The Kenya Ports Authority has launched a blueprint highlighting measures it seeks to implement to boost, in the next three years, its trans-shipment business with East and Central African countries, which has remained stagnant for more than a decade. Its 2018-2047 masterplan targets more business with the ports of Dar Salaam Port and Djibouti, via the upcoming Lamu port which, when complete, will be able to host big merchant ships due to its wide berths. According to Transport Cabinet Secretary James Macharia, three berths of the target 32 are expected to be complete by October and the first mother ship with close to 10,000 twenty-foot equivalent units (teus) is scheduled to dock before December. Trans-shipment market The Lamu Port, built under the regional Lamu Port-South Sudan-Ethiopia Transport Corridor project, is expected to launch operations in November. “We expect to start competing in the trans-shipment market as the first super post-Panamax vessel is set to dock at Lamu Port before the end of this year,” said Mr Macharia. Source: The East African

The WCO, with the support of the WCO-Finland ESA Project II and the Global Alliance for Trade Facilitation (GATF) through GIZ, conducted a pre-arrival clearance diagnostic mission from 30 July to 2 August 2019. The key objective of this mission was to assist Kenya in the establishment and implementation of requisite legislative and operational measures for expediting the release of goods through pre-arrival processing, which is one of core trade facilitation measures as detailed in Article 7.1 of the WTO Trade Facilitation Agreement (TFA) and Standard 3.25 of the Revised Kyoto Convention (RKC).  Pre-arrival processing brings a higher level of predictability and transparency to Customs procedures hence improving the business environment, and leading to increased economic competitiveness and investment. WCO and GATF experts conducted an in-depth analysis of the current national situation regarding pre-arrival processing vis-a-vis relevant international standards and global best practices with a view to identifying gaps and providing recommendations on legal, procedural, technical and human resource requirements inter alia. Based on this analysis, a set of recommendations for an effective implementation of a pre-arrival processing system were drawn up in line with Article 7.1 of the WTO Trade Facilitation Agreement (TFA), Standard 3.25 of the Revised Kyoto Convention (RKC) and the SAFE Framework of Standards. The KRA, in collaboration with other government agencies and the private sector, is committed to moving forward with the implementation of a pre-arrival processing system. The WCO and GATF will continue to provide all the necessary support to KRA as may be...

About two years since actual operations started on the standard gauge railway (SGR) line between Mombasa and Nairobi, it is time to take stock of the phenomenal success the service has registered. The biggest indicator of this is the fact that in the past three months, the SGR trains have attained the initial break-even projections, bringing in 258 freight trains by transiting 23,522 container tonnes. This success has been evident in the passenger and freight components, the latter service having started only in January last year. The tonnage lifted during the last quarter from Mombasa to Nairobi increased to 1,059,215 metric tonnes from the corresponding quarter’s tonnage of 1,024,220 in 2018. Today, the SGR line operates an average of eight cargo trains daily, but this is elastic and sometimes goes to as high as 14, depending on the cargo arriving at the port. Conventional and containerised cargo topped the uptake charts and the line achieved its objective of supporting the nascent industrial and agro-processing sectors. Source: Daily Nation

The draft programme of the 2019 WTO Public Forum is now online (click here). This year's Forum takes place from 7-11 October under the headline of 'Trading Forward: Adapting to a Changing World'. A number of grain trade participants will be leading sessions, including Gafta, the Grain and Feed Trade Association, who will table 'Digital Transformation of the Agricultural Trade', and Cargill, Incorporated who will lead on 'Global Trade Systems and the Next Generation: Connecting Our World'. Other trending issues at the Public Forum include: Digitalization and digital trade (Gafta, ITC, WEF, ICC) Millennials and Gen Z expectations for the future of trade (WTO, UNCTAD, ITC, Cargill, Incorporated, Government of Canada, farming unions of Norway and Switzerland) WTO reform (Africa Trade Network, Government of Brazil, Apex-Brazil, AEGIS Europe) WTO dispute resolution (Bertelsmann Stiftung) Sustainability and trade (ECOSOC, Confederation of British Industry, Government of France, Governmnent of Canada) Developing countries and the international trade agenda (World Bank, IICA) Gender and trade (Gender and Trade Coalition, Trade Mark East Africa) Source: Public

