Clearing and forwarding agents want issues regarding efficiency in clearance of cargo in Nairobi resolved before they can freely transport goods on the Standard Gauge Railway (SGR). They have outlined a number of issues they want the government to address first before they start nominating cargo for transportation from Mombasa to Nairobi on the SGR freight trains. The agents who met in Nairobi last week resolved to seek assurance from Kenya Railways Corporation (KRC), Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) on the specific time it will take between loading, arrival and clearance of cargo so as to minimise costs of business. Resolutions of the meeting indicate that the agents also demanded closer collaboration with stakeholders to improve the situation which they claim has made SGR allegedly fail to convince importers, through clearing agents, to move cargo on the line. Kenya International Freight and Warehousing Association chairman, William Ojonyo said while agents appreciate the cost relief and transit time reduction by SGR, the four days free storage time given at its terminal may not be enough and could lead to higher demurrage fees. This, he explained, is due to inefficiency in clearing procedures at the Inland Container Depot (ICD) in Embakasi, Nairobi. “Agents resolve to be given at least 30 days storage free days at ICD to clear and evacuate their cargo. They also want to be assured of similar benefits as the ones they have been enjoying at Mombasa’s Container Freight Stations,” Ojonyo said in the summary...

MOMBASA, Kenya, Jan. 24 (Xinhua) -- Chinese automaker Foton on Wednesday officially launched its first assembled trucks in Kenya as it moves to cement its footprint in the local market. Sun Qingzhong, General Manager of Foton Motor Kenya Ltd., said in Mombasa that the company which has been pushing for the globalization of its brands, has set a long-term strategic plan in Kenya and Africa. Sun said the company will be assembling its vehicles at Association of Vehicles Assemblers (AVA) plant in Miritini, west of Mombasa. "Today, Foton Motor is accelerating the development of localization in Kenya. With the off-line of first truck from AVA, Foton Motors has realized the localization of its main value chain officially today," said Sun. He said Foton is committed to localization, by which they are committed to providing local customers with high value products. The Chinese automaker will also provide spare parts, after-sale services and at the same time increase local taxation and create more job opportunities, contribute to the development of local economy. "On broader basis, Foton eyes to penetrate into East African Community (EAC) and Common Market for Eastern and Southern Africa (COMESA) Free Trade Zone through its assembly plant located in Kenya in the near future," Sun said. He said Foton partnership with AVA is very strategic. AVA is one of the three largest assembly plants in Kenya, also assembling for some internationally renowned brands such as Toyota, Scania and others. "By cooperation with AVA, we aim to reduce the cost,...

The UK government is set to inject £211 million (Sh30 billion) to support the second phase of infrastructure projects in measures to ease cross-border trade between Kenya and her neighbours. Britain’s International Development Secretary Penny Mordaunt, who visited Kenya last week, was impressed by the progress made in the first phase of the programme that has since cut customs clearance times – from an average of nine to two days UK Department for International Development was one of key financiers of the first phase that started in 2010-2016 and saw Trade Mark East Africa help reduce customs clearance times from an average of nine to two days, and reduced the cost of trading across the region with new cargo-tracking technologies and improved infrastructure. “Here in Kenya, technology is delivering UK aid in new ways, from innovative cash transfers using biometrics, through to trade technologies that support economic growth, jobs and investment. It is in all our interests that we harness the best of British innovation with African entrepreneurialism – to create jobs, defeat poverty, and support our future trading partners, as we work towards a shared prosperous future,’’ said Mordaunt. Mordaunt pledged £60 million (Sh 8.7 bn) to fund sustainable urban economic development partnership in 10 rapidly growing towns in Kenya. The money will go towards urban economic planning, investment climate reforms and attracting private sector investment. UK has also invested £8 million (sh 1.16 billion) through the World Bank to assist the Government of Kenya in the development of...

