Trade Cabinet secretary Peter Munya and his American counterpart Robert Lighthizer yesterday announced the establishment of a US-Kenya Trade and Investment Working Group to deepen trade and investment ties. Munya, represented by trade Principal secretary Chris Kiptoo, said the renewed relationship points to more efforts to enhance trade. "Although AGOA preferences scheme has led to increased Kenyan exports since 2000, its utilization has been suboptimal," said Munya. Through implementation of the recently launched National AGOA strategy and action plan, Kenya seeks greater US support in order to optimise available opportunities in the remaining seven years of AGOA. Currently the US is Kenya’s fourth largest export market while the imports from the country are ranked at position eight. This is despite continued participation in the US-African Growth and Opportunity Act aimed at boosting trade between the two states. Kenya’s exports to the US stood at Sh21.6 billion between January and June while the country had imported goods worth Sh31.37 billion over the same period, Kenya National Bureau of Statistics data show. It is expected that President Uhuru Kenyatta’s visit and talks with President Donald Trump could help bridge the gap which currently is in favour of the US. Kenya’s export market is currently led by Pakistan followed by Uganda, Netherlands, the US and United Kingdom respectively while top origins of imported goods are China, India, Saudi Arabia, the United Arab Emirates and Uganda. Introduced in 2002 by then US President George W. Bush, AGOA was created to provide access to the US...

President Uhuru Kenyatta wrapped up his official visit to the US with a message that Africa is open to mutually beneficial trade and investments with the world. Speaking to the BBC just after his meeting with President Donald Trump, the President observed that Africa has come of age and does not look to the world for aid but how to foster win-win partnerships that benefit all parties involved. "There has been dramatic change across the African continent where people are beginning to get a better understanding of themselves, who they are and where they want to be," he said. The Head of State added: "And we are looking at how we can partner with countries across the globe in a partnerships that are not patronising but those that are anchored on a win-win positions." The President spoke shortly before he departed Washington DC on Monday evening after a busy day that saw him hold bilateral talks with President Donald Trump. He also met business executives of leading US companies during which he witnessed investment deals worth USD 238 million (Sh24 billion) signed between Kenyan and US companies. Uhuru termed his meeting with President Trump a big success, saying it cemented a relationship that was already strong between Kenya and the US. "The meeting with President Trump was fruitful. We discussed security, especially the fight against terrorism. We also discussed how to increase trade and investments between our two countries and how US companies can help create jobs for our youth," he...

The East African Community had given itself a deadline of 2019 to start phasing out importation of second-hand clothes from the US. Commonly known as mitumba, the presidents of Kenya, Uganda, Tanzania, Rwanda and Burundi had agreed in 2016 to stop further importation from 2019, saying it would protect their nascent textile and leather industries. Then things started to fall apart. First, the Secondary Materials and Recycled Textiles Association (Smart), a US lobby, argued the ban would amount to a trade barrier, violating the Africa Growth Opportunity Act (Agoa). The Act, created during the George W Bush years, allows African countries like the EAC members to export goods to the US through tariffs. WARNINGS Then the US government itself started giving warnings to each of the EAC countries: If any ban was imposed, they would lose the privilege of selling goods to the US and the attendant jobs that come with it. Last year, Kenya acted first, pulling out of the EAC deal to ban mitumba. Then Trade Cabinet Secretary Adan Mohammed told journalists that Nairobi was letting market forces determine what Kenyans want to buy between mitumba and new clothes produced locally. "Our policy is, of course, that it is our desire to develop and promote our textile industry in our country to create more jobs for people in our country," he argued. "And through the transition of market forces we would like mitumba clothes to compete with clothes that are produced within East Africa, within Kenya, and if...

The report shows that in the month of June, Mombasa port handled throughput of 2,720,000-deadweight tonnage (DWT) which is 0.6 per cent increase compared to the same month last year. The report further shows that the cumulative container traffic for the period of January to June saw an increase of 5.3 per cent with the port handling 614,625 TEUs compared to 583,6661 TEUs during a similar period last year. The growth is attributed to an increase in dry bulk and containerized cargo which recorded an increase of 6.8 per cent and 10.6 per cent respectively. Daniel manduku KPA’s acting managing director said that the increase of throughput and container traffic is an indication of economic activity in the region but also an increase in performance of the port authority. The performance report shows that the average period containers stay at the marine terminal upon offloading from the containership was 3.4 days, compared to 3.8 days last year. Read: KPA seeks to boost cargo handling capacity at Mombasa port The rail cargo freight services to be constructed in Mombasa would bring positive impact hence reduce congestion in the port. Container ships turnaround statistics shows correspondence to the length of time a ship takes in the port before exit. The ships spent an average of 2.8 days at the port compared to 3.1 days last year. The good performance at Mombasa port follows the completion of the new second container terminal at the Port. The Sh.28 billion terminal which came into operation in 2016...

