President Uhuru Kenyatta is expected to commission the second phase of the railway paving the way for passenger and cargo services on the railway line between Nairobi and Naivasha. President Kenyatta is also expected to commission construction of the Nairobi Expressway Project which connects Mombasa Road and Nakuru Highway at Rironi that is projected to cost 50 billion shillings and take 3 years to complete. The 120-kilometer standard gauge railway line between Nairobi and Naivasha connects Mombasa through Nairobi to the resort town of Naivasha, where a dry port is under construction to ease the movement of goods. The Nairobi-Naivasha railway line has been under construction since October 2016 with four stations at Ongata Rongai, Ngong Mai Mahui, and Suswa. The construction of the railway line is being undertaken by the China Communications Construction Company. The project is expected to be commissioned this Wednesday by President Kenyatta at the Suswa station, the largest of the four passenger stations. The contractor has been running trial text in the last one month in readiness to commission the project. Transport Cabinet Secretary James Macharia has said the project has been completed within the budget and agreed time-frame. Some salient features of the line include the longest railway tunnel in Africa at 4.5 kilometers and a 6-kilometer super-bridge over the Nairobi national park. President Kenyatta is further expected to launch the construction of the Mombasa road to Rironi expressway. The 50 billion shillings project first proposed eleven years ago is expected to reduce travel...

As a part of its marketing strategy to promote the newly developed Lamu Port, the Kenya Ports Authority has invited shipping lines to tour the port. According to reports, more than 10 shipping lines have agreed to so far to visit Kenya’s Lamu Port. Edward Kamau, general manager corporate services at the Kenya Ports Authority told the media that, “We are taking the shipping lines to Lamu to see and appreciate the facility and infrastructure that is being put in place ahead of commissioning.” He added,” We also want them to understand what is expected of them once we commence operations at the new port.” The Kenya Ports Authority’s marketing strategy also includes offering promotional tariffs to logistic companies which includes a 30 days free storage period for transshipment and transit cargo, 14 days free storage period for domestic cargo and a 40 percent discount for cargo-based charges as per the Kenya Ports Authority’s tariff. Edward Kamau also revealed that the Kenya Ports Authority will promote Lamu as a transshipment port. Recently, Denmark’s – Maersk, which happens to be the world’s largest container shipping firm agreed to call at Lamu Port. Maersk, which is the largest container ship and supply vessel operator in the world since 1996, will connect the Lamu Port to 300 global ports. The Kenyan government is developing the first three berths at the planned 32-berth port which is part of the Sh2.5 trillion Lamu-South Sudan-Ethiopia Transport Corridor (Lapsset). The project, which was flagged off in 2012,...

The intra-Global Climate Alliance Plus (GCCA+) Programme on supporting Climate Change Adaptation and Mitigation Actions in the East African Community has been launched at the EAC Headquarters in Arusha, Tanzania. The European Union (EU) is providing funding to the tune of 1.6 million Euros for the four-year project which commenced in July 2019 and runs up to June 2023. The project which was launched by the EAC Secretariat in collaboration with the EU will, among other things: support EAC Partner States in addressing different climate change challenges; reviewing and updating their Nationally Determined Contributions (NDCs) for the effective implementation, and; developing community based climate change initiatives that will have tangible impacts on local communities. In his opening remarks, the Chairperson of the Meeting, Eng. John B. Kizito, on behalf of the Ministry of Foreign Affairs and International Cooperation, Rwanda thanked the EU for its support in enhancing the capacity of the EAC region on climate change, strengthening the implementation of climate change actions, the Paris Agreement and regional capacity to access climate change funding. Eng. Kizito cited some of the challenges posed by climate change in the region and echoed the need to take concerted measures in strengthening resilience while adopting low carbon and sustainable development pathways. The EAC Deputy Secretary General in charge of Productive and Social Sectors, Hon. Christophe Bazivamo, who represented the Secretary General, reiterated the EAC’s commitment to mitigate the impacts of climate change, adding that the Community had developed EAC Climate Change Master Plan (2011-2031),...

