Widow Ahatho Turuga lost 20 of her goats to drought early last year, but the shopkeeper is planning to reinvest in her herd once she has saved enough money. "I think I will start with four goats and see how it goes," she said, rearranging soap on the upper shelf of her shop in Loglogo, a few kilometers from Marsabit town. She recalled how frequent droughts had left her on the edge of desperation, struggling to care for six of her own children and four others she adopted after their mother died. But Turuga is finding it easier to cope since taking part in a rural entrepreneurship program run by The BOMA Project, a nonprofit helping women in Kenya's dry northern areas beat extreme poverty and adapt to climate change. The U.S. and Kenya-based organization provides two years of business and life-skills training, as well as mentorship. Groups of three women are each given a startup grant of 20,000 Kenyan shillings ($194.55) and a progress grant of 10,000 shillings to set up a business. After graduating, they carry on operating their businesses — mainly small shops selling groceries and household goods — either together or on their own. The women also club together in savings groups of at least 15 people, who put away anything from 400 shillings a month each, and make loans to members at an interest rate of 5 to 10 percent. Habibo Osman, a mother of five who was in the same group as Turuga, has...

EAC partner states have been accused of being slow in disbursing their financial commitments, which calls for tough measures regarding financing activities of the Community. “The reality of the matter is that partner states are slow in disbursing their commitments, as at the end of December (2017) only 40% had been disbursed, this calls for serious prioritising of the available resources and ensure critical activities are implemented,” the Secretary General of the East African Community (EAC), Amb. Liberat Mfumukeko said. He emphasised the need for staff of the Community to avoid wastage at all costs saying “tough times call for tough measures.” One of the cost cutting measures he cited is that meetings should start on Tuesdays and should not last for more than four days. “This summit will be addressing the issue of alternative financing mechanisms and I can assure you that a lasting solution will be found,” the Secretary General said in his first address to staff, according to the statement posted  yesterday (Wednesday). In his address highlighting achievements for 2017 and what still needs to be done Mfumukeko said, “I must admit that 2017 was a challenging year for all of us at EAC, and especially the first and second quarters of financial year 2017/18 where we experienced serious financial challenges.” He thanked the staff for bearing and coping with these challenges. He said he was touched that staff could use their own resources to travel and support EAC activities for reimbursement when funds become available. “This...

Clearing agents and cargo transporters have asked the Kenya Railways Corporation to provide 30 days of free storage at the Nairobi inland container depot (ICD). The request is part of a raft of measures being proposed by the Kenya International Freight and Warehousing Association (KIFWA) to resolve the logistical hiccups that have seen Kenya Railways stall the use of the cargo service on the standard gauge railway. Launched in December, the SGR cargo service has been slow to take off over lack of cargo to transport as sector players looked for better customer service. KIFWA has also asked for assurances on the specific timeliness by the Kenya Ports Authority and the Kenya Revenue Authority on how long it will take from loading into the wagon, arrival and clearance to minimize operating costs. “The directors resolve to be given at least 30 days storage free days at ICD to clear & evacuate their cargo & be assured of similar benefits as the ones they have been enjoying at Mombasa’s container freight stations (CFS),” KIFWA Chairman William Ojonyo said. KIFWA had invited representatives from KRA and KPA, who skipped the meeting seeking to get a working solution. Mr Ojonyo said that the four days free storage time given at the SGR terminal may not be enough and could lead to higher demurrage fees due to inefficiency in clearing procedures at the ICD. The government plans to move 40 percent of cargo from the port of Mombasa using the SGR. A 20-foot container...

