News Categories: Kenya News

Kenya to start exporting oil after achieving critical volume of 200,000 barrels

On Thursday, the first consignment of 600 barrels that was flagged off on Sunday by President Uhuru Kenyatta was received at the KPRL. The four trucks, each carrying 150 barrels, covered 1,000km journey from Lokichar in Turkana county to the port city of Mombasa. According to the national government, the KPRL storage tanks, which have been improved in readiness for the consignment at a cost of Sh200 million, will be receiving 2,000 barrels a day. Petroleum and Mining Chief Administrative Secretary John Mosonik described the journey towards exporting oil in the country as an impressive and painful. Mosonik said by next year, the oil and gas sector will be Kenya’s fourth highest foreign exchange earner after tea and coffee and tourism. “Crude oil will be sold to the world oil markets. At the moment, we will be having four trucks coming to Mombasa from Turkana daily, but this will improve to 100 trucks a day with time, translating to more jobs for youth in the country,” said Mosonik, He said the upgrading of the storage facilities at KPRL in Changamwe Mombasa is expected to be fully completed by February 2019, “In future, we are looking at upgrading the KPRL facilities so that we can be able to add value to our crude oil,” said Mosonik. The improvement works include modification and insulation of receipt tank number 117, which has a capacity of 90,000 barrels, two adjacent truck unloading bays, a steam boiler for line heating and re-heating the crude oil...

African food inspectorates seek common rules for trade

Food safety and plant health inspectorates from 19 African countries are in Nairobi to discuss ways to streamline regulations ahead of Africa-wide free market access. The meeting sponsored by United States Aid for International Development (USAid) heard that Africa must uphold high standards in food and crop health to generate inter-country trade as well as boost confidence with processed agro-products heading to foreign markets. Council of Governors Agriculture Committee vice chairman Jackson Mandago said Africa must invest in research as well as share knowledge on technological innovations with farmers to boost food production and collaborative research. Mr Mandago, also the Uasin Gishu governor, said Kenya must heavily invest in public research that will enable free roll-out of all innovations realised during research. “Private companies conducting research have an obligation to commercialise their findings and profit from their work, but public agricultural research agencies have a national duty to benefit the public,” he said. Kenya Plant Health and Inspectorate Services (Kephis) managing director Esther Kimani said it had requested for Sh1.4 billion to enable them equip their research stations as well as prepare staff for prompt response measures in case of an outbreak. Source: Business Daily

Women Agripreneurs should be strengthened in Africa

Globally, women’s contribute to agricultural development in various capacities as producers, labourers and marketers. They have an important role to play in agricultural development and food security through entrepreneurship. In developing countries women’s role as agriculture entrepreneurs is not fully explored and well recognized. Women entrepreneurs in agriculture are facing real challenges like access to financial resources, assets and training. As per FAO estimates, women worldwide are responsible for more than half of all the food produced. This includes up to 80% of food production in African countries, 60% in Asia and between 30 and 40% in South America. This shows that main activity in which rural women’s are engaged is farming. Again rural women’s are suffering from poverty due to small land holdings and subsistence farming. Gender bias and women’s low social standing due to the patriarchal nature of societies women’s are rarely legally or socially recognized as head of the farm. They are seldom granted land tenure rights and often have less access to essential production inputs such as: land; financial services; access to markets; storage; and technical support. Agripreneurs in Rwanda Rwanda is one of countries encouraging and supporting women entrepreneurs in Africa. According to the Global Gender Gap Report, Rwanda is ranked 6th globally in terms of closing gender gaps. The Government of Rwanda has made a strong political commitment to enhance gender equity and equality and is determined to implement in government policies at all levels. Rwanda is a signatory to international and regional legal...

Uganda transit cargo through Mombasa Port increased by half a million tons in 2017