Farmers of peas, particularly those growing sugar snaps and mange tout varieties, now have a reason to smile, thanks to the lifting of the five-year ban by European Union (EU). According to Kenya Plant Health Inspectorate Service (Kephis) managing director Esther Kimani, EU’s commission saw the determination farmers had in adhering to their standards and decided to lower the checking levels to five per cent. “Farmers were able to learn fast and adhered to the requirements, a thing that forced the EU to drop its checking level of percentage from 10 to five per cent,” she says. MRL REQUIREMENT Following this amendment, Kenya’s produce will now be checked at the five per cent level. In 2013, farmers of peas were not adhering to the EU market requirements by exceeding Maximum Residue Limits (MRLs) on produce which was detected on entry to the EU markets. "This forced EU to slap a ban on the two crops because of the failure by exporters to conform to the 10 per cent MRLs requirement," Ms Kimani, told the Nation. RIGHT CHEMICALS She however noted that the county produce are still checked but randomly adding that farmers particularly small holder will not incur extra costs on their produce because of extended checks at the EU points of entry. Ms Kimani says Horticulture Competent Authority, a committee chaired by Kephis and coordinated by the ministry of Agriculture managed to bring down the level of MRLs as well as sensitise farmers on importance of using the right chemicals...

Kenya is expected to sign a Sh380 billion contract for the second phase of the Standard Gauge Railway (SGR) in September. Speaking in Mombasa, Transport and Infrastructure Cabinet Secretary James Macharia said the deal will be inked during this year’s Forum on China-Africa Corporation (FOCAC) that will be held from September 1-5 in China. “We shall be travelling to China on the first week of September for the FOCAC summit and we shall sign the Sh380 billion contract for the second phase of the SGR from Naivasha to Kisumu,” Mr Macharia said. SH800 BILLION However, the CS did not name the financier of the second phase, only saying the project is a great opportunity for investors to build industries and houses along the corridor, beginning from Mombasa to Kisumu. Speaking during the Architectural Association of Kenya annual convention at Pride Inn Hotel, the CS said the signing of the deal will put the cost of the complete project at Sh800 billion “The Mombasa-Nairobi phase cost Sh327 billion, the extension to Naivasha cost Sh150 billion and the final phase will cost Sh380 billion,” Mr Macharia said. According to the government's plan, phase 2B of the project will start at the planned Naivasha Industrial Park where Phase 2A ends. INLAND PORT It will pass through Narok, Bomet, Kericho counties and terminate in Kisumu where the government will put up a modern inland port. The railway line will have 25 stations — a county station in Kisumu, six intermediate stations and 18 crossing...

Arusha. The East African Business Council (EABC) is seeking the support of regional legislators to expeditiously tackle business challenges within the bloc. “The private sector has continued to face numerous challenges which the assembly is best placed to address,” said Mr Mwine Kabeho, the vice chairman of the body. He made the remarks during consultations when a high-powered delegation of the council visited the East African Legislative Assembly (Eala) in Arusha earlier this week. Mr Kabeho, who is the director of the Uganda-based Madhvani Group Limited, said hurdles such as trade barriers within the East African Community (EAC) hampered fast tracking of integration programmes. These, according to him, include the unresolved issue of non-trade barriers (NTBs) and failure to harmonise domestic taxes. Others are the high cost of air travel and telecommunications in the region despite repeated calls that they be lowered to reduce the cost of doing business. Two months ago, EABC expressed its concern over falling intra-regional trade in the community and called for concerted efforts to reverse the trend. Statistics indicate that intra-EAC trade declined by 10.1 per cent between 2013 and 2014 and by a further 14.6 per cent between 2015 and 2016, largely due to persistent NTBs and restrictions on exports of certain products. EABC ambassador and former Eala member from Kenya Peter Mathuki noted during the discussions that it was time the two institutions worked closely together when seeking solutions to the problems. “We have to resolve many issues for a stronger integration and...