The East African Legislative Assembly (EALA) is scheduled to resume business next week by holding its Plenary Session in Kampala, Uganda. The Plenary from January 22nd 2018, through to February 9, 2018, is the second meeting of the First Session of the 4th Assembly. President Yoweri Museveni who is the chair of the Summit of EAC Heads of State, is expected to deliver the State of EAC Address to the Assembly. The State of EAC Address is an annual address delivered by the sitting EAC Summit Chair and it sets the momentum and impetus for the integration process by reflecting on general policies that relate to the Community's progress while outlining the strategic challenges which require attention. The assembly which is to be presided by the new Speaker Martin Ngoga shall during the three-week period further discuss several legislative business including: Debate three key Bills; the EAC Oaths Bill, 2017, the EAC Statistics Bureau Bill, 2017 and the EAC Monetary Institute Bill, 2017.  Source: All Africa

Economic growth in Africa picked up steam last year and is set to accelerate strongly in 2018, but “massive investments” are needed in infrastructure, the African Development Bank (ADB) said Wednesday. Growth in Africa rose from 2.2 percent in 2016 to 3.6 percent in 2017 and is likely to rise to 4.1 percent in 2018 and 2019, the ADB said in its annual report, African Economic Outlook. “Overall, the recovery in growth has been faster than envisaged, especially among non-resource–intensive economies, underscoring Africa’s resilience,” it said. “The recovery in growth could mark a turning point in net commodity-exporting countries,” it added. Last year’s spurt has a range of explanations, including a recovery in prices for oil, which helped petroleum exporter Nigeria, Africa’s most populous country. East Africa is the most dynamic region in terms of growth: 4.9 percent in 2016, which rose to 5.6 percent in 2017, and to a projected 5.9 percent in 2018 and 6.1 percent in 2019. However, across the continent job creation did not rise in lockstep with growth, lagging by 1.4 percent. Woman and young people, aged 15-25, are those who have been most affected by the slow growth in employment. To generate jobs for the 12 million young people entering its workforce each year, Africa must take a fast-track to industrialisation, the ADB said. But key obstacles in infrastructure remain, including energy, water and transport, as well as health, education, security and administrative capacity. “The continent’s infrastructure needs amount to $130–170 billion (106-139 billion...

Investment in Africa is big business and the list of major corporations funding projects across the continent is rapidly growing. From the Chinese construction and engineering firms pushing infrastructural development to the biggest names in technology driving innovation, there’s serious money to be made for everyone involved. Aside from the African partners getting their cut from these lucrative deals, this investment boom is powering rapid development across Africa. the continent is rising fast and the short-term gains can be seen on a daily basis. As the World Economic Forum puts it: “2018 is going to be a good year for sub Saharan Africa’s economies” with a growth forecast of 3.2%, up from 2.4% in 2017. However, rapid development comes with compromises – ones that many are too busy counting the quick cash to see, or perhaps care about. At the 2018 World Economic Forum Annual Meeting, Chief Executive Officer for Brand South Africa, Kingsley Makhubela, highlighted the long-term issue of Africa becoming overreliant on external trade, rather than focusing on developing intra-African trade: “This is especially dangerous for Africa given its growing integration with the global economy in recent years. In order to mitigate this, Africa must take steps to secure its own share of global economic growth.” The threat is very real, too. Developed nations are enjoying the African boom, making the most of the continent’s investment opportunities, trade dependencies, innovations and loan interest payments – not to mention the natural resources and professional talent that escapes along the way. The problem is there are gaping holes in this...

Kenya and South Africa, the undisputed economic powerhouses of East and Southern Africa, respectively, are the hubs of trade, investment and financial services in their regions. While Kenya is the largest and most dynamic economy in the East African Community (EAC), South Africa is the engine of the South African Development Community (SADC). This context underpins the importance of President Uhuru Kenyatta’s recent visit to South Africa. Even though the visit was more focused on cooperation between the respective ruling parties — Kenya’s Jubilee and South Africa’s African National Congress (ANC) — President Kenyatta and his South African counterpart Jacob Zuma had an opportunity to discuss how to strengthen bilateral relations. DEVELOPMENT Vice-President Cyril Ramaphosa, the new ANC leader, was the pointman for party affairs but his likelihood of succeeding President Zuma makes him a key figure in future development cooperation. Among the strategic opportunities emerging from the visit was talk of manufacturing, one of President Kenyatta’s “Big 4” pillars of economic development. Both countries rely on manufacturing to expand capacity for economic growth and reduce their frighteningly rising youth unemployment problem. South Africa, the second-largest and -most industrialised economy in Africa, after Nigeria, has been more successful than Kenya in developing a vibrant manufacturing sector. Its massive economy, with an output of $295 billion by the latest World Bank statistics, is substantially driven by manufacturing — which contributes over 30 per cent to gross domestic product. Kenya’s contributes just over 10 per cent to a GDP of $78 billion...

