News Categories: Kenya News

Manufacturers agree to enhance competitiveness in East Africa

Kenya’s umbrella manufacturers body has signed an agreement with a regional body formed to help East African states speed up integration, create better business environment and enhance the sector’s competitiveness in the region. The Kenya Association of Manufacturers (KAM) and TradeMark Africa (TMA) said in Nairobi the two-year agreement will see an extension of a financial grant to KAM for supporting its advocacy work in the area of non tariff barriers, standards and counterfeits. "We are looking into implementing advocacy campaigns, especially related to non-tariff barriers, trade in counterfeits, anomalies in the common external tarrif (CET) and access to trade and market information," said TMA Kenya Country Director Chris Kiptoo. Kiptoo said the partnership aims to support KAM’s policy and advocacy work as well as engagement with the relevant authorities in a bid to address the challenges facing the industry in the region. He pointed out that the first phase of the project focused on building and evidence base for advocacy in the key priority areas identified by KAM, which include tax reforms in Kenya, cost of quality compliance, domestic non-tariff barriers affecting industry in Kenya, constitutional issues affecting business, overlapping regulatory roles and the severity of counterfeits. "TMA’s keenness to support KAM has carved out a productive space for advocacy and engagement with the necessary sections of the government," said KAM CEO Phyllis Wakiaga. "Our manufacturing sector has remained stagnant at 11 percent of GDP over the past ten years. As a result, the number of formal jobs in...

Remarks by British high commissioner on 10thanniversary of Fairtrade Africa

Honorable British High Commissioner to Kenya, Dr Christian Turner gave a speech at Strathmore University on 10th Anniversary of Fairtrade Africa. The speech has been provided below – “Distinguished guests, ladies and gentlemen… I am pleased to join you on this day as we celebrate the achievements of Fairtrade Africa over the last ten years. Fairtrade Africa plays a crucial role in helping to improve the lives of poor people in a sustainable way, by ensuring farmers receive fair prices for their products and workers receive better wages to help them support their families. My core proposition today is that growth must be sustainable and inclusive. Fairtrade Africa is a model of that. First, some background on the UK angle to this: the UK is the largest contributor to the Fairtrade movement, having contributed around £18m (approximately Ksh 2.9 billion) over 7 years through DFID’s economic development programme, and working with Fairtrade since the outset to build markets for the poor and the marginalised. Fairtrade in turn has reached over 7m smallholders, workers and businesses, 2/3 of which were in Africa; of which 25% were women. We are also proud that so many top UK retailers have bought into the model – Marks and Spencer, ASDA, Sainsbury’s – to name but a few… It speaks to the success of the brand that almost all major UK retail outlets now have Fairtrade products on their shelves. Here in Kenya, Fairtrade Africa has played an important role in protecting workers from exploitation and...

President strikes multi-billion investment deals with  US firms

Kenya has secured commitments amounting to billions of shillings from American companies to increase power production and finance infrastructure projects. Some of these projects have already been initiated. President Uhuru Kenyatta said the commitments were secured during a morning meeting with the American companies under the umbrella Business Council for International Understanding (BCIU). He said Africa was the continent in focus for investors and Kenya must use its potential in clean energy and infrastructure to grow its economy. One of the US companies committed to invest an estimated Sh400 billion ($4 billion) in Kenya for power generation. “One company in particular doubled its commitment to invest in solar power in Kenya over a period of time, developing up to about 2,000 megawatts of power at a cost of approximately $4 billion. AN INVESTMENT RESORT
The BCIU is a group of companies that facilitates mutually-beneficial, person-to-person relations between business and government leaders worldwide. They facilitate financial investment and advise governments on how to utilise their potential to spur economic development. Industrialisation Cabinet Secretary Aden Mohammed, who attended the meeting at the high-end Waldorf-Astoria Hotel in New York, said Kenya was marketing herself as the destination for investment and trade on the continent. “This was a gathering of business and government leaders. It was an interactive session where the companies asked questions on what has been the spectrum of doing business with Kenya,” he said. He said the government explained steps it has taken to aid investment in Kenya including the enactment of...

