Plans by the Kenya Railways Corporation to build a two-kilometre Standard Gauge Railway line linking the Miritini passenger train terminus to the central Mombasa train station is welcome. It is a worthy investment as it will enhance faster movement of passengers between the two locations. How this vital link was initially not factored in is not clear as Mombasa- bound passengers travelling from Nairobi have been alighting at Miritini and finishing the journey by road. This has proved quite cumbersome for many as it  has seen scores of passengers heading to the Western parts of Mombasa, including Moi International Airport, being caught up in traffic jams that have been blamed on trucks carrying cargo from the Port of Mombasa. The main purpose of investing billions of shillings in the new railway system was to ease transportation of passengers and cargo. Easing congestion on our roads should be the main priority when we embark on such massive infrastructure projects. We urge the government to hasten the feasibility studies process and the sourcing of finances for the project. Source: Business Daily

Kenya has dropped plans for electrification of the standard gauge railway (SGR) line between Mombasa and Nairobi, citing its high costs and irregular power supply. Kenya Railways managing director Atanas Maina said on Thursday preliminary research had shown inadequate demand for electric trains in Kenya. The government had earlier planned a Sh49 billion electric upgrade before 2021 and ahead of Uganda linking its SGR line to the Kenyan one. “Electrifying this line also depends on our ability as a country to finance that kind of infrastructure,” said Mr Maina. “It was something that we would love to have, however, the country does not have a dependable source of electricity.” While the frequency and severity of outages in Kenya have fallen over the years, many firms still run stand-by generators to cope with any supply interruptions. China Road and Bridge Corporation, which was appointed to build the Mombasa-Nairobi line, will be offered 15 per cent over the current construction costs of Sh327 billion or Sh49.05 billion more to upgrade the line. An electric track was needed for fast movement of bigger containers and passengers in the quest to boost East Africa’s competitiveness as an investment destination. The faster SGR railway, which was built in two-and-half years, started passenger services mid last year and commercial cargo services this month. The design of the SGR rail line — which is currently run by diesel-powered locomotives — allows for the addition of a single electric line. On Thursday, Mr Maina said in a TV...

Kenya’s trade deficit has for the first time crossed the Sh1 trillion mark driven by the more than doubling of food imports and machinery purchase from abroad amid sluggish exports. The deficit — the gap between imports and exports — widened to Sh1.034 trillion in the 11 months to November, up from Sh778.04 billion in the same period in 2016, the Central Bank of Kenya (CBK) data shows. Crossing the psychological level of Sh1 trillion underlines the economic impact of the increased food imports due to a drought that posed a major risk to people, livestock and wildlife. Imports increased 20.93 per cent to Sh1.58 trillion in the period to November while exports rose a measly 3.37 per cent to Sh549.18 billion. Analysts say the widening deficit is piling pressure on the shilling against global currencies such as the dollar, denying Kenya an opportunity to create more jobs because locals lose out to foreign manufacturers. The high demand for the dollar to fund imports forces the CBK to intervene, depleting foreign exchange reserves. A wider deficit is watched closely by global investors, especially when Kenya seeks foreign debt, as it affects the recommended external debt service to exports ratio of 21 per cent, which Kenya has already breached. “Kenya’s export performance has been relatively weak compared to a lot of sub-Saharan Africa’s peers and … that means considerations around foreign exchange stability are even more important to Kenya’s macroeconomic stability outlook than what has been the case traditionally,” said Standard...