Truck drivers transporting heavy loads along the Northern Corridor want other motorists to adhere to traffic rules governing moving of such special cargo to reduce accidents. They are also demanding better pay for challenges of navigation and routing. Drivers of smaller cars are notorious for overlapping, sometimes blocking them, the truckers said. “These motorists don’t have courtesy because they can see the load is wide but they get into the way of the escort vehicles, forcing us to stop,” said John Njoroge, who has been on the road since December 13. He is transporting a beer tank from Mombasa to Mbarara, Uganda which was offloaded at the port on October 19 last year but could not leave Mombasa due to political uncertainty. Mr Ngugi had stopped in Eldoret and expects to arrive at Mbarara in mid February. Heavy Commercial Vehicles Union secretary John Muite said the drivers go through many hardships. “Transporters and importers of such cargo should agree on how better to remunerate our drivers,” Mr Muite said.  Because they avoid barriers like billboards and overpasses and underpasses, the journey is longer. Between Mombasa and Nairobi, they cover 650km instead of the normal 500km. Source:Business Daily

The Kenya Maritime Authority and the ports manager KPA have joined hands to ensure exporters comply with container weight limit to secure the Mombasa port from blacklisting under the new international standards. The maritime authority has approved 67 firms to weigh containers and so far licensed 20. The International Maritime Organisation amended the Safety of Life at Sea (Solas) chapter on cargo information that came into force on July 1 2016 requiring exporters to adhere to weight limit for containers. KMA acting director general Cosmas Cherop said so far the regulator has licensed 20 firms to weigh containers. Misdeclared cargo weights within the supply chain damaged port terminals, railways, and roads due to excessive weight and uneven weight distribution on ships which may lead to damage of the ship. The IMO regulations place the responsibility of providing the verified gross mass of a container on the shipper. The shipper may outsource the weighing and packing of containers. The maximum weight limit was adopted after accidents relating to overweight containers, resulting to poor balancing of the vessels which may lead to a vessel “listing”, a shipping term meaning leaning. Listing may result in financial loss and environmental disaster. The KMA has so far approved 67 firms to provide the services, most them manufacturers. At least 14 of them are third party operators who weigh the containers and certify that they are of required weight. Some of the firms listed as third party providers of the service include SGS Kenya, Bureau Veristas...

Several businesses in the East African Community region stand a chance to win awards at the inaugural East African Business Council (EABC), inaugural Business Excellence Awards. EABC is an apex body of business associations of the private sector and corporates from the six East African Community partner states. The awards were organised as part of events marking its 20th anniversary. November 2017 marked 20 years since the establishment of the EABC and its Secretariat has outlined a number of activities and events. According to the EABC Executive Director, Lilian Awinja, the awards are aimed at showcasing and celebrating businesses that have achieved excellence in various aspects of their operations across East Africa, keeping with the spirit of the EAC integration. She said: “The business sector is a driving force in East Africa’s economy through the creation of jobs and opportunities that enable citizens to earn a living and thrive as well as being a major player in the integration process.” “The idea to host these awards was thus born out of the need for a platform upon which the Council will honour businesses that have achieved success through their vision, operations and business ethics.” Award categories The inaugural EABC Business Excellence Awards will be organised across three categories, the first will recognize one company as Overall East African Regional Company. The second category will recognise business that excelled in cross cutting categories, namely manufacturing, services, SME, woman owned enterprises, green economy, innovation and corporate social responsibility. The third category will...