Conference is being hosted jointly by Pakistan and Kenya and will also be attended by dignitaries from other African States. Conference will provide an important opportunity for Pakistani and African businesses to interface, identify the areas for enhanced engagement, and develop proposals for customized economic collaboration. During the visit, Foreign Minister Shah Mehmood Qureshi will hold meetings with the Kenyan leadership including Cabinet Secretaries for Foreign Affairs & International Trade, African Community and Northern Corridor Development. Source: IPPMEDIA

The United States and the Kenyan government are set to hold negotiations on a Free Trade Agreement (FTA) between the two countries in early February 2020. Reports from financial news outlet Bloombergindicated that the negotiations would be the first-ever between the US and Sub-saharan Africa, the only other country benefitting from the agreement in the continent being Morocco. Foreign Affairs PS Ambassador Macharia Kamau confirmed to Kenyans.co.ke on Wednesday, January 29, that the country was indeed hoping to begin negotiations with the US in the near future. "We are waiting for Cabinet approval for the negotiations begin. There is no agreement between Kenyans and the US as of yet. It is just to see whether we will start negotiation on the same," he stated. Ambassador Macharia Kamau (pictured) confirmed to Kenyans.co.ke on Wednesday, January 29, that plans were indeed in the offing to start negotiations on the Open Trade Agreement between Kenya and the US. A Free Trade Agreement (FTA) is defined as an agreement between two or more countries that outlines certain obligations with respect to trade in goods and services and provides protections for investors and intellectual property rights. FTAs not only reduce and eliminate tariffs but also help in addressing trade barriers that would otherwise impede the flow of goods and services; encourage investment and improve the rules affecting issues like e-commerce and government procurement. Macharia expressed optimism that if the negotiations go through as the Kenyan government anticipates, the country could benefit from the agreement in numerous ways. "We hope that it would...

Like in many other countries with a post-colonial history of struggling against dictatorship, the business environment in Kenya has not always been ideal. In addition corruption and government policies have often made the going tough for the private sector.These include openness to investment, whether that be through local firms or Foreign Direct Investments (FDI), public-private partnerships, or trust from international allies thinking of investing in Kenyan businesses.Though this has been a tough legacy to break, President Uhuru Kenyatta and his government have struggled to transform the business climate in Kenya in the last few years.In 2017 and 2018, Kenya attracted more FDI than at any other period in history. That was a direct result of competent and welcoming government policy.During his recent speech at the UK-Africa Investment Summit that took place in London, the president noted that “Kenya is one of the top 10 fastest growing economies on the continent and also one of the most pro-business nations in Africa.”Our business environment is now recognised as being among the top on the entire continent of Africa. As part of an effort to encourage foreign companies and investors to set up branches in Kenya, Uhuru committed to an audience of more than 20 African leaders as well as numerous other dignitaries that his administration will do everything possible to eliminate all roadblocks that are currently an obstacle to growth. Renewable energy But turning a profit and boosting the economy is not the only priority. It cannot come at the expense of the...

There has been much hype about a major Africa investment summit being hosted by the UK. Attended by Prime Minister Boris Johnson and an array of royals, a great deal of hopeful win-win-win rhetoric abounded linked to forging new partnerships for a post-Brexit future.At the summit, Ghana, it seems, is being given top treatment as a favoured destination, while Zimbabwe appears to have been snubbed despite being “open for business”.UK aid policy these days is focused on promoting UK trade interests abroad, with the government adopting a global business promotion approach for UK firms. The linking of aid and trade, of course, has a history in Britain.In 1994 the Pergau dam scandal – in which aid was used as a sweetener for an arms deal – led to the commitment to untie aid. It also led to the establishment of a separate development department and an Act of Parliament specifying how aid must be spent. This consensus on aid since the mid-1990s, however, is now under threat. Trade and investment can, of course, help reduce poverty, promote women’s empowerment and be good for children’s rights.But the opposite may be true too. There are many different business models – and so labour, environmental and rights regimes – with very different outcomes. We’ve been looking at some of these issues over the last few years across several projects.All were funded by the UK’s Department for International Development. The project compared three broad types of commercial agricultural investment: estates and plantations; medium-scale commercial farms;...

