Speaking at the Milly Glass Works in Mombasa County, South Africa’s High Commissioner to Kenya, Ms Koleka Anita Mqulwana said bilateral relations between Kenya and South Africa are at an all time high. She said many opportunities now exist between Kenya and South Africa for the two countries to build stronger trade and investment ties that can withstand the test of time. Mqulwana said her country was easing visa requirements for business people and students so as to enhance ‘people-to-people relationships’. The envoy who was accompanied by the embassy’s economic counsellor Njabulo Mbewe and senior marketing officer Gerald Ockotch visited the Kenya National Chamber of Commerce and Industry (KNCCI) Mombasa branch offices commended the management of Milly Glass Works Limited following their exemplary performance. The firm is the leading glass container and tableware manufacturer based in Mombasa and supply leading its products to spirit, food and beverages industries where it produces over 100 million bottles per annum. Milly Glass Works Limited has markets in Kenya, Uganda, Tanzania and Ethiopia. The envoy added that   both countries need to prioritize agriculture, tourism, sports and cultural activities for the youth to enhance social cohesion. She also met Governor Hassan Ali Joho and other senior official representatives where they discussed the twining of Mombasa and Durban cities to stimulate tourism and maritime trade. The ambassador said they would welcome investments in business, tourism and industrial sector. ‘The port cities of Durban and Mombasa would soon sign a memorandum of understanding that would help in...

Arusha — Talks aiming at ending political violence in Burundi will resume next week under retired President Benjamin Mkapa with exiled politicians not likely to attend. Sources close to the Office of the Facilitator of Inter-Burundi Dialogue said some opposition leaders, who fled the country after being implicated in the May 2015 coup attempt against the government of President Pierre Nkurunziza had not been invited. "They will not come because they are wanted at home for subversive activities," a source speaking on condition of anonymity told The Citizen, adding that the Bujumbura authorities alleged those behind the 2015/16 turmoil were also not expected to join the talks. A statement issued yesterday by the Office of the Facilitator through the East African Community (EAC) announced the commencement of formal dialogue scheduled for February 16-18 at Arusha International Conference Centre (AICC). The convening of the session follows what is described as "rigorous consultations" the facilitator made with various stakeholders within and outside Burundi after, which Mr Mkapa and his team identified an eight-point agenda raised by all stakeholders and agreed to be the main sticking points, which he reported to the Summit of the EAC Heads of State in September last year. "This eight-point agenda, which will form the thrust of the dialogue and subsequent negations, is no particular order of importance," the statement says. The main sticking points include security and commitment to ending all forms of violence, commitment to the rule of law and an end to impunity, status of...

German firms are keen to invest in machinery, technology and skill development as they look to share the spoils in the manufacturing industry currently dominated by the Chinese. The sector's contribution to the economy has stagnated at about 10 per cent for years. Germany, a global industrial powerhouse, whose wealth is estimated at $3.73 trillion (Sh386.32 trillion), is pushing for investment deals under the German African Business Summit, underway in Nairobi, riding on the Western European country’s G20 Presidency. Germany’s visiting Economic Co-operation and Development minister Gerd Müller said Kenya is key to its change in strategy – shifting co-operation with Africa “from aid to trade”. “Public money has to mobilise private investment, for instance through government guarantees. Private investment has to be increased and protected against risks. We need a paradigm shift, a new dimension of cooperation," Müller said. This underscores the dollar economy’s deepening interest in the region. German Economic Affairs minister Brigitte Zypries said Africa is a major priority for his government, as the country eyes more opportunities in sub-Saharan Africa “for investing, trading, learning and connecting – both for business and government”. Treasury Cabinet Secretary Henry Rotich and Foreign Affairs' Amina Mohamed and their German counterparts yesterday signed agreements which include a joint East African-German university of applied sciences. They also agreed on a joint initiative to enhance technical and vocational training in Kenya. Rotich said the two countries are also building on a double taxation agreement to expand investment space. Under the DTA, a firm...

