Local clothing manufacturers plan to have a "mega sale" of their products this week in Nairobi. The event has been dubbed the first-ever super sale of local clothing brands in the country. Going under the hashtag #BuyKenyaSuperSale on Twitter, the sale will run for three days starting Wednesday at the Kenyatta International Conference Centre, (KICC). Prices will range from Sh50 to Sh600. The sale has been organised by the Ministry of Industry, Trade and Cooperatives to promote local brands. According to State House Spokesman Manoah Esipisu, quality brand new clothes made in Kenya at its export processing zones (EPZ) under key designer labels will be up for sale at "low and affordable prices". “They are making them available to this market so that Kenyans can have a sense and feel of what it is that is being produced here and being worn in major cities in the world but which by the time Kenyans see it again it’s like its already been worn in other markets and coming back under the used clothes' category,” he said on Sunday. Biggest brands Industry, Trade and Cooperatives Cabinet Secretary Adan Mohammed says some of the world's biggest inner wear brands like Calvin Klein, Tommy Hilfiger & Victoria's Secrets are being made in Kenya. The Ministry of Trade is calling it the first super sale, which is expected to promote the local textile sector. The sector supports 179,000 jobs according to the government, out of which 22,000 are said to have been created over...

East African Community (EAC) countries have been told to go slow on the push to have a single currency for the region if they cannot fix the basics of trading in the region. In an interview with Daily Monitor, Mr Miguel Azevedo, the head of investment Banking for Africa at Citigroup, said the countries should focus on issues that boost East Africa as a trading bloc because a single currency may be hard to attain. He said: “Common currency goes with a few other needs, which means some common policies like similar budget policies, inflation levels and taxation among others. These things are harder to get. Just look at Europe. We have been working on the single currency for decades.” “What is doable and can create meaningful impact in the short term is creating a single market and I think it is getting there but governments need to be convinced that it is the way forward,” he added. In 2013, the EAC countries agreed on a timeline of about 10 years to have achieved a common currency. However, because the structures of the economies around the region differ, a common currency model has been noted to be risky. Mr Azevedo’s comments come with an understanding that for the EAC to be transformative, trade barriers and free movement of labour can help boost the region, especially the private sector to thrive. He notes that the focus on developing infrastructure within the region by Kenya, Uganda, Rwanda and South Sudan will somewhat...

Establishment of more export processing zones will promote value addition and boost use of local raw materials, the government has said. Industrialisation Cabinet Secretary Adan Mohamed said this helps create jobs for thousands of Kenyans while providing a viable technology transfer platform for local workers. Mr Mohamed spoke when he visited Kenya’s newest EPZ facility Hela Clothing in Athi River Township, which produces undergarments for export to America under the brand names Calvin Klein, Victoria Secrets among other licensed brands owned by US clothing conglomerate Phillips-Van Heusen Corporation (PVH Corp). The Sh600 million investment, which opened doors six months ago, has since exported lingerie and underwear worth Sh160 million. Mr Mohamed said EPZ facilities had helped Kenya sustain 45,000 jobs. In 2015 Sh8.4 billion was paid out as salaries with another Sh23.9 billion spent on purchasing raw materials and payment for services. “The manufacturing investments in the EPZ zones are worth Sh7.4 billion while exports under the Africa Opportunity Act worth Sh38 billion went to America. We are deliberately promoting the clothing and apparels sector to help us realise our core goals of having a skilled working population,” he said. Local retail chains The CS said Hela was also at liberty to form partnerships with local retail chains, whereby 20 per cent of their finished products will be sold at a subsidised rate that does not attract taxes under the Buy Kenyan, Build Kenya policy. “Hela’s target of exporting finished products worth Sh5 billion to US and Europe in 2017 is...