EAC-India seek to strengthen cooperation

Relations between the East African Community (EAC) and India are set to get better especially in the areas of trade, cultural exchange and development cooperation, following a new commitment. The India High Commissioner to Tanzania and representative to the EAC, Sandeep Arya, said his country was keen on strengthening trade and cultural ties with the five-member regional bloc which date back several centuries. Arya was speaking after presenting his credentials to the EAC Secretary General, Amb. Richard Sezibera, at the EAC Secretariat in Arusha, on Tuesday. In a statement, the Indian envoy said his country already had bilateral projects in most of the EAC Partner States particularly in health and agriculture, adding that they wanted to partner with the EAC to boost trade volumes and promote industrial growth in East Africa. Arya promised to work closely with the Confederation of Indian Industries and the Indian Exim Bank in these initiatives, noting that these partnerships should for a start be between these two institutions and the East African Development Bank (EADB) and the East African Business Council (EABC). Dr Sezibera thanked the vast South Asian country for its support to the Partner States, singling out the scholarships granted to students from the Partner States to study in India. He also cited the support granted to the Community by India in the preparation of the East African Railways Master Plan the implementation of which he said would revolutionise the transport sector in the region. India's Exim Bank has extended Lines of Credit...

Two agencies partner to push trade agenda in Kenya

TradeMark Africa has signed a deal with Kenya Trade Network Agency to facilitate the trade agenda in Kenya. The deal will see the two organizations collaborate in setting up an online trade information platform that seeks to map out and harmonize trade networks across East Africa. Trademark East Africa has been providing financial and technical assistance to conduct various single window projects across East Africa. The deal between TradeMark Africa and Kenya Trade Network Agency seeks to address areas such as minimizing time taken to complete standard import and export processes across the borders, increase user-compliance with trade procedures, and decrease the time it takes to complete documentation. This is aimed at enhancing trade facilitation under the Single Window environment. TradeMark Africa has also signed the second phase of its partnership with The Kenya Association of Manufacturers to create a better business environment for manufacturers to enhance the sector’s competitiveness in the region . The two will collaborate in implementing advocacy campaigns on Non-Tariff Barriers, trade in counterfeits as well as access to trade and market information. Source: KBC

TMA Partners with KENTRADE to improve trade facilitation in Kenya

The partnership will improve and ease trade across East Africa thus contributing to the growth on the Kenyan economy Nairobi, 24 September 2015- TradeMark Africa has signed a memorandum of understanding (MoU) with the State Corporation, Kenya Trade Network Agency (KENTRADE) in the implementation of key areas of mutual strategic interest around the trade facilitation agenda in Kenya. [caption id="attachment_9480" align="alignleft" width="420"] From left- KENTRADE CEO, Amos Wangora; KENTRADE Chairman, Gen. Joseph Kibwana; TMA Kenya Country Director, Dr. Chris Kiptoo, TMA ICT Director, Alban Odhiambo[/caption] The partnership will see the two organisations collaborate in setting up an online trade Information services platform that will be able to map out trade networks and work flows as well as standardization and harmonization of trade networks and processes of participating agencies in the single window environment across East Africa Speaking during the signing, Dr. Chris Kiptoo, TMA Kenya Country Director said that the new partnership will be a great milestone in trade facilitation in the Single Window environment. “This partnership will allow us to aptly identify and prioritize agencies and organizations that can be supported on the Single Window environment and establish a joint selection criteria for system integration to facilitate a smooth transition in trade in the country.” TMA has been providing financial and technical assistance to conduct various single window projects across East Africa. They have empowered various public agencies across the EAC in developing electronic single window systems which have enabled cross-border traders to access, apply for and submit regulatory...

Taxman enhances electronic goods control to boost revenue

The Kenya Revenue Authority aims to fully automate its goods clearance and cargo tracking systems within two years as part of a strategy to seal revenue loopholes. The country losses substantial revenue through suspected under-declaration of the value of exports or theft of cargo at a time when the taxman is under pressure to meet collection targets. KRA targets a 100 per cent coverage of goods under electronic control by 2017/2018 from a current baseline of 23 per cent, a strategic plan released last Friday by commissioner-general John Njiraini showed. “We are keen on enabling business by leveraging technology to achieve full electronic service leading to enhanced operational efficiency and high customer satisfaction,” Mr Njiraini said. Kenya introduced the Electronic Cargo Tracking System (ECTS) in July 2009 as it intensified its purge against dumping of transit goods in the local market. The system was particularly set to monitor movement of goods between Mombasa port and Busia and Malaba border points through which goods enter the landlocked Great Lakes region. The agency later brought on board export goods and all others under customs control as it broadened its scope to fight tax evasion. All importers, exporters, clearing agents and transporters conveying goods under customs control were ordered to install the electronic tracking equipment, phasing out tamper-prone seals. Upon the installation of the ECTS equipment, the then cumbersome practices of customs physical escort were phased out and the annual transit goods licence fees waived. Uganda in February said it would extend its...

