The new Sh30.9 billion terminal at Mombasa port will be ready for use from June next year, increasing container space by 450,000 twenty-foot equivalent units (TEUs). Chris Kiptoo, the TradeMark Africa (TMA) Kenya director, said the multi-donor agency will hand over the facility to the Kenya Ports Authority (KPA) by mid next year. In early September, High Court judge Louis Onguto had barred the Public-Private Partnerships (PPP) committee from hearing an appeal against the disqualification of Danish logistics firm Maersk from the $300 million (Sh30.9 billion) tender. “From what I gather, it should be ready by June 2016 but it is also safe to say that by end of 2016 that terminal should be fully operational,” said Dr Kiptoo. He added that TMA has injected Sh20 billion to support the expansion of an eight-lane highway from the Moi International Airport to Changamwe roundabout to Port Reitz Road to ease operations at the upcoming port. Dr Kiptoo said they chose the Port Reitz area because it is yet to be operational and the contractor is already working. “We agreed with the government to do the 6.4 kilometre road because it will help in evacuating cargo. We are looking at additional funds to do the road from Changamwe roundabout to gate 18. We have secured a distance of 1.2 kilometres,” he said. Extra work from Kipevu Road to Magongo Road is set to start this financial year. He noted that the works are being conducted outside the port to increase flow by...

Mr Moi said the visit by Kikwete and subsequent address to the Kenyan Parliament revived hopes for an East African Federation. "During his meetings with President Uhuru Kenyatta and also the members of Kenyan Parliament, he emphasised the strategic nature of the partnership between the two countries," Moi said in statement through his Press Secretary Lee Njiru. Moi said President Kikwete raised optimism among Kenyans, when he not only referred to them as neighbours but brothers. "The tone and content of the talks between the two regional leaders give a lot of hope to those who wish to see the fruition of an East African Federation during their lifetime," he said. President Kikwete was in the country last week where he bid farewell to Kenya as his term comes to an end. He reassured Kenyans that there would be no change of policy in relations with his country once he leaves office. "Only some very crazy person can contemplate shift of policy as far as good relationship with Kenya is concerned," Kikwete told a joint session of Parliament last Tuesday. He said as Tanzania's largest trading partner, Kenya was strategic and would remain so for a very long time to come. He gave a personal undertaking that the ruling party Chama Cha Mapinduzi (CCM) candidate Dr John Magufuli will not have any different policy on Kenya in the event he wins the tightly contested presidential election scheduled for October 25. "Let nobody have any misgivings about relations with Kenya in...

Nirobi (HAN) October 12, 2015 – Public Diplomacy and Regional News.Kenya plans to roll out Special Economic Zones (SEZs) which will enjoy lower taxes to boost the country’s investment profile. The designated trading zones will be established in the first quarter of 2016, the Industrialisation ministry has said. They are expected to help investors cut down on key cost drivers such as transport, with the hope that surplus funds would go towards value addition.  The focus of the new policy on SEZs is that goods be produced closer to raw material sources and investors handed preferential terms on matters such as licensing. “The ministry plans to roll out the Special Economic Zones in the first quarter of next year,” the Industrialisation ministry said last week following a business forum between Kenya and Tanzania. President Uhuru Kenyatta in September signed the Special Economic Zones Act 2015, which spells out key measures to revamp activities in the blocs. The special economic zones law provides incentives for industries to operate in designated zones including Naivasha, near the Ol Karia geothermal power plants. Manufacturers in the SEZs in Naivasha will, for instance, be offered discounts on power bills because of lower transmission costs from the power plants to the industrial hubs.The Act provides for numerous tax incentives for investors, including exemption from all existing taxes and duties payable under the Customs and Excise Act, Income Tax Act, East African Community Customs Management Act and Value Added Tax Act on all special economic zone transactions. Enterprises at the...