Can citizens afford new, locally made clothes? And how will Chinese factories change the landscape? In 2015, shareholders of manufacturing corporations from across the East African Community (EAC) — including Rwanda, Burundi, Kenya, Uganda, South Sudan, and Tanzania — met for a summit in Uganda to discuss “a new dawn in the history of manufacturing in [the] East Africa region.” During the summit, resolutions were made, including one stipulating that the EAC would develop a policy to support the development of sectors such as textiles and apparels, “which are crucial for employment creation, poverty reduction, and advancement in technological capability.” A year later, a handful of countries in the EAC proposed banning imported used clothing in an effort to boost the development of local textile and clothing manufacturing. In Rwanda, the Ministry of Trade and Industry developed a new strategy for “Made in Rwanda,” a campaign it had started in 2014 to boost local economy by celebrating Rwandan designers and products. Linda Mukangoga, co-founder of Haute Baso, a clothing and design shop in Kigali, Rwanda, is excited about what the future holds for Rwandan designers. “Made in Rwanda,” she says, “means being able to create clothing and services in collaboration with Rwandans for both local and international consumers.” “Made in Rwanda means being able to create clothing and services in collaboration with Rwandans for both local and international consumers.” Although efforts to stimulate East African domestic markets might appear to some to be a promising sign of the EAC’s dedication to growth, the United...

Arusha — The East African Legislative Assembly (Eala) wants speeded up removal of trade barriers hampering regional integration. Newly-elected Speaker Martin Ngoga said in Kampala on Tuesday that non-tarriff barriers (NTBs) in particular were a matter of concern. "We should continue to address these challenges in order to secure East Africa's future for prosperity," he said when the fourth Assembly began its business. Mr Ngoga, a Rwandan member who was last month elected as new Speaker for Eala,insisted NTBs in particular should be stamped out quickly in order to enhance free movement of goods, labour and services. "We need to venture into new areas of integration and consolidate those we have agreed upon," he pointed out. The Speaker cited problems which have impacted the education sector in the region such as lack of uniform fees as among issues that must be sorted out quickly. Ugandan President Yoweri Kaguta Museveni reiterated increased productivity and free trade within the bloc when he addressed the Assembly on Tuesday. He said at a time of reports Uganda was facing a shortage of food, there was a huge stock of five million tonnes of maize capable of sufficiently meeting the current needs. "We need a situation where all producers in the partner states are able to freely sell their produce," the Uganda leader said in his address, according to a dispatch to The Citizen. President Museveni also called for the region to effect better use of the existing common natural resources for its own prosperity,...

Thursday, 25th January 2018 President Yoweri Museveni has said that integration will ensure the survival of Africa. The President made the remarks in a meeting held with the Ugandan legislators in the East Africa Legislative Assembly (EALA) aimed at identifying areas of national interest that the legislators should focus on during their tenure. President Museveni told the legislators yesterday at State House, Entebbe, that their main focus should be on the integration of East Africa, which he observed will enhance the region’s prosperity, security, identity and protection of shared resources. “African leaders who do not talk about the prosperity of the continent are enemies of the people. There is no way African business people can blossom without a big market,” he said. Mr. Museveni told the legislators that they should utilize their time in EALA to monitor the progress of the common market so that the region becomes one market for business. “Although on paper, the East African Community has already removed the trade barriers, tariff and non-tariff barriers still hinder trade and inter-state borders continue to delay and increase the business costs,” he said. The President said that because of the colonial divisions, borders still remain an inconvenience to the unity of the people. “While growing up, although there were no buses to take people to and from Goma, Juba or Kigali because of the division by the French, Arabs, British and Belgians, people still managed to communicate informally,” he said. On security, President Museveni said that through collaboration,...

The East Africa Tea Trade Association has protested against the Mombasa government’s move to introduce cess charges on all vehicles transporting tea for export via the Port of Mombasa. EATTA managing director Edward Mudibo said the county issued a circular on January 12 reintroducing cess of Sh32 per package of tea. The charges had been introduced for the first time in 2014, but were suspended in 2015. The association said the Mombasa Tea Auction Centre operates as a Special Economic Zone exempted from local taxes. This is in recognition the tea traded in the auction is exclusively for export. Tea is a leading foreign exchange earner and the government has made provisions in the VAT Act, for example to exempt tea traded in the auction from paying VAT. Imposing cess charges on vehicles transporting tea to Mombasa is a form of local taxation, according to the association, which should not be the case. He said the Finance Bill that provides for the charging of the cess has exempted goods on transit from being charged. EATTA has written a protest letter to the Mombasa Trade executive challenging the cess charges on grounds tea is traded in an auction that is a special economic zone and is therefore exempt from tax. Source: The Star

