American roasters are expected to raise coffee purchases from Kenya by a quarter to Sh3.5 billion annually after the country showcased its produce in the ongoing symposium in Seattle, US. Coffee Directorate made a pitch for Kenya’s specialty coffee during the exhibition to have the US, which pays a premium price for the commodity, increase its uptake 25 per cent. America buys seven per cent of Kenya’s annual export of 46,000 metric tonnes but it pays highly compared to the other top buyers. US buyers currently pay Sh500 a kilogramme compared to Germany that is the leading importer but pays Sh300 for the same quantity, according to the directorate. “We have pushed for increased sale from the American roasters and they have already given an undertaking to increase the sales from what they currently buy,” said Agriculture Cabinet secretary Willy Bett. During the financial year 2015/2016, American roasters paid Sh30,000 per 50 kilogramme bag compared with Sh25,000 that Germany offered and Sh24,000 that Belgium gave for the same quantity. The Coffee Directorate is exhibiting Kenya’s specialty coffee at the annual global coffee meeting that brings together key stakeholders in the sector. Kenya was chosen as a portrait country in this year’s exhibition in Seattle making it the focus of the activities at the coffee trade fair that started on April 19. The Specialty Coffee Association of America Symposium and Exhibition, organised by the Specialty Coffee Association of America is one of the single largest market avenues where coffee producers meet...

Intra-Africa trade took 40 per cent of the exports worth Sh234.1 billion indicating a need to ease movement of goods and services. The Economic Survey 2017 shows the East African Community that brings together Kenya, Uganda, Tanzania, Rwanda and Burundi continued to provide Kenya with a ready market that accounted for 51.9 per cent of the intra-Africa trade. The bloc, which is pursuing integration at economic and political levels, has also provided a ready market for Kenyan investments in manufacturing, banking and provision of professional services. Somalia that is slowly returning to normalcy provided Kenya with the largest gains as export volumes of fresh and processed products doubled. Exports in 2016 stood at Sh17.9 billion, an indication that a stable Mogadishu means good business for Kenya. Uganda remained the biggest market for Kenyan goods where Sh62 billion worth was sold with Rwanda receiving goods valued at Sh17.5 billion, Burundi Sh7.2 billion and Tanzania recorded Sh34.8 billion up from 2015 Sh33.7 billion. European Union came second accounting for 24 per cent of the exports worth Sh141.5 billion while the US imported goods worth Sh52.9 billion. Source: Business Daily

East African Community Secretariat; Nairobi, Kenya; 12 April 2017: The Secretary General of the East African Community (EAC), Amb. Liberat Mfumukeko paid a courtesy call on the Trademark East Africa (TMA) CEO, Mr. Frank Matsaert on Tuesday, 11th April, 2017, at the Trade Mark East Africa Headquarters in Nairobi, Kenya. The two officials had a lengthy discussion on a number of issues including the support to the East African Community by TMA and the importance of Partnership between the two parties. The Secretary General briefed Mr. Frank Matsaert on the reforms being undertaken at the EAC and that EAC was now ISO certified. He disclosed to the TMA CEO that the impact of reforms had led to cost reduction in the way EAC does business and emphasized that the reform agenda will continue to ensure efficiency in the use of available resources. On management of different projects at the EAC Secretariat, Amb. Mfumukeko informed Mr. Matsaert that the Projects Coordination Unit will be fully functional by July 2017. On his part, Mr. Frank Matsaert emphasized that TMA takes EAC partnership seriously, and congratulated the EAC for passing the EU Fiduciary Risk Assessment, which TMA supported. Mr. Matsaert informed the Secretary General that a commitment had been made to support the initial phase of operationalization of the Projects Coordination Unit at the EAC Secretariat. 'Already a consultant had been recruited by TMA to help in the finalization of the design of the unit'. The report will be finalized by end of...

Iringa small scale farmers have asked the government and the East African Community (EAC) Secretariat to eliminate both the traditional and new challenges related to non-tariff barriers (NTBs), impact of climate change and low participation of farmers in the EAC agritrade policy making process. At a recent event held to review the region's agri-trade and business regime, the stakeholders found that majority of small farmers weren't aware of the requirements for undertaking agri-trade and business within the EAC and other regional economic blocs. The deliberations which were based on experiences of Iringa small-scale farmers pointed out challenges associated with systems which include lack of capacity on the part of small scale farmers to negotiate favorable terms. As a result, the Iringa Civil Society Organization (ICISO) supported by the Foundation for Civil Society (FCS) under the EAC CSO integration project in collaboration with Trademark East Africa (TMA) is working to establish how the small-scale farmers could effectively engage in, and benefit from, the region's agri-trade and business regime. A statement issued by the ICISO Executive Secretary, Mr. Raphael Mtitu noted that Iringa SSFs were failing to effectively engage and benefit from the EAC regional development cooperation and integration due to lack of information and facilitation on how to undertake trade and access markets within the bloc. Source: All Africa

The taxman recorded a revenue growth of 300 per cent at the Busia-Uganda border over the past three years and is looking to net more with establishment of the one stop border post. KRA Western Kenya coordinator Kevin Safari said the post, opened in June 2016, had cut transit costs and delays, fueling traders' confidence in the East Africa's busiest corridor. The one stop border post (OSBP), he said had cut down clearance procedures from 16 to about "three or four" clearing congestion that previously saw a fleet of trucks line up, some for a week, as they waited for clearance. "An average of 250 trucks pass through this border every day and the OSBP has reduced clearance time from two or three days to between 20 to 30 minutes. This means that transit time is greatly reduced and more traders can use the corridor efficiently," he said. A trader exporting goods to Uganda for example only needs to present the exit note and the cargo manifest to the customs desk for verification on the Ugandan side of the border. The desk has officers from Kenya and Uganda sitting side by side. The Kenyan official clears the goods for export and hands over to the Ugandan counterpart to clear them for import, a process that takes about 15 minutes. Previously, traders in the region were slowed by tedious clearance procedures at the two customs points, which required inspection at both sides of the border. This process created delays and congestion...