Tanzania has struck a blow for the Central Corridor transport system, after the country signed a deal with two Chinese groups — China Civil Engineering Construction and China Railway 15th Bureau — for the construction of a 3.2km bridge over parts of Lake Victoria. The bridge will connect Kigongo and Busisi areas in Mwanza region, and help to link Tanzania to Rwanda, the Democratic Republic of Congo and Burundi via road. Currently, vehicles take about three hours to cross to either side of the lake via a ferry — two hours in a queue to get onto the ferry and another hour to get to the other side. “The bridge will reduce transport time and facilitate trade among countries in the region,” said the chief executive of the Tanzania Roads Agency, Patrick Mfugale. The government, through the Marine Service Company Ltd and Uganda Railway Corporation, has also set up a one-stop centre for the smooth haulage of cargo and passengers. Tanzania’s Minister of Works Transport and Communication Isaac Kamwelwe said that cargo lorries arriving at Mwanza from the Dar es Salaam port will go directly to the freight ship destined for Uganda via Port Bell without their content being offloaded. Efforts by Kenya, Tanzania and Uganda to revive trade and transport on Lake Victoria received a boost in November last year when Presidents John Magufuli and Yoweri Museveni signed a landmark deal. Source: The East African

East African Community member states are working towards linking the regional electronic payment system to other payment solutions in Africa, to ease trade around the continent following the launch of the African Continent Free Trade Area (AfCFTA). The performance of the East African Payment System (EAPS), which was launched in May 2014, has been hampered by the reluctance of member countries to trade in each other’s currency, leaving Kenya to control over 98 per cent of the transactions through the system. EAC central banks are now exploring ways of transforming the system by linking it with other payment solutions in Africa to enable seamless transfer of cash across the continent at both retail and wholesale levels. Bank of Uganda’s deputy governor Dr Louis Kasekende said the move will help boost intra-Africa trade and support the growth of regional firms. Currently, Kenya dominates transactions in the EAPS, which allows citizens of member countries to make and receive payments in regional currencies — the Kenyan shilling, Ugandan shilling, Tanzanian shilling, Rwandan franc and Burundian franc. During the 2017/2018 financial year, Kenyans accounted for over 98 per cent of the transactions in this system amounting to $ 2.37 billion out of $2.41 billion, with a paltry $40 million being transacted by Uganda, Rwanda, Tanzania and Burundi. Source: The East African

Major businesses at the Coast will be hit hard following a new directive by the government to transfer all imported cargo from Mombasa to Nairobi through the Standard Gauge Railway. On Friday night, the Kenya Revenue Authority (KRA) and Kenya Ports Authority (KPA) said all imported cargo will be transported from the port to Nairobi through the railway starting August 7. SELL TRUCKS "All imported cargo for delivery to Nairobi and hinterland shall be conveyed by SGR and cleared at the Inland Container Depot in Nairobi while all cargo intended for Mombasa and its environs shall be cleared at the Port of Mombasa," read part of the notice to the public. The move will render hundreds of employees working in different Container Freight Stations (CFS) and clearing and forwarding agents in Mombasa jobless as more than 85 per cent of cargo would be cleared in Nairobi. Different stakeholders in the industry have protested against the government's move, saying the mandatory rule violates the World Trade Organisation (WTO) agreement which call for free flow of cargo by the most cost-effective means. Kenya is a signatory to the rules. Kenya International Freight and Warehousing Association (Kifwa) chairman Roy Mwanthi said the association is set to issue official complaint to the government to demonstrate their frustrations. "The move has killed all CFSs and is the last nail to the economy of Mombasa as we expect hundreds of job losses," said Mr Mwanthi. More than 20 CFSs that have invested Sh12.5 billion in the...