KAMPALA, UGANDA- Uganda still remains the predominant transit destination through Mombasa Port, with a total transit traffic of 7,112,971 tons in 2017 up from 6,346,715 tons in 2016 according to officials from the Kenya Ports Authority (KPA). This was an increment of 522,876 tons between the two years representing an 82.3% share of the total transit cargo through Mombasa Port. “Uganda’s import traffic is the driver of this growth, recording a notable volume of 6,590.095 tons in 2017 against 5,922,160 tons handled in 2016. This represents a volume growth of 667,935 tons or 11.3%,” said Edward Kamau the General Manager Corporate Services Kenya Ports Authority. He said exports as well as imports realized a marginal increase of 522,876 tons in 2017 against 424,555 tons handled in 2016, reflecting a mild increase of 98,321 tons or 23.2%. The total through put registered at Mombasa Port had a notable growth of 10.9% recording 30.35 million tons from the 27.36 million tons that was recorded in 2016. The increase was attributed to improved efficiency assisted by continued investment in infrastructure development. Kamau said imports through Mombasa Port grew by 10.7% posting 25.6 million tons in 2017 from 23.12 million tons in 2016. It accounted for a dominant traffic share of 84.4% of the total throughput reflecting a huge imbalance of trade. “On the other hand, exports increased by 3.8% recording 3.8million tons up from 1.09 million tons handled in 2016. Container traffic increased by 9% recording 1.19 million TEU in 2017 up from...

Mombasa Port enhances regional trade facilitation with new developments

The Port of Mombasa is poised to facilitate even more trade within the region after recent infrastructural improvements, acquisition of new equipment and improved collaboration drastically boosted port efficiency and cargo throughput. The port is now one of the best-equipped in the continent, with the container terminal boasting of 13 Ship to Shore Gantry Cranes (STS), 50 Rubber tyred Gantry Cranes (RTGs) and 78 Terminal tractors.  According to the Uganda Permanent Secretary, Ministry of Works and Transport, Bageya Waiswa, traders in Uganda have realized increased growth in their businesses following initiatives implemented by Kenya Ports Authority such as Single Customs Territory that has reduced time taken by cargo between arrivals in Mombasa and transportation to Kampala. “Due to port expansion programme in Mombasa, the Authority now handles ships of up to 6000 Twenty Foot Container Equivalent (TEUS) capacity. This has significantly increased economies of scale consequently lowering the cost of doing business in the entire region,” noted Waiswa. In 2017, Uganda contributed 82.3 per cent of the total transit cargo through Mombasa port as compared to 73.2 per cent in 2013 – a 9.1 per cent increase. In a speech read on behalf of KPA’s top management during the 2018 stakeholders meeting in Kampala, the General Manager, Corporate Services, Edward Kamau attributed the improved port performance to increased collaboration between key relevant government agencies and transport infrastructural developments. “We have adopted an inter-agency approach where we closely collaborate with all cargo interveners to proactively find solutions to emerging issues. To...

Flower exporters seek to have space in Kenya Airways’ US direct flights

Kenya Airways (KQ) is yet to commit that it will offer freight space for flower exporters as it begins maiden direct flights to the US in October. According to Kenya Flower Council (KFC) CEO Clement Tulezi, KQ appears focused on growing passenger numbers as opposed to promoting trade through provision of space for cargo. “One thing we are looking at is how much of cargo space they (KQ) will have to airlift flowers from this country to the US. At the moment, we are not sure because in their business strategy, they are more focused on passenger numbers than cargo,” he said. Speaking yesterday in Nairobi after the opening of the International Flower Trade Expo, Mr Tulezi said flower exporters were in talks with KQ to help them leverage on direct flights to grow trade. Currently, Columbia dominates the US flower market, taking up about 70 per cent of the supplies. Kenya is yet to break beyond four per cent of the market, but exporters are keen to make inroads above 10 per cent, boosted by the direct flights. “We want to go into this market since we have a whole range of flowers, from low attitude to high attitude, than the South Americans are able to supply,” said Tulezi. The expo, now in its seventh year, brought together more than 135 exhibitors from Kenya, Spain, Russia, Tanzania, Uganda, Rwanda, Ethiopia, South Africa, European Union, Ecuador and India. At the same event, Trade Principal Secretary Chris Kiptoo said he was...

Dongo Kundu Sh25bn second phase tender to be awarded

The Japanese government is set to award the multi-billion shilling tender for the second phase of dualling of Dongo Kundu bypass, paving the way for the upgrade of the key infrastructure that will connects the North and South coast. The Sh25 billion contract, which is set to be awarded to the lowest bidder, will see the upgrade of the 8.9-km road start in August and run for four years. Chinese firm, China Civil Engineering Construction Corporation upgraded the stretch between Mombasa-Kwa Jomvu section to a dual carriageway, the first phase of the road expansion plan. The project was funded by the African Development Bank and the government of Kenya to the tune of Sh11 billion. “The tender for the second phase of Dongo Kundu bypass which stretches between Mwache Junction and Mteza will be awarded towards the end of June and  is set to start by August,” said the Kenya National Highway Authority (Kenha) general manager for special projects David Muchilwa on Tuesday. “Japan International Cooperation Agency is the financier for the project,” he said. Mr Muchilwa, who was speaking to Shipping ad Logistics in an interview, said the scope of the work will involve construction of two bridges, one at Mwache which will be 660 metres long and another one at Mteza (1,440 metres). A sightseeing bay will also be constructed and at least 88 hectares of mangroves will be replanted along the highway. The road will also have intelligent traffic lights at major intersections. “This is one of...

