WRITTEN BY:Betty Kiptum Introduction of the Regional Cargo Tracking System has helped boost tax collection from customs by 17 per cent. Kenya Revenue Authority Commissioner for Customs and Border Control Kevin Safari said the system has ensured 90 per cent of cargo is checked and has reduced cases of cargo diversion. The system offers real-time scanning and inspection as well as transport information. This information is then used to track cargo in efforts to reduce cases of diversion. Also Read Kenya represented at global conference on urbanization in UAE The taxman hosted the Secretary-General World Customs Organization Dr Kunio Mukuriya who said Kenya is central in the regions supply chain and that a reliable cargo system goes a long way in ensuring that the transport time is reduced. KRA Commissioner for Customs and Border Control Kevin Safari said the overall aim is to make custom border checks redundant and in addition to eliminating opportunities for cargo diversion that existed due to border changeover processes when each country uses separate cargo tracking systems. Also Read Kenya represented at global conference on urbanization in UAE The system has integrated cargo tracking platforms across Kenya, Rwanda and Uganda meaning that KRA can track the cargo before it enters the country and after it leaves. Also Read Kenya represented at global conference on urbanization in UAE Source : kbc.co.ke

In Summary The committee noted that there was a significant improvement of cargo transit time along the Northern Corridor following infrastructure initiatives undertaken in Kenya between 2013 and 2019. On infrastructure, the committee agreed to seek funds to improve roads especially in South Sudan, where less than one per cent of roads are in a good state according to the Northern Corridor Transit Transport Co-ordination Authority 2019 report. By ANTHONY KITIMO The 10-year-old Northern Corridor trade agreement will be updated by March to address emerging trade opportunities, meet current needs and boost regional trade. This was the main resolution of the 48th executive meeting of the Northern Corridor Transit and Transport Co-ordination Authority member states — meeting in Mombasa, Kenya recently. The member states are Kenya, Uganda, South Sudan, Democratic Republic of Congo, Rwanda and Burundi. “The revised draft of Agreement and protocols has been received and is awaiting a validation workshop in March this year before its submission to the Council of Ministers,” said executive secretary Omae Nyarandi. The revised trade agreement will include the use of Kenya’s Standard Gauge Railway, which was not there in 2007 when the agreements were being drawn up; joint funding of infrastructure such as roads, one-stop-border posts, motion weighbridges; and speed up implementation of the Customs Union Protocol by adopting a single window system for regional custom data transfer to end cross-border delays. Trade Mark East Africa has committed budgetary support of $393,000 for the recruitment of system developers to enhance the current...

By TONY WATIMA Kenya and the US are this week expected to kickstart negotiations on a free trade agreement. The US is an important trading partner and one of the most significant investors on the continent hence working towards securing a free trade pact is a big deal for Kenya since such partnerships are a means towards poverty alleviation, development and further integration into the world economy. But it would be premature for Kenya to pop the champagne bottle to celebrate a free trade deal with the US because such negotiations, especially reciprocal trade pacts like this one, take time to materialise. Though we should be hopeful that it will not take ten years since in five years’ time the African Growth and Opportunity Act (Agoa) deal - the current preferential trade agreement through which we access the US market - will be coming to an end and a second-generation trade pact has to be in place prior to that. It’s for this reason that the Kenya-US free trade agreement, if achieved, will be used as a model that can be replicated in other African countries.   Now, its my belief that the negotiations will start against the backdrop of the Agoa as the starting where Kenya mostly pitching about what has worked for her under Agoa and how can the limitations be addressed in the free trade agreement. The Agoa is a nonreciprocal preferential trade agreement that came into force in 2000 with the explicit goal of providing sub...