The Kenya Railways Corporation has announced plans to build a 2-kilometre Standard Gauge Railway line linking the SGR Miritini passenger train terminus to the Central Mombasa train station. The move is aimed at enhancing faster movement of passengers between the two locations. Mombasa-bound passengers travelling on the SGR train from Nairobi have been alighting at the Miritini terminus, forcing them to finish the journey by road where they spend up to five hours to cover the 22 kilometre distance. Those heading to western parts of Mombasa, including Mikindani, Moi International Airport and Jomvu, have been bearing the brunt of the traffic jam blamed on trucks carrying cargo from Mombasa port. “The line will provide services for people leaving Syokimau train terminus to Mombasa and those coming from Mombasa to Nairobi by train via the Miritini terminus,” said Kenya Railway managing director Atanas Maina. Speaking in Nairobi on Thursday, Mr Maina said feasibility studies to ascertain the actual cost of the project are ongoing and will take one month. Once a feasibility study is done, he said, the project will start as soon as funds are available. Works on the high speed line, he said, will take about 12 months to complete. “The feasibility studies and preliminary designs will help in defining the various issues relevant in determining whether the project is worthwhile or not. China Road and Bridge Corporation (CRBC), China Railway Design Corporation and  APEC Consortium Limited are doing the studies.” CRBC is among the latest in a growing...

In downtown Nairobi, George Kimondo runs a shop selling second-hand women’s clothes, or mitumba. Since quitting his job with a security company to start his business eight years ago, George says he now earns as much as four times his previous monthly salary. He started by hawking clothes in offices and on the streets, before setting up a shop after one year. “Business is good during the holidays and at the end of the month,” he says, when he can generate as much as US$1000 per week. But George’s success as a businessman might be coming end. In March 2016, the six members of the East African Community – Kenya, Rwanda, Uganda, Tanzania, Burundi and South Sudan – jointly agreed to phase out the importation of second-hand clothes and shoes over three years. In a joint statement issued during a 2016 summit in Arusha, Tanzania, the EAC presidents said the move would help boost local cotton, textile, apparel and leather industries. Currently, imported second-hand goods are big business throughout Africa. According to USAID, second-hand clothing generates approximately 355,000 jobs in the EAC and some US$230 million in income (which USAID describes as a conservative estimate). From second-hand cars to medical equipment and clothes, critics say the continent is a dumping ground for used consumer goods from the Global North and they commend the EAC for taking steps to reverse the current situation. However, opponents of the ban say it will cut off an important source of inexpensive, good quality clothing from trading blocs such as...

Kenya has dropped plans for electrification of the standard gauge railway (SGR) line between Mombasa and Nairobi, citing its high costs and irregular power supply. Kenya Railways managing director Atanas Maina said on Thursday preliminary research had shown inadequate demand for electric trains in Kenya. The government had earlier planned a Sh49 billion electric upgrade before 2021 and ahead of Uganda linking its SGR line to the Kenyan one. “Electrifying this line also depends on our ability as a country to finance that kind of infrastructure,” said Mr Maina. “It was something that we would love to have, however, the country does not have a dependable source of electricity.” While the frequency and severity of outages in Kenya have fallen over the years, many firms still run stand-by generators to cope with any supply interruptions. China Road and Bridge Corporation, which was appointed to build the Mombasa-Nairobi line, will be offered 15 per cent over the current construction costs of Sh327 billion or Sh49.05 billion more to upgrade the line. An electric track was needed for fast movement of bigger containers and passengers in the quest to boost East Africa’s competitiveness as an investment destination. The faster SGR railway, which was built in two-and-half years, started passenger services mid last year and commercial cargo services this month. The design of the SGR rail line — which is currently run by diesel-powered locomotives — allows for the addition of a single electric line. On Thursday, Mr Maina said in a TV...