The volume of Kenyan apparel shipped to the US under the African Growth and Opportunity Act (Agoa) declined by 12.1 per cent last year even as uncertainty clouds the 17-year-old preferential pact under President Donald Trump. The 2017 Economic Survey shows apparel volumes exported declined to 74.4 million pieces in 2016 even as earnings increased to Ksh35.2 billion ($352 million) on the back of a weak shilling. Under Agoa — a trade pact allowing US buyers to import goods from a number of sub-Saharan African countries without paying duty or facing quota restriction — the US has become Kenya’s largest apparel export destination. Former US President Barack Obama extended Agoa to September 2025 allowing local entrepreneurs more time to benefit from the preferential trade pact. There have, however, been fears that President Trump could either use executive orders to cut short that period or refuse to renew it upon expiry. Textiles and apparel account for about 80 per cent of Kenya’s total exports to the US under the pact. The Economic Survey shows direct employment generated by Agoa increased by 2.5 per cent to 42,645 people in 2016 while the number of enterprises operating at the export processing zones (EPZs) increased to 91 from the 89 recorded in 2015. Total sales by the enterprises in the 65 gazetted EPZs increased by 5.8 per cent to Ksh68.7 billion ($687 million) in 2016 from the Ksh64.8 billion ($648 million) recorded in the year before. The report says exports from the EPZs increased...

Kenya and Jordan have agreed to set up a joint business lobby in a bid to boost bilateral ties. The business council will have an immediate task of generating and exchanging economic information. It is also expected to conduct feasibility studies on trade and arrange for joint business forums. The initiative was agreed on during the closing ceremony of the Jordanian-Kenyan trade committee’s first session, headed by Jordanian Trade Minister Yarub Qudah and his Kenyan counterpart Adan Mohamed. Only recently, Jordan opened an embassy in Kenya. A committee formed to follow up on King Abdullah’s visit to Kenya last year has called for deliberate efforts to increase bilateral trade, “which is still insufficient despite numerous opportunities available”. The committee also stressed the importance of enhancing bilateral cooperation in various fields and building on the outcomes of King Abdullah’s visit to Kenya last year. The committee’s discussions covered cooperation in trade, investment and industry, in addition to issues related to small and medium sized enterprises. Source: Business Daily

The Kenya Revenue Authority (KRA) says it has tripled custom revenue collections in its seven border points after it began operating one-stop border posts in June 2016. The move, which put together bureaucrats involved in cross-border clearance processes under one roof, has also cut cargo clearance time from the previous three days to just under 1 hour, the agency said. KRA Western Regional Coordinator Kevin Safari said the simplified procedures have attracted traders into the cross order business as well as reduced smuggling hence the increased revenues. “With a faster and a simpler process, traders have had no incentive to use illegal channels to bring in goods into the country as they are assured of a faster and a more transparent process,” Mr Safari said during a tour at the Busia border point. “We have also reduced the time they would take to cross the border meaning they can trade more volumes which is also a revenue boost for us.” The Busia OSPB which is major entry and exit point between Kenya and Uganda has a one-stop clearance point for cargo and people, with various government agencies sitting in one office to fasten the clearance procedures. Kenya has 35 gazetted entry and exit points with four more being proposed in the Western border with Uganda. Source: Business Daily

A United Nations think-tank has warned the East African Community against entering into an Economic Partnership Agreement with the European Union arguing that it will neither spur economic growth nor bring wealth to the region's citizens. The United Nations Economic Commission for Africa (UNECA) says in a report that if the EPA is signed, local industries will struggle to withstand competitive pressures from EU firms, while the region will be stuck in its position as a low value-added commodity exporter. "If the EAC-EU EPA is fully implemented, the region risks losing trading opportunities with other partners, industrial output, welfare and GDP," the 45-page report seen by The EastAfrican says. The report titled Analysis of the Impact of the EAC-EU Economic Partnership Agreement on the EAC Economies is yet to be made public and is expected to be discussed by the Council of Ministers in the "days to come," according to sources at the EAC Secretariat. But according to David Luke, co-ordinator of the African Trade Policy Centre at UNECA, the deal with Europe will be calamitous unless EAC countries are able to clearly define what their infant industries are, as well as identify sub-sectors they intend to protect. "While the EPA purportedly intends to respect regional integration programmes, they are adding to the complexity of the task. Additional burdens are created through provisions that complicate or contradict the agreements African states have with each other or are about to make," Mr Luke said. Rwanda's Minister of Trade, Industry and EAC...

The Export Promotion Council has partnered with the International Trade Centre and Barclays Bank to empower women in the textile and apparel sector. This is under the “Empowering Women in Trade in East Africa Project 2016-17” being implemented by ITC and funded by Trade Mark East Africa. The projects aims at enabling women owned Small and Medium-sized enterprises working in selected sectors in East Africa to trade, by increasing the value of their international business transactions. The deal involves capacity building training to enable the women meet among others, international quality standards, to enable their products reach foreign markets. “We want to the business women understand the textile and apparel buyer requirements and how to manufacture apparel to meet international standards,” EPC newly appointed CEO Peter Biwott said in a statement yesterday. Source: News Summed Up