The installation of new scanning and verification points has made it easier and faster for the movement of goods on the highway. Kenya Revenue Authority (KRA) says this has reduced its cargo verification up from 10-50 percent and scanning of goods is at almost 90 percent, This is after installation of a new Integrated Scanner Command Centre (ISCC) by the taxman KRA’s Commissioner of Customs and Border Control Kevin Safari made the revelations when he hosted Secretary-General World Customs Organization (WCO) Dr. Kunio Mukuriya at the centre. ‘Since the inception of the new technology, we have greatly reduced the congestion and delays that were previously experienced at the collection points,” said Safari at the Times Towers, KRA’s headquarters. The technology has also helped to improve the security of the goods on transit as well as exposed and eliminated some dishonest KRA officials. From the central data centre, KRA can now monitor the movement of the goods electronically and avert any potential danger or risks to the cargos Dr. Mikuriya commended KRA for its state of the art technology. He said Kenya is key in the economic block for the eastern part of Africa. “Kenya is the centre of economic and business in East Africa, I applaud Kenya for joining the smart border trade, and by joining the fast-growing global technology that is embraced worldwide, Kenya’s progress in technology is good for business in the region,” said Dr Mikuriya. The visit comes hot on the heels of recently concluded the Middle...

On January 31, 2020, the United Kingdom (UK) left the European Union. We lost a member of our family. It was a sad moment for us, for European citizens – and, indeed, for many British citizens. Nevertheless, we have always respected the sovereign decision of 52 per cent of the British electorate, and we now look forward to starting a new chapter in our relations.  Emotions aside, February 1 turned out to be historic, but also undramatic. This is largely thanks to the Withdrawal Agreement that we negotiated with the UK, which enabled us to secure ‘an orderly Brexit’. One that – at least for now – minimises disruption for our citizens, businesses, public administrations – as well as for our international partners.Under this agreement, the EU and the UK agreed on a transition period, until the end of 2020 at least, during which the UK will continue to participate in the EU’s Customs Union and Single Market, and to apply EU law, even if it is no longer a Member State. During this period, the UK will also continue to abide by the international agreements of the EU, as we made clear in a note verbale to our international partners. So, with the transition period in place, there is a degree of continuity. This was not easy given the magnitude of the task. By leaving the Union, the UK automatically, mechanically, legally, leaves hundreds of international agreements concluded by or on behalf of the Union, to the benefit of its...

East Africa’s quest to improve service delivery at the ports of entry has gone a notch higher with Kenya joining Rwanda, Burundi and Tanzania in domesticating a version of the East African Customs Agents and Freight Forwarders Management Model Bill 2017. Under the proposed Kenya Customs Agents and Freight Forwarders Bill, all agents will have to demonstrate their understanding of the cargo clearance processes, valuations and classification. The drafting of the Bill started in 2014 and was completed in 2017. It is designed to bring order, efficiency, accountability and professionalism in the sector. So far, Rwanda, Kenya, Burundi and Tanzania have drafted national Bills; the Rwanda Freight Forwarders Association is getting the draft adopted as a Bill to be presented to parliament. Customs agents will also be required to be well versed in classification, rules of origin and management, of the changing regional regulatory regime, and of Kenya’s clearing systems, digital gadgets and portals. Once the Bill is adopted later this year, all clearing and forwarding agents and firms will be vetted afresh. “A person shall not engage in the practice as a Customs clearing and freight forwarder unless that person has been issued with a practicing licence and has complied with the requirements of this Act,” the Bill says. Anyone who contravenes the law will be liable to a fine not exceeding $10,000 for an individual or $20,000 for a legal person or imprisonment for a term not exceeding one year or to both. The proposed law is pushing...

Building Cities in Africa – FBW Group Development News UK and Africa businesses urged to “seize the moment” A leading East African architecture and engineering firm is urging businesses in the UK and Africa to “seize the moment” following a major summit looking to deliver more investment and jobs. FBW Group, which is helping deliver large-scale development projects across the region, has also welcomed UK International Development Secretary Alok Sharma’s pledge of new aid to help build green cities across Africa with quality infrastructure. Malawi Creator Centre, Medical Training building: The new UK Centre for Cities and Infrastructure that he has announced aims to “turbo-charge investment” in fast growing cities across the developing world. It will provide British expertise to African governments and city authorities to improve the way cities are planned, built and run, including making them more environmentally-friendly. The focus will be on improvements to infrastructure, including water and energy networks. Mr Sharma’s announcement came on the eve of the UK-Africa Investment Summit 2020 which took place in London earlier this month (January). In the post-Brexit world the British government is looking to increase exports and encourage UK companies to be more active globally – and specifically turn their attention to markets like Africa. The aim of the London summit was to create new lasting partnerships to deliver more investment, jobs and growth, benefiting both Africa and the UK. It brought together UK and African business representatives, African leaders, international institutions and young entrepreneurs. FBW has operations in...