What the new beginning with Kenya International freight warehousing association means for trade in Kenya

The Memorandum of Understanding between Kenya Trade Network Agency (KenTrade) and Kenya International Freight Warehousing Association (KIFWA) signed in Nairobi on Monday this week is a  significant milestone in the Kenya’s trade logistic industry and indeed the entire trade facilitation movement in this strategic region of East Africa trading block.  With the support of our development partner, World Bank Group, KenTrade and KIFWA are taking deliberate steps to formalise their engagement and relationship that have evolved with the automation of Kenya trade logistics sector. The MoU with KIFWA is the first among many planned by KenTrade when key industry actors is geared at advancing the Government’s transformative agenda on regional trade. We value KIFWA and its national membership as important player in the ongoing reforms of Kenyan ports and cross border trade facilitation. Indeed Clearing and Forwarding Agents are our most significant stakeholders arguably because they are the crucial link between the Importers/Exporters on one hand and Permit Issuance Agencies on the other.  KIFWA therefore has a greater stake in the Kenya’s Single Window System(Kenya TradeNet System) because its aforementioned members bears the blame from the Importer /exporter and also incur personal lose not mentioning reputation damage if cargo is not cleared on time or lost because of inefficiencies.  The purpose of the MoU that KenTrade signed with KIFWA is to enable the KenTrade and KIFWA to enter into a non-exclusive, non-legally binding, collaborative relationship. This relationship is aimed at furthering the common interests of the two Parties in the...

India EAC relations to be strengthened

ARUSHA, Tanzania, 22 September 2015 / PRN Africa / — Relations between India and the East African Community are set to be revitalized especially in the areas of trade, cultural exchange and development cooperation. India's High Commissioner to Tanzania and Representative to the EAC, Mr. Sandeep Arya, said his country was keen on strengthening trade and cultural ties with the EAC which date back several centuries. Mr. Arya said India already had bilateral projects in most of the EAC Partner States particularly health and agriculture, adding that they wanted to partner with the EAC to boost trade volumes and promoting industrial growth in East Africa. Mr. Arya said he would work closely with the Confederation of Indian Industries and the Indian Exim Bank in these initiatives, noting that these partnerships should for a start be between these two institutions and the East African Development Bank and the East African Business Council. Mr. Arya was speaking after presenting his credentials to the EAC Secretary General, Amb. Dr. Richard Sezibera, at the EAC Secretariat in Arusha, Tanzania. Dr. Sezibera thanked India for its support to the Partner States singling out the scholarships granted to students from the Partner States to study in India. Dr. Sezibera also cited the support granted to the Community by India in the preparation of the East African Railways Master Plan the implementation of which he said would revolutionize the transport sector in the region. He disclosed that that one of the challenges faced by the EAC in...

Kenya imports milk from Uganda to meet shortfall

It is now emerging that Kenya imports milk from Uganda to meet its shortfall. Statistics show that Kenya bought milk worth Sh520 million from Uganda last year. On its part, Kenya sold dairy products valued at Sh290 million to Uganda during the period. The milk imported by Kenyan firms is mainly in powder form and is meant to safeguard the processors' market share during the dry season when local supplies are low. Data from the East and Southern African Dairy Association shows that the milk deficit is caused by high consumption among Kenyans. KENYANS MILK-THIRST Ugandans, the statistics show, do not consume as much milk products as their Kenyan counterparts. Local processors are also taking advantage of the East African trade pacts to sell their products to the regional markets, leaving local consumers with a shortfall. The processors last year sold milk products worth Sh821 million to regional markets. World Health Organisation's statistics indicate that on average Kenyans drink 110 litres of milk per person yearly. Acute lack of milk during dry spells has created an untapped market for powdered milk. This is where Uganda's Pearl Dairy, the largest powdered milk maker in East Africa, is cashing in on. The company's chief executive Mr Atul Chaturvedi told Smart Company that the increasing purchasing power among Kenyans has created a ready market for quality milk products. "We urge people to continue consuming processed milk that is free from adulteration and harmful bacteria associated with raw milk," he said. Mr Chatruvedi said...