News Categories: Kenya News

EALA to debate state of EAC institutions

Members of the East African Legislative Assembly last week began a wearing road trip in their two-week on-spot assessment of institutions, installations and facilities of the EAC on the Central Corridor and the Northern Corridor. While in Kahama, north western Tanzania, Sunday Times' James Karuhanga who is part of a media team travelling with the MPs interviewed the Central Corridor team leader, MP Wanjuki Muhia  (Kenya) before they headed for Ngara, 300 kilometers away. She explained why the newly sworn in fourth Assembly embarked on the trip and what is expected of them. Below are the excerpts: After getting to Kahama last night, you covered exactly 1,509 kilometers from Zanzibar, please shed light on why two teams of regional lawmakers are traversing the central and northern corridors. We embarked on this journey from Zanzibar all the way through the central corridor to Rwanda so that we can identify and appreciate East African institutions. We found it fit for members of parliament to come out of the comfort zone and go face the reality; where are these institutions, what does the public want, how does the public perceive the Community and how much can we do for the Community? In this journey, we are meeting stakeholders such as clearing agents, government officials, and operation managers be it at the port of Dar es Salaam, or the transporters you saw at Vigwaza weigh bridge. We interviewed truck drivers to understand their story and the main agenda is to first, appreciate the institutions...

We need goodwill from EAC leaders for meaningful integration

Expulsion of Ugandans by the Tanzanian government is not something new; it happens almost every year. But I have never seen the Ugandan government react until when herdsmen were expelled. The Foreign Affairs minister wrote a letter of protest and handed it over to the ambassador of Tanzania to Uganda. Being a shadow minister for East African Community Affairs, I don't think that this higgledy-piggledy scenario would be happening between member states under the East African Community, if the heads of states of member countries were transparently committed to the integration. It is important to recollect that on November 30, 1993, the heads of states of Uganda, Kenya and Tanzania signed a permanent tripartite commission (PTC) which arrangement later ushered in the signing of the East African Community Treaty on January 22, 1999 by the three states. The integration process has been progressing in four steps embodied in protocols: I will only mention the two which have been birthed. First is the Customs Union Protocol, which came into effect in 2005; this allows East Africa to operate as a free trade area where partner states reduce or eliminate tax on goods originating from their countries and have a common tariff on goods imported from outside the participating countries. Secondly, there is the Common Market Protocol, which came into effect on July 1, 2010. This provides the region with a single economic space within which business and labour will operate to stimulate investment. The common market serves to provide freedom of...

Brooking’s 2018 Foresight report points the way for African integration in 2018

Last year, there were a lot of discussions on how Africa could leverage on its regional economic communities for more integration on the continent. Continental Free Trade Zone, was also one of the major discussions in the recently concluded African Union summit; one to be led by the new African Union chairperson Rwandan president Paul Kagame. In a recent report by Brookings Institute, the importance of leveraging on Africa’s regional communities when talking about a Continental Free Trade Zone was laid bare. The report, titled “ Foresight Africa: Top priorities for the continent in 2018” featured contributions from many influential figures on the continent including Rwanda president Paul Kagame, Ivorian president Alassane Ouattara, former Nigerian finance minister Ngozi Okonjo-Iweala, African Development Bank chairman Akinwunmi Adesina e.t.c, who all gave their thoughts on what they think will happen on the continent in 2018. Unleashing Africa’s Inner Strength The first chapter was about ‘Unleashing Africa’s Inner Strength,’ and the Rwandan president who is also leading the push for a Continental Free Trade Zone wrote on building a stronger African Union. The president referenced a survey conducted by Afro Barometer in 2015, which did an extensive study into the relative strength of regional bodies on the continent. Criteria such as trade integration, regional infrastructure, productive integration, free movement of people, and financial and macroeconomic integration were used to rank each regional bodies. The African Union recognizes eight Regional Economic Communities (REC); Community of Sahel-Saharan States (CEN-SAD), Common Market for Eastern and Southern Africa (COMESA),...

