnership in trade and investment". In response, Trump said Kenya and the US will continue to work together to grow their partnerships in trade, investments and security. This looks like a follow-up on the 2018 meeting. State...

by Eunniah Mbabazi TradeMark Africa (TMA) has partnered with the East African Tea Trade Association (EATTA) to digitize the weekly Mombasa tea auction. The partnership seeks to automate the trade through the formation of the Integrated Tea Trading System (ITTS). Additionally, the digitization (ITTS) seeks to fill gaps in the current procedures, which are done manually including membership and cataloging. The partnership has already received funding from the Danish International Development Agency (DANIDA). The disadvantages of the manual system include high transaction costs for traders, delays in payments and exportation, as well as limited timeline for trading. Furthermore, buyers have to make their payments manually, and then the tea has to be exported or be transported back to Nairobi for value addition, which takes a lot of time. Additionally, the manual procedure involves a couple of middle-men, ranging from producers, warehouses, brokers, buyers, and middlemen. In the long run, the trickle down effect is that the farmers have little say in the prices of their tea. Digitization, therefore, will enable farmers to use their mobile phones to trace the movement of their tea across factories and shipping companies. They will also be able to analyse the market trends affecting tea trade in the world. We are funding EATTA with $2 million to create a robust platform that will deliver a digital information flow of buying and selling tea. We have been working with EATTA to re-engineer all the services that are manual, and paper based, and move them in to the...

By Business Reporter Kenya is seeking more market access to the EU market. With this, Kenyan exporters will have to diversify export products and increase value addition in order to ease the trade imbalance between Kenya and Germany, according to the Deputy Head of Mission in Berlin Amb. Esther Mungai. Speaking at the Kenyan Embassy in Berlin ahead of the official opening of this year’s edition of Fruit Logistica Trade Fair, she lauded government to government collaborations as well as private partnerships between Germany and Kenya that have increased market access for Kenyan goods and services to the EU market. Kenya has a trade deficit of KSh87.8 billion to the European Union market as of 2018, with Kenya’s exports to EU standing at KSh131.1 billion while her imports were at KSh218.9 billion, hence creating the deficit. Germany is one of the key markets where Kenya’s export products are preferred, which are largely vegetables, tea, coffee, fruits and nuts, tobacco and canned fruit juices. On the other hand, over 50 Germany firms are in Kenya. Fruit Logistica, an international trade fair for fruits and vegetable global marketing has more than 3100 companies from the entire value chain of the green range exhibiting. This will include both global players as well as small and medium-sized suppliers from all over the world. Kenya will be represented by 40 companies who will be seeking more market opportunities, make global business networks as well as exchange latest trends in the industry and value addition opportunities to expand...

By PSCU President Uhuru Kenyatta has assured that a new bilateral trade deal between Kenya and the US won't undermine the African Continental Free Trade Agreement (AfCFTA). He spoke shortly after a meeting with the United States President Donald Trump at the White House during which the two leaders agreed to commence trade talks. Uhuru made the assurance when he addressed more than 350 business leaders attending a US-Kenya Trade Forum in the US capital. At the White House meeting, Uhuru and Trump said a new deal would increase investment between Kenya and the US. SEE ALSO :After Uhuru decision on housing, state must listen to people more US Trade Representative Robert Lighthizer who spoke shortly after the meeting between Uhuru and Trump said America recognises Kenya as a leader in Africa and an important strategic partner. He said a new deal presents the two countries a rare opportunity to explore ways of deepening the Kenya-US economic and commercial ties. In line with the Bipartisan Congressional Trade Priorities and Accountability law of 2015, the Trade Representative will now notify Congress of the US government's intention to start trade negotiations with Kenya.     Currently, trade between Kenya and the US stands at about USD 1billion a year with over 70 per cent of Kenya's export into the expansive American market in 2018, worth USD 466 million, entering under AGOA. Uhuru told the Kenya-US forum that his administration is committed to developing and concluding the strongest trade and investment framework. SEE...