A delegation from the Bureau of International Recycling (BIR) has travelled to Nairobi to meet trade advisors from the World Bank, to discuss the future of the trade in used textiles to East Africa. The group included BIR President Ranjit Baxi and Textiles Division President Mehdi Zerroug whose visit to Kenya was focussed on proposals to phase out the imports of used textiles and footwear into the East African Community (EAC) by 2019. The EAC comprises six countries: Uganda, Kenya, Tanzania, Rwanda, Burundi and South Sudan. In March 2016, the heads of state of the EAC agreed to phase out used clothing imports with a view to promoting industries in the textile and leather sectors within their own countries.Backing for the trip also came from the UK’s Textile Recycling Association (TRA) with a number of its members also contributing to the funding of the meeting. Trade The trade in used clothing is an important market for some of the UK’s textile recyclers, with estimates suggesting that as much as 15% of the used clothing exported from the UK finds its way to EAC nations. And, the trade in used clothing is also thought to be important within the EAC nations themselves, with the imports providing an affordable source of clothing and employment opportunities. BIR met with trade advisors from the World Bank whose work in Kenya aims to accelerate sustainable growth, reduce inequality, and manage resource scarcity, in a bid to discuss potential for a review of the decision by...

Kenya Bureau of Standards (Kebs) has launched an online portal for manufacturers and service providers in a bid to demystify the criteria set to meet certification standards. The portal offers for sale e-booklets with information on certification requirements for specific products. The agency is looking to highlight the 2,000 Kenyan, East African and global standards adopted locally for companies to enusre they meet requirements and produce goods as well as provide services that meet international standards. The portal, which is a joint venture between Kebs and TradeMark Africa, will benefit mainly local processors, regional fresh produce traders and exporters. Fake marks Kebs managing director Charles Ongwae said the new Internet portal would help seal loopholes that processors used to “sneak” products into the market only to be caught peddling uncertified goods bearing fake marks of quality. Last year, Kebs locked 400 water bottling companies out of the market after testing samples from retail chains only to realise that the Kebs stamps on the products were not genuine and the water had not been processed as per the required standards. Mr Ongwae told the Business Daily that Kebs officers inspect business premises to ascertain its suitability as well as the raw materials and processing machinery before the final products are certified. “It is after a rigorous process that we sanction sale of a product. As for imported products, we insist that they must meet requirements in their country of origin or risk seizure upon arrival in Kenya,” he said. “This is...

The Kenya Revenue Authority is educating players ahead of full rollout of the new Integrated Customs Management System in June, which will replace Simba. Deputy commissioner for customs and border control Julius Musyoki said the infrastructure will be piloted by the end of March. “The ICMS is at the advanced stages of development. It will be piloted for three months, before the full rollout in June,” Musyoki said in Mombasa. The KRA is asking players in the shipping industry to familiarise themselves with the new system before it is fully operationalised. “ICMS is a top of the range system, which will be able to integrate with other standalone systems like the Regional Cargo Tracking System. ICMS will be controlled centrally from the KRA headquarters at the Times Tower, Nairobi,” Musyoki said. One of the biggest challenges of the Simba system was perennial breakdown causing inefficiency in cargo clearance at the port of Mombasa. They have been complaints from the neighbouring countries of Uganda and Rwanda in regard to the delay in the delivery of the cargo coming through Kenya. Musyoki said through the new ICMS, all the countries that have been using the port of Mombasa will be able to track the movement of the cargo. “The issue of diversion of transit cargo into local market or disappearance of containers will be a thing of the past,” said the KRA official. Source: The Star

Kenya Revenue Authority (KRA) will replace the obsolete Simba System with a modern integrated customs management system to curb tax evasion by June. KRA said yesterday the Simba System, used in the clearing of imports by custom agents, was no longer tenable as it has glaring loopholes that rogue agents exploit to evade paying duty. KRA Commissioner for Customs and Border Control Julius Musyoki said in Mombasa the system also experiences prolonged downtime, leading to delay in movement of cargo from the port of Mombasa. “Implementation of the new integrated customs system will start at the end of next month, when we will do the piloting before commissioning it in June,” said Mr Musyoki during a meeting on capacity building for the East and Southern Africa region sponsored by the World Customs Organisation. He said the new system, whose implementation is being financed through a Sh1.1 billion financing from the Government and TradeMark Africa, will be fitted with special features to carry out automated evaluation of the value of cargo to help address the perennial challenge of cargo under-valuation. Other benefits of the new system include being able to integrate to the Regional Electronic Cargo Tracking Platform. The platform, which has already been agreed by Kenya, Uganda and Rwanda, will use one system that enables all countries to monitor the movement of cargo from the Mombasa Port to its final destination. “This approach will eliminate the opportunities presently exploited by tax evaders at the changeovers of seals at boarder points...