Common Market for Eastern and Southern Africa (COMESA) has stepped up efforts to promote cross-border trade by embracing e-commerce to be able to “minimise physical barriers”. to trade across the region. Dr Francis Mangeni, the COMESA director of trade and customs, said that trade facilitation is a key priority for Africa, and a “digital free trade area (FTA) is a practical way of increasing intra-regional trade and creating wealth”. Mangeni added that the online FTA will be rolled out soon enabling member states to trade commodities, goods and services without need to travel. In a statement, Mangeni added that providing traders with the necessary digital tools will help boost intra-regional trade and enhance competitiveness of COMESA members in global trade. The official was speaking after a two-day workshop on the digital free trade area held in the Seychelles last week. Speaking in an interview with The New Times about the development, Geoffrey Kamanzi, the PSF director for trade facilitation and negotiations, said the move is a “timely measure that will help reduce the cost of doing business within the bloc”. It is also a unique opportunity to further realise the potential of free trade through ICT, as well as contribute to greater regional integration. Trade experts agree that in today’s rapidly-changing world and economies, the region cannot afford to be left behind. They say that embracing technology will enable the members in the bloc to overcome some of the barriers to trade which have for a long time made the...

The British government’s aid ministry says its new programme to support technological improvement to the way Kenya trades has proved successful. The UK says that it is now about to put an additional £211 million (Sh30.2 billion) into the second phase of the Trade Mark East Africa (TMA) programme. Following the visit of the UK’s Secretary of State for International Development Penny Mordaunt’s to Kenya earlier this week, a statement by the aid ministry hailed the “incredible power of technology to deliver aid in new ways” through TMA. Largest exporter The UK is the fifth largest exporter of goods to Kenya and trade between the two countries is worth over £1 billion annually. UK's Department for International Development (DFID) says innovative technology is helping Kenya build resilience to climate challenges, including drought, and to build a modern economy for the future. It said that Trade Mark East Africa was helping enterprise and creating jobs by “breaking down barriers to trade.” In Nairobi, Ms Mordaunt saw how the first phase of the programme has cut customs clearance times – from an average of nine to two days – and reduced the cost of trading across the region with new cargo-tracking technologies and improved infrastructure. Ms Mordaunt heard from British businesses about how this technology has helped them enter the Kenyan market. New ways “Here in Kenya technology is delivering UK aid in new ways, from innovative cash transfers using biometrics, through to trade technologies that support economic growth, jobs and investment,”...

Heavy investments in infrastructure in Kenya has meant increased importation of heavy machinery and equipment. Increased spend on such projects as expansion of road network, building of the Standard Gauge Railway (SGR) as well as geothermal, wind  and solar power  projects has resulted in shipping in of abnormal cargo. It is not uncommon to spot huge boilers, for example, being moved, snaking their way to factories either in Kenya or in neighbouring countries. The rising number of such abnormal cargo on the road prompted Kenya National Highways Authority (KeNHA) to formulate regulations, which were enforced in mid-October 2013, to reduce damage on the road and ensure safety of other motorists. The big question is how this type of cargo is moved with no or minor damages. Abnormal cargo, according to the Kenya National Highways Authority Regulations 2013, is one that exceeds the legal load or dimensional limits under the Road Traffic Act. The overall length for rigid vehicle is restricted at 12.5 metres, that of articulated vehicles at 17.4 metres, while a combination of vehicles is 22 metres under the traffic law. The allowable axle load limit on roads in the six-nation East African Community is 56 tonnes, with an additional cargo attracting an overload penalty. KeNHA, however, issues special exemption permits to transportation and logistics firms in business of moving abnormal load on a case by case basis. Such licences attract an additional fee ranging from Sh5,000 to Sh250,000 depending on the size and weight of the cargo. The...