20 companies registered to import consolidated cargo

The Kenya Bureau of Standards (Kebs) has cleared 20 firms to bring in goods as consolidated cargo in a move expected to streamline importation of goods by small traders. Clearing agents pool goods for small importers into one container but while some agents have in the past taken advantage and resorted to tax evasion by mis-declaring the value of goods, others have used the channel to import substandard goods. The standards agency issued a notice to all importers of consolidated cargo, through both air and sea, to register with goods being inspected under a new rule. The Kebs head of inspection Eric Ochieng said of the 53 firms that had applied to be considered as consolidated cargo importers, less than half of them were cleared. “Only 20 firms have been approved to import as consolidators and we have written to the other 33 which had not met all the procedures and have not been approved,” Mr Ochieng said. The new rule which took effect on March 30 targets cargo containing a wide range of products or merchandise in small quantities or parcels belonging to several consignees who assemble them together. According to the new rule, all consolidated cargo must be inspected in the country of supply by agents appointed by kebs and issued with a Certificate of Inspection (CoI) before being imported into the country. The agency has contracted agencies to carry out inspection on its behalf from across the globe under the Pre-Export Verification of Conformity (PVoC) programme. They include...

How African Coffee Market Expansion Helps the Global Economy

For many Americans, coffee is less of a luxury drink and more of a daily necessity. As of 2018, 64 percent of Americans consume at least one cup of coffee daily. East Africa, one of the world’s largest coffee producers, is a historically poor region that has seen recent growth in trade due to the growing demand for coffee and support given to its farmers from U.S. foreign aid. These factors are supporting the East African coffee market. An Expanding Global Market East African coffee market expansion is the result of a few recent developments. First, the global market for coffee has been expanding as more people are escaping poverty and gaining the means to afford coffee. For example, some of the fastest-growing markets for coffee include Asian countries on the rise such as Vietnam, Indonesia and India. Due to the expanding coffee market, East African coffee producers can expand their business and look to the future with optimism.  Ugandan coffee producers are explicitly targeting these new markets. In 2017, the country reported a 36 percent growth in production and a 15 percent growth in exports. This fivefold increase in their share of the global coffee market is a direct result of new regions of the world being able to buy their product. In this way, reducing global poverty has a ripple effect that expands the global market and benefits everyone. The Benefits of U.S. Foreign Aid On top of the growing market, U.S. foreign aid has been helping to...

EAC tables sh379b budget for 2018/19

The 2018/19 budget is a step-down from the $110,130,184 presented to the House in the previous financial year. The EAC has presented for consideration budget estimates for the financial year 2018/19, totalling $99,770,716 (about sh379b) to the East African Legislative Assembly (EALA). The chairperson of the EAC council of ministers, and Uganda’s 2nd Deputy Prime Minister, Ali Kirunda Kivenjija, presented the budget to the assembly in Arusha Tanzania. The 2018/19 budget is a step-down from the $110,130,184 presented to the House in the previous financial year, a statement issued yesterday said. According to Kivejinja, priority Interventions for 2018/19 will focus on enhanced free movement of goods in the region and further liberalization of free movement of labour and services; improved cross-border infrastructure to ease cost of doing business in the region; and enhanced regional agricultural productivity. Other priority interventions include enhanced industrial development through investment in key priority sectors including leather and textile; skills development, technological advancement and innovation to stimulate economic development. The implementation of the roadmap for the attainment of the EAC Monetary Union; strengthened Peace, Security and Good Governance and Institutional Framework for EAC Political Confederation are also set for consideration. The 2018/2019 Budget is allocated to the Organs and Institutions of the EAC as follows; East African Community Secretariat ($46,693,056), East African Legislative Assembly ($17,885,852) and the East African Court of Justice ($3,982,446). The Inter-University Council for East Africa shall receive ($6,847,969), Lake Victoria Basin Commission ($13,357,673) while $ 2, 518,137 is earmarked for the Lake...