Government has listed priority areas to energise the economy in financial year 2020/2021 against the backdrop of widening trade deficits and local revenue gaps. In its report on the Budget Framework Paper presented by the Committee on Budget, MPs warned of a growing trade deficit. The report blames the decline on trade wars with Kenya and the closure of Uganda’s border with Rwanda which has frustrated commercial activities. Tanzania, which has always shown cold shoulders to East African Community economic integration projects, has also been singled out. Victoria University “…[T]he trade surplus with EAC slowed down in the FY 2018/2019 compared to FY 2017/2018 mainly on account of existence of non-tariff barriers in some of the partner states – most especially in Tanzania,” partly reads the report. It continues: “the temporary closure of Uganda-Rwanda border and the decline in agricultural exports such as beans and maize to the region has also affected trade.” In figures, Uganda’s trade deficit has shot from $2.4 trillion to $3.7 trillion, an increase of $1.2 trillion (about Shs4.4 trillion). In recent months, Kenya has banned Uganda’s milk from its market and levied prohibitive taxes on poultry products from Uganda, a protectionist response to demands from local farmers to bar Ugandan products from their market. Rwanda, on the other hand, has maintained a closed border with Uganda, and an expected rise in global oil prices, noted the Committee, will worsen the economic situation, as government largely relies on petroleum imports to fuel the economy. To address...

Kenya is plotting to outdo the the rest of the African continent and become the only country in sub-Saharan Africa to have reached a new free trade deal with the United States. The country is expected to sign the new trade deal with Washington next week when President Uhuru Kenyatta will be visiting America on invitation of the US Congress to attend a prayer breakfast meeting. An official in the Ministry of Foreign Affairs who sought anonymity confirmed that Kenya will be entering into a new pact but did not give details. “We are working on the final deals of the trade agreement which will be signed during President Kenyatta’s visit in the US,” said the official, East African reported. Foreign Affairs CS Amb Raychelle Omamo. (https://twitter.com/ForeignOfficeKE) The US has hinted the new trade deal with Kenya, will be used as a model for other African countries when the current trade pact under Africa Growth and Opportunity Act (Agoa) ends in five years. If all goes well it is expected to boost trade ties with America. In 2018, Kenya’s exports of duty-free goods to the US under the Agoa grew by 25% marking one of the major leaps in nine years, data from Kenya National Bureau of Statistics shows. Last year in August Washington announced that it was pursuing a free trade deal with a sub-Saharan country that it did not, however, disclose. Representatives from various African nations gather at the opening session at the AGOA Forum during the US-Africa Leaders...

The African Union-led agreement is designed to establish the world’s biggest free-trade zone by area, encompassing a combined economy of $2.5-trillion A truck and trailer drives into a Beitbridge customs and immigration control point on the SA border with Zimbabwe. Picture: REUTERS Nyoni Nsukuzimbi drives his 40-tonne Freightliner for just more than half a day from Johannesburg to the Beitbridge border post with Zimbabwe. At the frontier town — little more than a petrol station and a KFC — he sits in a line for two to three days, in temperatures reaching 40°C, waiting for his documents to be processed. That’s only the start of a journey Nsukuzimbi makes maybe twice a month. Driving 885km farther north gets him to the Chirundu border post on the Zambian frontier. There, starting at a bridge across the Zambezi River, trucks snake back miles into the bush. “There’s no water, there’s no toilets, there are lions,” says the Zimbabwean. He leans out of the Freightliner’s cab over the hot asphalt, wearing a white T-shirt and a weary expression. “It’s terrible.” By the time he gets his load of tiny plastic beads — the kind used in many manufacturing processes — to a factory on the outskirts of Zambia’s capital, Lusaka, he’s been on the road for as many as 10 days to traverse just 1,600km. Nsukuzimbi’s trials are typical of truck drivers across Africa, where border bureaucracy, corrupt officials seeking bribes, and  myriad regulations that vary from country to country have stymied attempts...