The Kenya Chinese Chamber of Commerce (KCCC), a trade lobby bringing together the Chinese business community operating in the East African nation, was launched on Saturday. Chairman of the East Africa Chinese Chamber of Commerce Han Jun said the new body is expected to unite and empower members to form a cohesive force among domestic and overseas Chinese. Han observed that Kenya has become a trading spot of the China-Africa cooperation. "Kenya has become an important direction and foothold in East Africa for China's belt and road initiative and national strategy of going abroad," he noted. With many Chinese projects including the ongoing construction of the Mombasa-Nairobi Standard Gauge Railway, the launch of the direct flight of China Southern to Kenya and the completion of the Thika Highway, a number of Chinese firms have been attracted to Kenya. "The chamber is expected to forge a new chapter between the Chinese people working in Kenya and further the modernization process," KCCC Chairman Zhuo Wu said. Zhuo said the new chamber will help create additional jobs for the local Kenyan people and contribute to Kenya's economic development programs. "We are going to continue strengthening the relationship between China and Kenya and also make contributions towards the economic and cultural development of the two countries," said Zhuo. Source: Global Times

Mombasa island’s transport infrastructure will never be the same again after completion of the Standard Gauge Railway in June. The railway will solve the city’s crazy traffic and congestion at Likoni Ferry, the only crossing into South Coast. The Government reckons that the completion of the SGR and a host of other link roads in the South Coast, will be a gamechanger. The Jubilee flagship project will be launched on June 1, 18 months ahead of schedule. The network connects Kenya’s largest sea port with the hinterland, a feat first achieved more than 100 years ago. The project cost just over Sh380 billion. Releasing details of the big launch, Transport Cabinet Secretary James Macharia said recently: “Our approach is to have an integrated transport system. We can’t do one aspect of it and leave out the rest. The sea ports, the airport and the railway must all be linked to ease accessibility.” He says the completion of the railway project will cut movement of goods from the port by road by an estimated 40 per cent. “We will move 22 million tonnes of cargo. Up from around 2 million tonnes every year,” Macharia says. Source: Standard media

In the Framework of the WCO- East African Community (EAC) CREATe project, funded by Sweden, the WCO provides technical assistance to the EAC Member States with the implementation of a regional Authorized Economic Operator (AEO) Programme. The goal of the project is to increase regionalization in the EAC region through facilitated trade for compliant traders. As part of the project, the WCO conducted a regional workshop from 6th - 10th March 2017 in Kampala, Uganda in order to support the region to review and update its Post Clearance Audit (PCA) Manual. PCA is a significant aspect for the successful implementation and administration of the regional AEO programme. During the workshop, 15 AEO and PCA experts from the five EAC member states, Burundi, Kenya, Uganda, Rwanda, and Tanzania participated in the workshop. The participants, with the support of a WCO PCA expert, have reviewed and updated the EAC PCA Regional Manual with audit programmes that are relevant for conducting audits in other operators within the supply chain and customs clearance processes. The manual was updated in order assure the alignment with WCO Guidelines and best practices. Here, eight operators were identified for the inclusion in the PCA Manual including Clearing Agents, Freight Forwarders, Transporters, Manufacturers, and Warehouse and storage operators. The experts alluded that the updates on the Manual not only assist in the delivery and management of AEO, but also increase customs compliance in the region as the operators play a crucial role in overall compliance improvement. The updates on...

A new trade facilitation tool was launched Tuesday in Kigali aimed at enhancing intra-Africa trade. The One-Stop Border Post (OSBP) Sourcebook is expected to help governments improve cross-border and intra-regional trade across Africa. The second edition of the sourcebook was supported by the Japan International Cooperation Agency (JICA), NEPAD, the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC), and the Intergovernmental Authority on Development (IGAD). The tool was launched at a regional workshop on the OSBP. The workshop runs up to March 16. Participants are exchanging views on further development of OSBPs in the continent. Participants were drawn from Djibouti, Eritrea, Ethiopia, Kenya, Sudan, Uganda, Rwanda, Tanzania and South Sudan. Dr Ibrahim Assane Mayaki, the NEPAD chief executive officer, said the trade facilitation tool seeks to promote a coordinated and integrated approach towards easing trade, movement of people, and consolidating security. He pointed out one-stop border posts are crucial in facilitating trade on the continent because clearance time reduces for both travellers and goods under one roof. Mayaki said: “It is envisaged that the OSBP project will help reduce the cost and time transporters take to ferry goods across borders.” Mayaki affirmed NEPAD’s commitment to support initiatives that promote trade on the continent. He also urged governments and key stakeholders to fully utilize the sourcebook to help them determine the best way to develop OSBPs in each region. Snowden Mmadi, an infrastructure expert at COMESA, said studies show that time wasted clearing at ports, borders, and...