The East African Community (EAC) member states on Thursday pledged to enhance cooperation in order to curb tax revenue losses. Patrick Mukiibi, commissioner of tax investigations department, Uganda Revenue Authority told Xinhua in Nairobi that the exchange of information in the economic bloc is critical to boosting domestic resource mobilization. “The overall aim of joint investigations is to boost the tax compliance rate which has a positive effect on tax authority revenues,” Mukiibi said during the East Africa regional meeting for commissioners of investigation and enforcement. The meeting brought together tax investigation commissioners from Kenya, Uganda, Rwanda, Burundi and Tanzania to discuss ways of detecting and combating tax evasion and tax crimes in the region. Mukiibi said that enhanced collaboration is necessitated because companies in the region have set up subsidiaries in other partner states. “It is also important to work together in order to learn lessons from each other given that different countries have developed different capacities and competencies,” he added. According to the Ugandan tax official, optimum regional cooperation will require that some national laws be amended in order to ensure a harmonized domestic tax regime. David Yego, commissioner of tax investigations and enforcement at Kenya Revenue Authority said that sharing of intelligence across the trading bloc will ensure that tax fraud and evasion that is committed across borders are detected and those found culpable are prosecuted. Source: CGTN Africa

A recent cut in US funding for combating HIV/Aids in Kenya does not amount to a scaling back of US interests in the country, the State Department's top Africa official said on Wednesday. “Our official government funding that we spend around the world represents a very, very small percentage of total US investment in countries,” Tibor Nagy, the assistant secretary of state for African affairs, told reporters. “A great proportion of investment in Africa comes from our private sector,” the diplomat added. In the case of Kenya, US foreign direct investment totalled $405 million in 2017 — a 7.5 percent decrease from 2016, according to the Office of the US Trade Representative. The US also registered $644 million in imports from Kenya in 2018 — a 12.6 percent increase from the previous year, the same source indicates. Mr Nagy offered his comments on US government assistance and private investment in response to a journalist's question about a sharp reduction in assistance to Kenya through the President's Emergency Programme for Aids Relief (Pepfar). Source: The East African

Kenya will in January improve its cargo handling rank in Africa to position three after the commissioning of four more ports, Kenya Ports Authority (KPA) has said. Currently Kenya is ranked fifth after Egypt, South Africa, Tanzania and Morocco due to increased efficiency in cargo handling and the rising volumes of containers entering and leaving its port. The ongoing construction of Lamu port, Shimoni fishing port, the Inland Container Depot in Naivasha and the lakeside port of Kisumu are at an advanced stage of completion. KPA managing director Daniel Manduku told Business Hub that KPA projects to cross 1.3 million Twenty-Foot Equivalent Units (TEUs) at the end of the year from one million TEUs achieved last week. “We are optimistic to move up to position three from the current fifth in Africa by the end of the year. Ports are rated on their efficiency and the volumes of cargo they handle. We believe we are improving tremendously,” he said. Land reclamation Numbers released last month show that annual handling capacity at the Port of Mombasa had increased from 250,000 TEUs in 2008 to the current above one million TEUs. The recent reclamation of 100 acres of land from the sea in Phase 1 of the port’s expansion programme will inject an additional 550,000 TEUs container terminal capacity. “In the maritime sector the one million TEUs mark is very high and I am happy that we hit the one million TEUs mark almost four months to the close of the year. Going by...

The Common Market for East and Southern Africa (Comesa) has launched two projects aimed at formalising cross-border trade among small scale businesses. The move is expected to enhance Malawi’s exports under the block. This follows the inaugural meeting of the projects steering committee which began on Monday in Lusaka, Zambia. The first project is a €15 million Regional Small-Scale Cross Border Trade Initiative (SSCBTI) while the second is a €53 million Trade Facilitation Project, both funded by the European Union (EU) under the 11th EU Development Fund. The Trade Facilitation Programme aims at increasing intra-regional trade flows of goods, persons and services by reducing the costs and delays of imports and exports at specific border posts. It is expected that this will be addressed through reduction of non-tariff barriers, implementation of digital Free Trade Area, World Trade Organisation Trade Facilitation Agreement, improvements of the Coordinated Border Management and liberalisation of Trade in Services and free movement of persons. A statement from Comesa says implementation of the two projects is expected to contribute to higher revenue collection for governments at the borders, increased security and improved incomes for traders. “The SSCBT initiative is designed to address challenges facing small scale traders which include high transactions costs arising from delays at the border, high taxes and high transport costs; corruption and harassment among others,” reads the statement in part. Spokesperson in the Ministry of Industry, Trade and Tourism, Mayeso Msokera, said the development is expected to boost government’s revenue and trade for...