EAST African Community (EAC) has embarked on concrete steps to control and prevent Aflatoxin amid the official launch of nine sets of policy briefs on the poisonous substance. During the launch in Nairobi, Kenya it was declared that the EAC Secretariat has prioritised Aflatoxin prevention and control as one of its flagship projects. The Principal Secretary (PS) in Kenya’s State Department of Agriculture Research, Ministry of Agriculture, Professor Hamadi Boga officiated the launch on behalf of Cabinet Secretary in the Ministry of Agriculture, Livestock, Fisheries and Irrigation. A communiqué availed here by the EAC Secretariat Head of Corporate Communications and Public Affairs Department, Mr Owora Othieno quoted Professor Boga as saying that Africa loses up to 670 million US dollars annually in lost exports due to Aflatoxin contamination, with about 40 per cent of foods in the domestic markets exceeding allowable levels of Aflatoxin in foods. The World Health Organisation (WHO) describes Aflatoxin as poisonous substances produced by certain kinds of fungi found naturally and posing a serious health risk to humans and livestock. They also pose significant economic burden, leading to destruction of over 25 per cent of the world’s food crops, annually. Most human exposure comes from nuts and grains. The PS said that the nine sets of policy briefs on Aflatoxin contain key recommendations on strategic policy actions and interventions required to mitigate the impacts and effects of Aflatoxin. Existing efforts to mitigate Aflatoxin at national level have remained fragmented and not adequately supported, technically and financially....

NAIROBI, Aug. 22 (Xinhua) -- The prolonged conflict in South Sudan has seen Kenyan banks scale down operations in the country, and look for opportunities outside the East African Community (EAC). The banks have halved their branches in South Sudan, initially one of the promising markets, since the war started in 2016. However, as the South Sudan market shrinks, the commercial banks in the East African nation's biggest economy have sought new business or scaled up operations in other countries that include Rwanda, Tanzania, Congo DRC, Malawi, Burundi and Botswana. Some nine banks have subsidiaries outside Kenya, with the institutions increasing the number of the branches to 306 in 2017, up from 297 in 2016, the latest sector report from the Central Bank showed Wednesday. From about 40 branches in South Sudan, Kenyan banks now have only 20 branches, with a majority having closed them down. "Kenya Commercial Bank (KCB) Group continued to scale down its operations in South Sudan following the deteriorating security condition that started in 2016. The bank cut its branch network to 11 from 17 in 2016," said the report. Cooperative Bank has four branches while Equity Bank has five, with the number of branches by the two remaining flat. The banks have, however, spread to Malawi, Botswana, the Democratic Republic of Congo (DRC) and Burundi, markets that initially looked distant when South Sudan was promising. "Equity Bank scaled up its operations in Congo DRC in 2007 from 31 to 39 branches. The bank has 79...

Early at the beginning of the year, members of the East African Legislative Assembly (EALA) conducted on-the-spot inspections of East African Community (EAC) projects, organs and facilities along the two trade corridors; Northern and Central. The aim of the tour was to identify bottlenecks to the effective implementation of the EAC Customs Union Protocol. Among the facilities put in place was the East Africa Trade and Transport Facilitation Project (EATTFP) set up to reduce transit cargo time by eliminating Non-Tariff Barriers (NTBs) and enhance safety. While many unnecessary weigh bridges were removed along the Central Corridor and resting areas for long distance truck drivers set up - at least after every 12 hours on the road - the safety issue still lags behind. When EALA members arrived at the Rusumo One-Stop Border Post along the Tanzania-Rwanda border, they pointed at the lack of adequate safety and emergency measures. Seeing the number of trucks hurdled together, with some carrying inflammable liquids and gases, it was as if they were waiting for disaster to strike … and it did this week. A fuel tanker on the Tanzanian side lost control and rammed into other parked trucks sparking an enormous explosion. The nearest fire engine was in Rwamagana, a two-hour drive on the Rwandan side. Rwanda National Police also sent another fire engine from Kigali. Rwanda Defence Force (RDF) had the quickest option; it immediately swung into action and dispatched its fire-fighting helicopter into action. It was not the first time RDF choppers had...