The impetus for cross-country projects in Africa has always been motivated by the cost of doing business on the continent.There have been noticeable improvements in sectors such as the ICT sector, however, progress in other sectors, such as transport has been slow. What factors need to be present in order to guarantee the success of projects? From an operator’s view, a big issue is the cost of trade between countries on the African continent. There is a need for a free trade agreement and that many businesses are sceptical about the potential success of African projects, despite a number of very successful African projects, such as the Pedicle Road on which one-stop border posts have been implemented. The introduction of these border posts has reduced customs-related corruption significantly. It is necessary to get captains of industry into one room in order to try and kick start development and that more control over costs is necessary. Corridors do seem to be making a difference: roads are being improved as is infrastructure, which saves on travel time and thus reduces costs. The example of measures at ports in Dar es Salaam, which were instituted to reduce bottlenecks, is a further case of the cost-saving measure that had been introduced. In order to guarantee the success of corridors, it is vital that the commitment of member states is obtained. One-stop border posts and the implementation of the requisite technology at these border posts are essential to the free flow of people and goods...

China is targeting Kenya’s ports of Mombasa and Lamu in expanding its global influence through trade and connectivity. The Port of Mombasa is the busiest in East Africa and serves Kenya, Uganda, Rwanda, South Sudan and the Democratic Republic of Congo. Port of Lamu, whose construction is underway, is part of the larger transportation corridor between Kenya, Ethiopia, South Sudan and Uganda. When completed, the corridor will be named LAPSET and is expected to facilitate the transport of crude oil and other goods. The Chinese government lists the two ports as important to its One Belt One Road (OBOR) Initiative, an ambitious program meant to create “a community of common destiny” from among 63 countries around the world with about 4.5 billion people. China unveiled the “One Belt, One Road” initiative in 2013 and President Xi Jingping projected an investment of nearly $900 billion. Yet there are challenges to be surmounted. Though launched in 2013, the Initiative has received lukewarm interests from countries initially labelled as important to it. “It is an important initiative that we could tap into. But first, we will have to assess it, domesticate it, and hopefully make our people see its value,” Mr Michael Kinyanjui, Kenya’s ambassador to Beijing said of OBOR. “We have to talk with our partners to unleash the spirit of competitiveness. We have to consider the benefits as well as the interests of different countries,” he added. The project includes a network of railways, highways, oil and gas pipelines, power grids, Internet networks,...

FFORTS by East African governments to set up a favourable environment for investment and transport are yielding positive results. The recent launch of a grand road project that runs from Arusha-Holili/Taveta-Mwatate, is a case in point. President Jakaya Kikwete of Tanzania and his Kenyan counterpart, Mr Uhuru Kenyatta launched the project at Taveta, as President Kikwete started a tour to bid farewell to Kenyans, as he is set to retire later this year. The road is very fundamental for the regional integration and establishing the missing road network links in the regional infrastructure corridor. President Kikwete expressed his optimism for the accelerated economic development of the area as the road will help transport goods to and from the port of Mombasa and create employment to more people in the process. He said the project, which is supported by the African Development Bank (AfDB), will see vehicles avoid damage because this would be a quality road. The project comprises civil works for the construction of the 42.4km Arusha bypass. Also there will be a dual carriageway linking the Sakina-Tengeru section of 14.1 kilometres as well as the construction of two roadside amenities at Tengeru, one on either side of the dual carriageway in Tanzania. On the Kenyan side of the bargain, the project involves the upgrading of the 89-kilometre Taveta-Mwatate portion. There is also a construction of the 12-kilometre Taveta bypass and two roadside amenities, one each at Bura and Maktau along the Mwatate-Taveta Road. President Kikwete says this is a...

The East African Community partner states have agreed on the outstanding trade issues under the Tripartite Free Trade Area (TFTA). The EAC partners are expected to present their offer to the other TFTA members for a decision at the upcoming meeting in Kigali this week. If adopted, the deal will pave the way for EAC goods to enter larger markets such as South Africa, Egypt, Ethiopia and Eritrea beginning next year when the TFTA comes into full force. The pending issues the five countries have already agreed on include rules of origin, liberalisation of tariff offers and dispute settlement. They have agreed to liberalise 63 per cent of their tariff lines to the other TFTA partners and 37 per cent of tariff lines to be liberalised and further negotiated. “This means that only 63 per cent of specified goods, which exclude sensitive goods, will be allowed into the region from the other TFTA partner states at zero per cent duty rate,” said Mark Ogot, a senior assistant director at Kenya’s Ministry of East African Community Affairs and a Tripartite expert. He said that the tariff offers by EAC allow completion of ongoing negotiations for a free trading area “Further discussions on the tariff offers by the EAC will depend on what the other countries will be offering but no country or bloc will be allowed to give a tariff offer below what other member states are offering,” said Mr Ogot. However, Tanzania will apply non-preferential rates on selected tariff lines...