A proposal to amend the East African Community (EAC) Customs Management Act, 2014, to extend the time for removal of bulk containerized goods from the ports of discharge, is in the offing, in a move likely to reduce the cost of doing business in the region. In the regard, the Assembly has granted EALA legislator Abdikadir Omar Aden, leave to introduce a Bill to amend section 34 (5) of the existing Customs Management Act, 2014, to realise the above objective. With it, the Assembly further adopted a motion to amend the Act, when it received support yesterday. The Motion moved by Mr Aden, Chair of the General Purpose Committee and seconded by Dr Abdullah Makame, was moved under Article 49(1), 59(1) and Rule 26 of the Rules of Procedure of the House. At the moment, under the existing Act, the entry of cargo is required to be made within twenty-one days from the date of discharge of the vessel failing which the goods contained in the cargo begin to attract a charge or demurrage. However, Hon Aden avers that extending the time for removal of large consignments from the port of entry would eliminate demurrage charges and hence goods more affordable and allow for longer storage period to facilitate clearance. In the EAC, all cargo coming in to the region enters through the designated ports but mainly through the ports of Dar es Salaam in the United Republic of Tanzania and Mombasa in the Republic of Kenya. “I am concerned...

THE East African Business Council (EABC), in partnership with East African Community (EAC) and USAID support has convened over 38 industry champions and business leaders from the region to discuss opportunities of the African Continental Free Trade Area (AfCFTA), tariffs, rules of origin and trade in services. The EABC Chief Executive Officer (CEO), Peter Mathuki said in his opening remarks in Arusha yesterday that, “We need more public-private dialogue and involvement of the private sector in the negotiations of the AfCFTA at national, regional and continental levels,” He urged the EAC Partner States to eliminate barriers to trade, improve infrastructure and enhance regional value chains through manufacturing to harness opportunities availed by AfCFTA. He appreciated Rwandan President and the Chair Emeritus of the African Union and current Chair of the Summit of EAC Heads of State Paul Kagame President for championing the 1.2 billion continental markets. “Given that commencement of trading within the AfCFTA is slated for 1st July 2020, the East African private sector is steadfast in setting pace of the AfCFTA negotiations. EABC is in close discussion with the African Union and has offered to host the first-ever African Business Council in East Africa,” he said. In his remarks, Mr Christophe Bazivamo, the EAC Deputy Secretary General for productive and social sectors reiterated EAC’s commitment to work in close partnership with the private sector. “The world is targeting the Africa market, what are we targeting as East Africans?” said Bazivamo. He further said the EAC has agreed to...

The Kenya Ports Authority recorded a 9.9 per cent growth in revenue between January and August compared with the same period last year. The increase was attributed to efficiency at the Mombasa Container Terminal Two (CT2), made possible by the automation of container handling processes and improvements in documentation and clearance processes. The special transshipment berth is located at CT2, and was built at a cost of Ksh27 billion ($270 million). In the eight months to August, the port of Mombasa handled 22.8 million tonnes up from 20.7 million tonnes in 2018; transshipment increased by more than 131.9 per cent, from 698,705 last year to 1,619,960 this year. On cumulative container traffic, a significant increase of 22,057 twenty-foot equivalent units (TEUs) or 9.5 per cent was realised during the period of July-August 2019/20 compared with the same period 2018/19 with transshipment traffic mainly accounting for the good performance growing by 30,933 TEUs, which is a 214.6 per cent growth. This is the highest transshipment the port has recorded, and is expected to boost earnings according to head of container operations Edward Opiyo. “Increasing transshipment cargo will reflect positively in our profits, and the CT2 where we have Berth 21 has greatly contributed to this. The completion of the second phase will increase transshipment cargo even more,” said Mr Opiyo. Containerised cargo and liquid bulk recorded a growth of 23.5 per cent and 11.2 per cent respectively. Uganda remained the port’s biggest client, accounting for more than 4.66 million tonnes of...