Kenya has joined the league of Africa oil exporters after its first consignment of 200,000 barrels fetched $12 million on Thursday afternoon. That means the sweet light crude sold at $60 per barrel, an uptick of nearly 40 per cent above the $43 per barrel that the government had set as the break-even point for the Early Oil Pilot Scheme. President Uhuru Kenyatta announced the breakthrough on twitter with a concise message: "We are now an oil exporter." He expressed confidence that the oil trade would help grow the economy and end poverty. “So, I think we have started the journey and it is up to us to ensure that those resources are put to the best use to make our country both prosperous and to ensure we eliminate poverty,” said President Kenyatta. The oil production statistics were disclosed by London-based Tullow Oil, which has exploration and oilfields in Turkana. Source: The East African

The Workshop brought together key Stakeholders, Transport Corridors and Development Partners to discuss the challenges posed by GHG emissions and agree on a common methodology for measurement. Stakeholders and Development Partners from Member countries of three Transport Corridors namely; Northern Corridor, Dar es Salaam Corridor and Central Corridor established a road map of actions towards a joint effort of reducing Greenhouse Gas Emissions and Pollution in the transport sector by harmonizing emissions data collection, sources and estimation methodologies. As a way forward, after a two day mobilization workshop on Reduction of Greenhouse Gas Emissions and Pollution in the Transport Sector held in Nairobi,  Kenya, from 30th to 31st July 2019,  participants recommended that emissions data collection requirements should include among others, Vehicle/equipment type, distances covered, tonnage carried, amount and type of fuel consumed, and Emission Factors. The aim of the two day workshop was to mobilize key Stakeholders towards reducing Greenhouse Gas Emissions and Pollution by fostering a common understanding in harmonisation of comparability of indications and methods of collecting emissions data, calculation methods and agreeing on common emissions factors to be used. Specific objectives were to have a common understanding of the environmental impact of GHG emissions, the principles and evaluation methods of GHG emissions,the importance of monitoring & evaluation processesrequired, Carbon off-setting options, the use and options for sustainable energy utilization; and identifying the reporting requirements and validation techniques for GHG emissions, assessing the benefits of a GHG reduction program as well as sharing experiences on GHG evaluation in the transport and...

In the past 10 years, Kenya has adopted a new spine for national economic growth, shifting from the initial focus on agriculture and service industry, with infrastructure now largely considered the enabler to development in hitherto neglected regions and sectors. MASS EVICTIONS In Nairobi, the quest to rejuvenate the capital city’s infrastructure has been so upbeat, more so in 2018, that we now speak of mega infrastructure projects. Road construction has seen the largest of these ventures. Planned and ongoing construction projects include A104 (Mombasa Road) from the Likoni Road junction to James Gichuru Road junction by the government and Nutrip, funded by the World Bank; European Union-funded ‘Missing Link 15 B’, commonly known as Deep Sea road; James Gichuru-Rironi road; and dualling of Ngong Road. There are also plans to build a highway bridge connecting Jomo Kenyatta International Airport on Mombasa Road to Kangemi on the Nakuru highway. The 28km bridge, an expressway, is expected to stem the problem of passengers missing flights at the JKIA due to perennial traffic congestion in the city centre. The same mega road projects have happened in Mombasa, as seen in the expansion of the Sh6 billion Moi International Airport-Port Reitz-Magongo and Mombasa-Miritini roads into dual carriageways, interchanges and overpasses. Ongoing projects include the dualling of the Mombasa-Mariakani highway, Dongo-Kundu Bypass and Mombasa Northern Bypass, which were set to increase efficiency in the Port of Mombasa. Construction of a road connecting the Mombasa port to Bujumbura, which a recent report indicated is finally...