Britain’s Secretary of State for International Development, the Rt Hon Penny Mordaunt, has hailed the “incredible power of technology to deliver aid in new ways” on her first official visit to Kenya. While in the country, Ms. Mordaunt saw how UK aid is supporting vulnerable communities in Marsabit County devastated by East Africa’s drought. In Nairobi, Ms Mordaunt also heard how UK support for innovative programmes is helping to create jobs for a rising population. Ms Mordaunt was also in the country to hear from British business about how new technology has helped them tap into the Kenyan market. The UK is the fifth largest exporter of goods to Kenya and trade between the two countries is worth over £1 billion annually. Ms Mordaunt also held a successful roundtable meeting with Kenya Cabinet Secretaries. The meeting chaired by the Cabinet Secretary for the National Treasury, Mr. Henry Rotich focused on ways of enhancing Kenya-UK bilateral relations and developing a partnership that will benefit both Kenya and the UK. The meeting also discussed President Kenyatta’s big four priorities: manufacturing, affordable housing, universal health care and food security for all Kenyans and agreed to work together to promote this agenda. During the meeting, the two governments agreed to co-host with the International Disability Alliance, the Global Disability Summit in London in July 2018 as a signal of commitment to work for all people. During her visit the International Development Secretary, launched the second phase of Trade Mark East Africa. The UK is significantly...

The East African Community will have a new logo later this week after judges scrutinize over 400 entries of a recently announced competition. The EAC spokesperson Richard Othieno says by the end of Wednesday, all the entries will have been presented to the branding experts for scrutiny. Also to be designed are logos for the three organs of the Community and eight institutions, totalling eleven. Under the EAC Brand Architecture competition, bidders are also required to recommend the corporate colour of the organization and a logo/emblem which should be a unique unifier of the EAC. The exercise will see a new flag designed for the Community, replacing the current one which has been criticised for having “too many colours. The winner of a design competition, which was launched in Juba, South Sudan on June 1st, 2017 and open to youths, will be awarded $ 25,000 (approximately Sh. 55 million). Source: 93.3 KFM

The East African Community is gearing up for the leaders’ retreat next month expected to seek sustainable ways to finance major infrastructure and health projects. For the infrastrcutre sector, the regional leaders will also consider new strategies to engage with the private sector and multi-lateral agencies such as the African Development Bank in financing. “The Heads of State Retreat on Infrastructure will also seek ways to mobilize the required financing to construct connecting roads that will decongest the cities and enhance ports logistics”, the Arusha-based EAC secretariat said at the weekend. Themed ‘Deepening and widening regional integration through Infrastructure and Health Sector Development in EAC Partner States’, the event will take place at Speke Resort, Munyonyo on February 21st to 22nd. “The Heads of State will address infrastructure and health development and financing in EA”, the statement said, adding that the meetings will also discuss ways to attain the objectives of the EAC Development Strategy. The retreat is expected to give impetus to infrastructure and health development by way of harnesing political support for regional flagship projects, funding committments and public-private arrangements. Railways, ports and inland waterways will be key priority projects to be discussed during the coming event as will be ways to seek finance to decongest the cities and improve ports logistics. Todate, three high level retreats on infrastructure development for the EAC bloc have been held so far; in 2008, 2012 and 2014. Through the retreats, several projects in transport, energy, civil aviation have been identified for...

Washington is expected to start public hearings on the benefits of the duty-free window deal with Africa today, an event being followed keenly in Nairobi. Trade principal secretary Chris Kiptoo says the country is following the developments where the Donald Trump administration starts reviewing the African Growth Opportunity Act (Agoa) that earns Kenya billions. African countries have been gripped by anxiety following the election of Mr Trump last year. He announced he will review all the international trade deals. “We are keenly monitoring the development in the US when it starts discussion on Agoa on January 23,” said Dr Kiptoo. Mr Trump has openly declared that he will not support international trade deals including the Trans-Pacific Partnership Agreement (TPP) and North American Free Trade Agreement (Nafta). Last year, the Secondary Materials and Recycled Textiles Association (Smart), an American trade body petitioned US trade authorities to strike off Kenya, Rwanda, Uganda and Tanzania from selling duty-free textile and apparel exports in the US for rejecting second-hand imports from the country. About 80 per cent of textile and apparel produced at the Export Promotion Zones (EPZs) are sold under Agoa— a trade pact, which allows US buyers to import goods from a number of sub-Saharan African countries without paying taxes. Kenya, is however, yet to fully exploit its share of the US market under the Agoa plan as it currently exports 10 products out of a list of many issued by America. Last year, the country used a paltry eight per cent...