As the first UK-Africa Investment Summit came to end, African countries walked away with million dollar investments in renewable energy projects that are set to bring the African continent and the European Island even closer. Boris Johnson's government is set to invest over US $65.7m into renewable energy projects in Africa, as it works with selected African countries to develop sustainable energy sources. UK Prime minister Boris Johnson speaking during UK-Africa Investment Summit. (twitter/10DowningStreet) The approved projects include solar farms in Kenya, geothermal power stations in Ethiopia and clean energy storage in sub-Saharan Africa. “Our world-leading scientists and financial experts will work hand in hand with African nations to support their quest for energy security, powering new industries and jobs across the continent with a diverse mix of energy sources while promoting economic growth,” said UK’s Business and energy secretary Andrea Leadsom, construction review reported. The British Conservative politician added that close collaboration with African countries will be key as the UK prepares to host the UN climate talks (COP26) later this year. The African countries will receive funding and support as UK scientists and financial experts will work with their African counterparts to realise the continent’s significant renewable energy potential. The UK will further assist the countries with attracting investment for innovative renewable projects, such as wind and solar farms. Entrance to the Ethiopian Electric Power Corporation Aluto Langano Geothermal plant. The government announced the winners of the investment packages for the continent’s clean energy infrastructure at the African Investment...

Kenya is foregoing huge tax income from companies operating in the Export Processing Zones (EPZs), whose returns are not commensurate with the economy’s expectations and targets. This is as the firms’ key roles of creating employment and growing the economy dim. While the companies operating at various EPZs and their volume of export goods have been growing over time, their contribution to the economy has stagnated, according to the Tax Justice Network Africa (TJNA), a lobby against tax evasion.After analysing data from various State agencies, including the EPZ Authority, TJNA noted that the contribution of firms operating in EPZs to the country’s gross domestic product (GDP) dropped over time, accounting for 0.96 per cent of the GDP in 2016.This is in comparison to 1.04 per cent in 2012, which has since gone down to 0.87 per cent in 2018.The decline in contribution to the economy is despite an increase in production, with the companies jointly accounting for 10.9 per cent of all exports out of Kenya in 2016, a rise from 7.72 per cent in 2012.In 2018, the firms exported goods worth Sh72 billion, a bulk of them being clothing items, which accounted for Sh41 billion of the exports.“Performance of EPZs from 2012-2016 raises concern on the significance and productivity of the incentives granted to the sector. They were expected to catalyse investments,” noted TJNA. “The export contribution of the EPZs to the total exports and over the period between 2012 and 2016 increased marginally, while the contribution of EPZ...

Transit  goods to Uganda and Rwanda now takes an average of four to five days after Kenya Revenue Authority introduced real-time cargo tracking. This, according to KRA has cut transit time by more than 75 percent in return boosting trade at the Mombasa port. The Regional Electronic Cargo Tracking System(RECTS) integrates tracking platforms in Kenya, Uganda and Rwanda has reduced transit time between Mombasa and Kampala from an average 21 days in 2017. It now takes an average three days to move cargo from Mombasa to Busia and Malaba borders. Cargo destined for South Sudan reached Uganda's border point of Elegu in an average 3.7 days, with that heading to Burundi and DR Congo taking less than a week, compared to the previous two to three weeks. This has helped address cargo delays and theft which for decades affected importers and exporters, whom have previously been paying high insurance cover for their cargo. RECTS ensures trucks are fitted with GPRS enabled electronic seals that relay real time movement of units, content and driver's details. In case of a breach on the seal, real time information is relayed to the Centralized Monitoring Centre's with the exact location of the truck and a Rapid Response Unit is dispatched to secure the cargo. “We use risk management module to identify risky goods. These trucks are monitored all through to the final destination where a customs officer disarms the seal, "said Jeremiah Kosgei, head of the Centralized Monitoring Centre. He said when a truck...