African governments have been challenged to identify unique opportunities which they can pursue for growth of their ports instead of engaging in duplicate expansion projects that do not add value to their competitiveness and growth. Speaking during the African Ports Expansion Conference in Mombasa, leading world port and maritime sector managers said that many of the ports were duplicating what others were doing instead of trying to curve a niche for themselves so as to remain relevant. Tessa Major, a representative of the Port of Antwerp, Belgium, said by working together African countries can supplement each other instead acting as competitors so as to ensure growth in their maritime industry. She noted that many African countries had embarked on huge expansion projects of their ports so as to keep up with the increase in cargo volumes without focusing on future trends of the shipping industry. The conference brought together major stakeholders in the maritime industry including government officials, port authorities, contractors, technology providers, suppliers of port equipment and consultants. “When you look at majority of the expansion projects in African ports, most of them are similar. When we were expanding our Port in Antwerp, our biggest competitor was the port of Rotterdam in Netherlands but we realised the Port of Rotterdam deals more in liquid cargo,” said Tessa. The port of Antwerp is the second largest port in Europe after the Rotterdam port in the Netherlands which handles approximately 200 million tonnes of cargo in an year. Her remarks come...

Kenyans can expect lower costs and greater ease in doing business from massive synchronised transport projects in Mombasa, says Transport CS James Macharia. Calling them “game changers,” he cited construction of the second container terminal at the Mombasa port, ongoing construction of airport road and the standard gauge railway. “We cannot concentrate on the standard gauge railway alone. Projects have to be synchronised.We want to ensure as we launch the SGR on June 1, roads are also in place,” he said on Wednesday. Decongesting Mombasa Macharia toured the construction of the Sh6 billion airport road, the second container terminal, the SGR marshalling site, Mombasa West SGR terminal and the Dongo Kundu bypass. These are part of a three-phase plan to de-congest Mombasa by 2018. The airport road will ease both entry and exit to Mombasa. “One cannot talk about an airport without roads,” he said. The state has settled on compensation worth Sh1.7 billion, while the remaining Sh800 million will be paid as soon as beneficiaries are identified,” Macharia said. At the container terminal, Kenya Ports Authority MD Catherine Mturi-Wairi joined Macharia. Roads, sea ports, railway and airports are critical in improving business. More containers Macharia said two years ago, only 800,000 containers were handled at the terminal, which can now hold 1.6 billion. With completion of phase two, it is projected to hit 2.1 billion. Phase one of the terminal was constructed for Sh27 billion. Macharia said Kenya is ranked fourth in the world in handling cargo. Mturi said...

East African economies are seeking closer trade ties with countries outside the bloc as the volume of trade between the five-member states diminishes. A trade report by the  EAC Secretariat seen by The EastAfrican highlights a cocktail of factors stifling intra-EAC trade while undermining regional integration process. Non-tariff barriers (NTBs), poor infrastructure at the ports and on the main transport corridors, low value addition in the EAC region and lack of a common position on the implementation of duty exemption regimes by the member states have been identified as key factors that distort the Common External Tariff (CET). The other impediment is the lack of a comprehensive investment plan to promote EAC countries as a single investment destination. “In spite of the growth in trade and investment, the period 2015 exhibited continued sluggish performance that was witnessed in 2014. Trade in goods volumes as well as investment inflows remained flat or declined as a result of a number of challenges,” reads the report. The report dated August 2016 shows that trade among the EAC partner states is falling as member countries look beyond the borders for other  trading partners. Intra-EAC trade fell by 13 per cent in three years, with total value dipping from $5.8 billion in 2013 to $5.06 billion in 2015. Between 2014 and 2015, intra-EAC trade shrank by 10 per cent, from $ 5.6 billion to $5.1 billion. The bulk of EAC exports were destined to Common Market for Eastern and Southern Africa (Comesa) and the European Union (EU), amounting to 14.6...