International tourist arrivals grew by 3.9 per cent globally to reach more than a billion last year. According to the latest UNWTO World Tourism Barometer, international arrivals from January to December 2016 reached 1.23 billion, 46 million more compared to 2015 figures. In Kenya, international tourist arrivals increased by 16.7 per cent to 877,602 compared to the previous year. In Tanzania, the figure grew by 10.42 per cent to 1,020,816 between January and October. Last year marked the seventh consecutive year of sustained growth following the 2009 global economic crisis. “Tourism has shown extraordinary strength and resilience in recent years despite many challenges, particularly those related to safety and security,’’ UNWTO Secretary-General Taleb Rifai said. “Yet, international travel continues to grow strongly and contribute to job creation and the wellbeing of communities around the world.” In Europe, international arrivals reached 620 million last year — 12 million more than in 2015 — while in the Americas arrivals rose by four per cent to 201 million, eight million more visitors compared to 2015. In Africa, the arrivals jumped by eight per cent to 58 million tourists while Asia and the Pacific had 301 million. The Middle East received 54 million global arrivals, a decrease of four per cent compared to 2015. UNWTO projects international arrivals worldwide to grow at three per cent to four per cent this year. According to statistics from the Kenya Tourism Board (KTB), arrivals through the Jomo Kenyatta International Airport jumped by 16.2 per cent to 782,013...

IN SUMMARY Tea Directorate says the volumes grew to 27 million kilogrammes from 19 million kilos in 2015, after an unilateral agreement to suspend the shelf-life cut directive by the Sudanese government last March. The move implies that Kenya’s tea will continue accessing their market without restrictions as a technical research team works to determine the actual shelf-life of the beverage, a condition issued by Sudan. Tea exports to Sudan increased by 27 per cent last year following Khartoum’s suspension of a cut in official shelf-life for the Kenyan beverage from three to one-and-a-half years. Tea directorate says the volumes grew to 27 million kilogrammes from 19 million kilos in 2015, after an unilateral agreement to suspend the directive by the Sudanese government last March. Kenyan traders have also received another major boost as Khartoum gave the country a further six months after the previous waiver expired in December last year. The move implies that Kenya’s tea will continue accessing their market without restrictions as a technical research team works to determine the actual shelf-life of the beverage, a condition issued by Sudan. The directive saw sales to Khartoum drop by 30 per cent in 2015, affecting the exports to one of Kenya’s major markets. Head of Tea Directorate Samuel Ogola said the decision by Khartoum to delay the implementation of the directive played a significant role in boosting the volumes. “There was a significant growth in terms of volumes and revenue that we got from Sudan and this is...

Two Nairobi based customs facilities are being expanded to handle cargo as part of the country’s preparation for the high-speed train. Nairobi South Inland Container Hub, which is expected to be ready in May, will hold uncleared cargo, creating a micro-market for clearing and forwarding agents and container freight stations which are already being set up around the hub. This will enable fast movement of goods as cargo destined for Uganda, Rwanda and DR Congo will be loaded on express trucks for onward transmission in a seamless process undertaken on a digital platform which will also be connected to mobile tracking devices to be embedded on transit trucks. The old Embakasi Inland Container Deport (ICD), currently under expansion, will handle goods for Nairobi customers under the pre-export verification of conformity rules. According to Kenya Railways (KR) Chief Executive Atanas Maina, a 5.1 kilometre standard gauge railway line has been build connecting the two facilities’ reception and dispatch areas to fast-track cargo transportation. To realise the expected efficiency, Mr Maina said, new handling equipment including rail mounted container cranes, front loaders and transfer trucks have been procured for the two facilities. Online platform The statement said that all agencies involved in clearing goods including Kenya Railways, Kenya Revenue Authority, Kenya Bureau of Standards, Pests and Control Board, Kenya Plant Health Inspectorate Service and Kenya Ports Authority will open offices which will be interlinked via a secured online platform which customers will use to clear goods. “A high speed cargo locomotive docking...