Tanzanian President Jakaya Kikwete's recent visit to Kenya helped to resolve a number of disputes, which could see businesses in the two countries making massive gains. As President Kikwete and his host President Uhuru Kenyatta made public appearances, bilateral talks by the respective Ministers for East African Community, Trade, Agriculture and Livestock, Information and Communications and Foreign Affairs were going on behind the scenes to thrash out thorny issues that are hindering trade and free movement of people and services between the two countries. A report on the bilateral talks, seen by The EastAfrican, indicates that Nairobi raised concerns over Tanzania's consistent blocking Kenyan businesses access to the Tanzanian market by subjecting Kenyan manufactured goods to numerous requirements and high levies, making them too expensive to compete in the Tanzanian market. The protectionist measures, the Kenyan ministers said, were against the spirit of the East African Community Common Market Protocol. The Tanzanian side raised concerns over strict measures Kenyan authorities have imposed on their investors and high fees by Kenyan authorities at the border points. According to the report, Kenya complained that while it allows a stay period of six months to Tanzanian citizens in the country as required by EAC Common Market Protocol, Tanzania allows Kenyan citizens only a three months stay. In addition, while Kenya provides gratis visas to Tanzanian students, Kenyan students are required to pay $100. "The yellow fever certificate required by Tanzania is still an issue that needs to be addressed so as to facilitate...

HOLILI/TAVETA  — President Jakaya Kikwete of Tanzania and his Kenyan counterpart, President Uhuru Kenyatta, launched the construction of Mwatate-Taveta Road in Kenya last week that will link with Arusha-Taveta to connect the central and northern transport corridors in East Africa. President Kenyatta said: “This is one of the missing links aimed at enhancing the East Africa Integration objectives, and a crucial link between Kenya and Tanzania. Once the road is complete, it will attract large-scale investors in Kenya and Tanzania, and that free trade and non-tariff trade barriers will improve business in the EAC region.” The 90 kilometre road is being constructed by a Chinese road construction company, China City Construction Group. The volume of cross-border trade between Kenya and Tanzania will increase by 50%  once the Arusha-Mwatate road is complete, outgoing Tanzania President Jakaya Kikwete has said. The main objective of connecting the two transport corridors is to easeinterconnectivity transport in the EAC region through infrastructure development and trade facilitation. The northern and central transport corridors connect the people of Burundi, Kenya, Rwanda, Tanzania and Uganda. These corridors also provide port access to the people of the Democratic Republic of Congo (DRC) and Southern Sudan. The launching ceremony is a culmination of the African Development Bank (AfDB) funded grand road project in the East African region, which is expected to boost trade and spur growth and prosperity in the region. A few months ago, the Arusha to Tengeru expansion road was launched in Arusha under the AfDB loan package....

KENYA’S investments in Tanzania have reached 1.685 million US dollars in 518 projects creating 55,762 jobs. The Executive Director of Tanzania Investment Centre, Juliet Kairuki, revealed this in Nairobi recently in Tanzania-Kenya business forum during an official state visit of President Jakaya Kikwete to Kenya. Juliet Kairuki said, the forum was organized by Kenya Ministry of Foreign Affairs and International Trade, Kenya Investment Authority, Kenya Association of Manufacturers and Kenya National Chamber of Commerce and Industry and Tanzania Investment Centre. It attracted around 200 participants including senior government officials, leaders and members of the private sector who represented various sectors particularly energy, manufacturing, education, transport and logistics, financial sector, real estate and tourism. In his keynote remarks, President Kikwete said Kenya was not a competitor but a strategic partner to Tanzania as it ranks fifth among top 10 countries with investment in Tanzania. President Kikwete also hailed the joint efforts to improve infrastructure between the two countries and singled out the recently launched 85 kilometre Arusha-Hoili/Taita Taveta road. Kenya’s President Uhuru Kenyatta honoured President Jakaya Mrisho Kikwete for the advances made in Tanzania under his leadership, particularly in the area of trade, Investment and regional integration. He pointed that friendship between Tanzania and Kenya has been strengthened by common membership of the East African Community, and the recently signed EAC-COMESA-SADC Tripartite Agreement. He said that last year Kenya’s exports to Tanzania grew by 5.5 per cent noting these figure was not a true reflection of potentials that exist between the...