The Kenya National Highway Authority (KeNHA) has started the process to construct part of the 460-kilometre East African Coastal Corridor development project. Tenders were advertised for the two phases of the 13.5km Mombasa—Mtwapa (A7) section, which entails the construction of a four-lane dual carriageway. The works include construction of a grade separated junction, service roads, storm water drains, major and minor drainage structures, access roads and social amenities along the road. The project has already received funds from the African Development Bank (AfDB) and a grant from the European Union. Last June, Gabriel Negatu, East Africa director general of AfDB said construction of the road would begin this year. “Both the Kenya and Tanzania governments have finalised all their requirements to pave way for the construction of the coastal highway,” Mr Negatu said. The Coastline Transnational Highway project, conceived more than two decades ago, covers Bagamoyo-Tanga-Horohoro on the Tanzania side and Lunga Lunga-Mombasa-Mtwapa-Malindi on the Kenyan side, and is expected to cost $751 million. According to an agreement signed last November, AfDB will finance 70 per cent of the highway and the governments of Kenya and Tanzania will cover 30 per cent. Last December, AfDB approved of the $384.22 million financing package for the road construction a few months after the EU gave a grant of $33.41 million or 7.7 per cent of the total project cost to the government of Kenya. The road is a priority item in AfDB’s Eastern Africa Regional Integration Strategy and the Country Strategy Papers...

The ongoing Kenya-Uganda trade dispute on milk tariffs could deal a blow to hopes of Common External Tariffs (CETs) and Non-Trade Barriers(NTBs). The differences between the two neighbours started in December when Kenya introduced a 16 per cent value-added tax (VAT) on milk imports from Uganda as part of measures cushion the local dairy sector. This was later followed by the seizure of Lato milk produced by Uganda's Pearl Dairy by Kenyan authorities. Uganda has threatened to retaliate. The country's minister for East Africa Community Affairs Julius Muganda told the New Vision newspaper that Uganda will retaliate by targeting a number of Kenyan goods, key among them packed juices, assorted household items and roofing materials in a similar protectionist move. This comes just ten days after Uganda's Ministry of Foreign Affair wrote a protest letter to Kenya, demanding immediate and unconditional release of 23 tonnes of Lato milk impounded starting late December. “Cease any operations specifically targeting Ugandan made milk exported to Kenya. Refrain from any actions against Uganda’s exports to Kenya be it milk or any other products that contravene the EAC customs union and common market protocol,'' the protest letter read. It further asked Kenya to take responsibility for any spoilage of products seized and losses suffered. Kenya, Uganda said should address any trade concerns within the EAC and bilateral frameworks instead of resorting to arbitrary means that could jeopardise trade relations. Kenyan officials did not respond calls or messages on the position taken by Uganda. The simmering hostility Kenya...

The UK this past week opened a new chapter in its relations with African countries at a summit to set the tone for the country’s trade and diplomatic ties with the continent after exiting the European Union. British Prime Minister Boris Johnson hosted leaders from 21 African countries in London, where 27 deals worth an estimated $8.5 billion (£6.5 billion) were signed at the UK-Africa Summit held on January 20. The summit came just months after Japan and Russia hosted African leaders in their respective capitals last year. “We want to build a new future as a global free trading nation, that’s what we are doing now and that’s what we will be embarking on, on 31st of January,” Mr Johnson told the gathering in London. “But I want to intensify and expand that trade in ways that go far beyond what we sell you or you sell us.” The tone of the meeting signalled a shift in Mr Johnson’s attitude towards Africa. Eight years ago, as mayor of London, he wrote a commentary in the Spectator Magazine suggesting that Africa would have been better off if the UK was still its colonial master. Britain expects to start an 18-month transition from being a member of the EU beginning January 31, to being an independent country capable of signing bilateral or multilateral trade deals. Britain may have to renegotiate all trade deals initially signed under the EU, including with African countries. In the EAC, for example, Britain had been a...