EAC Heads of State to meet over health, infrastructure

East African Community Heads of State are expected to convene in Uganda’s capital Kampala next week to discuss a number of regional matters, including infrastructure and health sector growth. Olivier Nduhungirehe, the State Minister in the Ministry of Foreign Affairs, Cooperation and East African Community, confirmed to The New Times on the agenda includes a two-day Joint EAC Heads of State Retreat on Infrastructure and Health Financing and Development. The meeting will be held between February 21 and 22 and will be followed a day later by the 19th Ordinary Summit of the EAC Heads of State, which will also be held in Kampala. “We are going to examine the progress of EAC agenda; looking into a number of issues facing the regional bloc, ranging from EAC financing to infrastructure development,” Nduhungirehe said yesterday. EAC Secretary General Liberat Mfumukeko said in a statement that preparations are in “high gear” for the joint Heads of State retreat themed “Deepening and widening regional integration through Infrastructure and Health Sector Development in the EAC Partner States’’ Mfumukeko, who was speaking at a news conference held at the EAC Headquarters in Arusha, Tanzania, to update the media on the upcoming Joint EAC Heads of State Retreat and 19th Ordinary Summit, said that the former is aimed at accelerating the attainment of the objectives of the EAC Development Strategy, African Union Agenda 2063, and the Sustainable Development Goals in the infrastructure and health sectors in the EAC. He said the joint retreat is expected to...

Regional trade hampered by increasing barriers and influx of cheap imports from China

Pakistan has become Kenya’s largest export market even as trade with the country’s East African neighbours continues to falter. The value of exports to the Far East nation went up by 69 per cent from Sh40 billion recorded in 2016 to Sh64 billion last year, boosted largely by tea, Government data shows. Pakistan has in the past been a strong market for Kenyan exports and in 2014 was the fourth largest buyer of the country’s goods after Uganda, Tanzania and Britain. Over the past five years, however, the value of exports to the Asian country have steadily increased and pushed it to the top of Kenya’s export destinations. The value of exports to Pakistan have since risen from Sh18 billion in 2012 to Sh64 billion last year. Imports have similarly recorded a 30 per cent rise to stand at Sh18 billion in 2016, up from Sh12 billion in 2012. Data from the Kenya National Bureau of Statistics (KNBS) further indicates the value of Kenya’s tea exports went up by 28 per cent from Sh124 billion in 2016 to Sh159 billion last year. Aside from tea, other export commodities from Kenya to Pakistan include coconuts, dry nuts, mangoes, fresh flowers and powdered milk while the main import is mainly rice. IN DECLINE Uganda and Tanzania, which once commanded a lion’s share of Kenya’s export market, have been on a decline. Trade with Uganda, for years the leading destination of Kenya’s goods and services to the East African region, fell by 28...

Kenya moves to harmonise cargo clearance at sea port

The government has harmonised offloading and clearance of imported goods at the port of Mombasa to curb delays. Maritime and Shipping Affairs Principal Secretary, Nancy Karigithu, said the State wants to clear obstructions in clearance of cargo and reduce bureaucracy in handling of ships. Public and private sector agencies involved in ship, cargo, crew and passenger clearance are to link up with the Single Window System, she said. Procedures and customs, immigration, health and other public authorities’ documents are among those to be streamlined. “Documentation procedures work best where the paperwork is streamlined for simplicity and efficiency. A large number of unnecessary paperwork and slow documentation processes are a serious danger to our competitiveness as a country and even as a region given the wide geographical coverage of our port users,” the PS said Wednesday. She said the harmonisation process started yesterday. “We will know how we are going to be getting information on the goods beforehand and it has to be electronic. By the time the ship is arriving in Mombasa all agencies involved in cargo will have information and we will be able to work much faster and release the ship from the port as quickly as possible,” she said. Speaking at Nyali Sun Africa Hotel in Mombasa, Ms Karigithu said the government will implement the International Maritime Organisation's (IMO) Convention on Facilitation of International Maritime Traffic. “The convention...will facilitate smooth transit in ports for ships, cargo, crew and passengers,” the PS added. The move is aimed at...

U.S. Gives Three States Ultimatum to Reverse Mitumba Ban

East African nations that are en-route to banning the importation of used clothes may soon pay the price after Washington said it will impose trade penalties in retaliation to what it sees as a blockage of free trade. The US State Department's Harry Sullivan, the Africa Bureau acting head of the economic and regional affairs, said Rwanda, Tanzania and Uganda have until next week to reverse the decision or face the penalties. The East African leaders are expected to meet at the EAC Heads of State Summit on Infrastructure and Health Financing and Development in Kampala, Uganda on February 23. "I believe the results of the meeting next week will determine how we proceed," Mr Sullivan said in a conference call with reporters. East African Community (EAC) member states agreed two years ago to impose phased ban on used clothing imports (known as mitumba) over a three-year period beginning 2019. Kenya subsequently withdrew from that agreement following US threats to end its eligibility for duty-free clothing exports to the US market under the African Growth and Opportunity Act (Agoa). Kenyan retreat US trade officials say that the mitumba ban violates an Agoa stipulation requiring beneficiary countries to eliminate barriers to trade with the America. Kenya feared the loss of the duty-free and quota-free access to the US, its third largest market. Rwanda, Tanzania and Uganda -- each of which earns far less through Agoa than Kenya -- jointly affirmed last July that they intend to proceed with the mitumba ban....