By GEORGE TUBEI  The Kenyan government has officially begun the process of constructing its part of the 460km Coastline Transnational Highway. The Coastline Transnational Highway project is a joint project between Kenya and Tanzania. Upon completion, it will stretch from Lunga Lunga-Mombasa-Mtwapa-Malindi on the Kenyan side to Bagamoyo-Tanga-Horohoro on the Tanzania side.   More than 20 years ago since it was conceived, the East African Coastal Corridor development project may finally see the light of day. The Kenyan government has officially begun the process of constructing its part of the 460km Coastline Transnational Highway. The Kenya National Highway Authority (KeNHA) has already hit the ground running and has published a Tender by the entity for the 13.5km Mombasa—Mtwapa (A7) section and the 40.4km Mtwapa—Kwa Kadzengo-Kilifi (A7) section. Bidders are expected to submit their documents by the 21st day of next month. Mombasa to Bagamoyo Highway (highway today) The Coastline Transnational Highway project is a joint project between Kenya and Tanzania. It stretches from Lunga Lunga-Mombasa-Mtwapa-Malindi on the Kenyan side to Bagamoyo-Tanga-Horohoro on the Tanzania side. It is projected to cost Sh75.1 billion ($751m) and it will be financed by the African Development Bank and the governments of Kenya and Tanzania at 70% and 30% respectively. Last Year, AfDB approved a $384.22m financing package for the project a few months after the European Union gave the government of Kenya a grant of US $33.41m. According to the KeNHA tender, the Mombasa—Mtwapa (A7) section entails the construction of a four-lane dual carriageway,...

By JACOB WALTER SUMMARY The Border Management Secretariat, a bilateral agency, said the OSBPs will enhance security, boost revenue collection and ease movement between the two countries. Kenya is set to build one-stop border points (OSBPs) along its border with Ethiopia in its latest effort to boost trade with the landlocked neighbour. The Border Management Secretariat, a bilateral agency, said the OSBPs will enhance security, boost revenue collection and ease movement between the two countries. “Putting two more OSBPs in Marsabit County will greatly boost trade facilitation and seal all the porous border points that encourage illicit trades,” said Mr Kennedy Nyaiyo, director of Border Management Secretariat. He spoke in Marsabit County on Wednesday when he led a multi-agency delegation to the office of Deputy Governor Solomon Gubo, for a courtesy call. Mr Nyaiyo said the team was currently assessing suitability of Forole and Illeret, the two sites proposed to host OSBPs in Marsabit County. Marsabit currently has only one OSBP in Moyale Town despite the fact that the Ethiopia-Kenyan border straddles over 830km of its territory. Other areas marked for OSBPs include Siftu in Wajir, Markamari, Rhamu in Mandera, Todunyang in Turkana. Mr Nyaiyo said the identified points will have heavy military and police presence to ensure observance of law and order in bandit-prone areas to safeguard livestock product markets. He called on the county’s trade department to begin monitoring the trade volumes and statistically gauge the economic growth as soon as the projects are complete. Marsabit County Commissioner...

In Summary •It is expected to boots trade after a slight drop on imports from the US in 2018, whose value dropped 7.2 per cent to Sh53.2 billion in 2018 , down from Sh57.4 billion a year earlier. •Kenya Airways cargo stands among the biggest beneficiaries having commenced direct flights between JKIA and JF Kennedy International Airport in 2018. Trade between Kenya and the US is set to benefit from a new aviation deal that grants direct cargo flights. The countries have revised their bilateral air services agreement, facilitating the expansion of air freight services. The new move strengthens the already existing passenger traffic rights that allows national carrier Kenya Airways direct flights between Nairobi and New York. The new deal, which revises the initial agreement signed in Washington on June 18, 2008, was signed by Transport CS James Macharia and US assistant Secretary of State for Economic and Business Affairs Manisha Singh. This was done on the sidelines of President Uhuru Kenyatta's visit to the US this week. “The revised bilateral air services agreement between Kenya and the USA will facilitate the expansion of air freight services, by allowing airlines from both countries to set up and operate air cargo hubs in either country,” CS Macharia wrote on Twitter. The rights in the amendment facilitate the movement of goods throughout the world by providing air carriers greater flexibility to meet their cargo and express delivery customers’ needs more efficiently, the US government notes. Specifically, the amendment allows U.S all-cargo...