Single air transport market: The benchmark for African economic integration

The headline news at the African Union (AU) Summit in Addis Ababa last month was the announcement of the Single African Air Transport Market (SAATM), with 23 countries pledging to remove non-physical barriers to air routes, and ultimately create a single aviation area across the continent. Most of Africa’s major airlines belong to countries that are signatories, such as Egypt, Ethiopia, Kenya, and South Africa. Together, they represent over 70% of intra-African air traffic. SAATM sets a new standard for regional policy-making because the benefits are clear and the challenges more practical than political. Furthermore, it brings together coalitions of actors in government and the private sector whose interests align well. What this flagship project from the AU shows is that regional integration can succeed as long as certain conditions are met. Important lessons may be gleaned from this example. Impact International industry groups and the major African carriers immediately welcomed the news. The International Air Transport Association (IATA) had recently estimated that a unification of 12 countries’ air markets could result in some 155,000 jobs and US$1.3bn additional GDP to their economies. It is also hoped that African airlines will be able to increase their market share on the continent, which currently stands at only 20% of the total. The benefits for the air traveller and African trade were plainly obvious, as it would make connections faster and cheaper, if implemented well. Moreover, SAATM may be more significant than the sum of its parts. Because of the largely bilateral...

Cooperate to Eliminate Plastic Bags, EAC Members Advised

Environment Principal Secretary Charles Sunkuli has said collaboration between East African Community members would help eliminate plastic bags. "During a meeting of Environment ministers in Arusha last week, we agreed that cooperation is needed if we are to eliminate the menace," Mr Sunkuli told the Nation on the side-lines of the Greater Horn of Africa Climate Outlook forum at Whitesands Hotel in Mombasa that ended Tuesday. The PS said the ban in Kenya had seen an 80 per cent drop in the use of the bags. "The environment is no longer filled with the pollutants," he added. Mr Sunkuli said ministry officials would appear in Parliament to explain the ban, adding that jobs had been created since August 2017 when the law came into effect. PETITION AT HIGH COURT "Jobs for women and youth involved in manufacturing of non-plastic materials like sisal and papyrus have been created. Others are making gunny bags and biodegradable and fibre bags," he said. Asked about companies still manufacturing plastic bags, Mr Sunkuli said he was not aware of any. In Mombasa, County National Environment Management Authority director Stephen Wambua and inspectorate chief Mohammed Amir have been conducting crackdowns on businesses flouting the law, particularly at Kongowea market. They said since the ban on plastic bags took effect, the tourism city had become "aesthetically clean". "We are working with Nema to identify sources of the flat bags," Mr Amir said. But the ban is yet to take effect in grocery markets. In August 2017, the...

Agoa boosts trade with the US to $338.5bn

JOHANNESBURG - The African Growth and Opportunity Act (Agoa) has boosted US trade with Africa, which rose 15.8percent to $338.5billion (R4.04trillion) in the past year. Briefing the media from Washington DC yesterday, Harry Sullivan, the US Department of State’s Bureau of African Affairs acting director for economic and regional affairs, said the exponential growth was as a result of trade conducted under Agoa, a legislation allowing qualifying sub-Saharan African countries to export certain products to the US duty free. Sullivan said African exports to the US rose 24percent to more than $24bn, with agricultural products accounting for $2.7bn in 2017. Madagascar’s garments exports to the US rose 57percent to $152bn and Ethiopia’s total exports accounted for $92bn. The US government, which was forced into a PR exercise recently, when Trump characterised African states as “shithole countries”, said it would continue to work with Africa to reduce impediments to trade and investment - and encourage intra-trading among the continent. Sullivan identified the East Africa community as needing more focus in terms of reducing time and costs associated with transporting goods. “These are really important,” he said, adding that many of the barriers keeping African countries from doing business with each other would be dealt with. He noted that Africa lagged behind the rest of the world in terms of intra-trading, and added: “We are supporting regional immigration. (The US will) help African economies to develop regional value chain to spike global markets.” They wanted to catapult Africa into the lucrative global...