The tracks for a new, faster railway linking the Mombasa to Kenya's capital Nairobi will be laid by the end of 2016 and will open for commercial traffic on target in June 2017, according to the Kenya Railways. The Chinese-financed project is the first stage in a scheme that aims to extend to Uganda and other land-locked states. The goal is to cut the cost of transport and boost trade, by replacing a narrow-gauge line that has slower top speeds. "We're ahead of schedule," Kenya Railways managing director Atanas Maina said in Nairobi. "There's government commitment, there's been a lot of push for land acquisition, there's been very heavy mobilisation, and the funding has gone very well." Kenya had aimed to complete 40 per cent of civil works, ranging from laying track to fixing bridges, by the end of 2015. It is now on track to complete half the work by year end. Maina said he hoped to have a private management company in place by mid-2016. A transaction adviser will be in place by the end of September to help select a private management firm for the line, Maina said, adding selection would be done by mid-2016. "The intention is that operations will be taken over by a seasoned, third-party private operator," he said. When the project was initially envisaged, the opening date was expected to be in 2018, but since then the government has given the plan a higher priority. Maina also said he hoped to begin secure...

Mombasa Governor Ali Hassan Joho has set the stage for a fresh fight with the national government and Kenya Ports Authority after he announced new levies on shipping containers that will earn the county nearly Sh60 billion. The raft of charges are contained in the Finance Bill covering the financial year to June 2016. The county reckons that the new charges will help grow its coffers with the revenue used to repair infrastructure. For instance, ships will be required to pay a permit fee of $20 per tonne of exports and $20 per tonne to clear imports. The permit and import clearance fees alone stand to earn Mombasa more than Sh52 billion based on the 24.8 million tonnes that went through the port, a major trade gateway to East Africa. The central government in Nairobi had opposed the new levies proposed by the county, warning that they could undermine recent reforms to speed up the clearance of goods through the port. Importers said the extra levies would offer an advantage to a rival port in the neighbouring Tanzania, which is expanding its facilities in a multi-billion shilling plan. Mombasa Land executive Francis Thoya said the county is negotiating with KPA over the new levies despite the port managers denying any such talks. “It should be noted that the port is in Mombasa, therefore, the county deserves to charge some taxes to get revenue in order to provide better services to the public,” Mr Thoya said. “We intend to introduce the...

Mistrust has emerged among the East African Community partner states over Tanzania's commitment to the Economic Partnership Agreement that would give the region's goods duty-free access to European markets. Tanzania is likely to delay the signing and ratification of the EPA document on the grounds that it was rushed through. Dar es Salaam has threatened not to sign the deal before its concerns on contentious issues are addressed. The region has until December 31 to sign the deal with the European Union or go back to the negotiating table. Initial document A source at the EAC Secretariat, who is privy to the matter, said Tanzania was forced to sign the initial document on the eve of October 14 after the EU threatened to withdraw its funding for agriculture under the European Development Fund (EDF). "At the time when Tanzania had refused to sign the initial document, discussions on when to release the EDF funds to member countries were ongoing in Italy. So Tanzania was given an option of either signing or forgoing the EDF funds. The same night they agreed to sign the EPA document," said the official. Source: The East African

Mombasa port has registered a new record performance by a container ship, handling 852 Twenty Foot Equivalent Units (TEUs) in less than eight hours. The record shift performance by Evergreen Shipping Line vessel MV Cape Maas shatters that of 755 moves set recently by the largest-ever container vessel to call at the port, MV Clemens Schulte, which also worked with three ship-to-shore gantry cranes to record 3,397 cumulative moves in 48.91 hours. Kenya Ports Authority managing director Gichiri Ndua said the vessel posted her best performance on the third shift using three ship-to-shore gantry cranes, where she registered 116 berth moves per hour. The Colombian-registered ship has a total capacity of 2,800 TEUs, a gross tonnage of 35,708 and a declared draft of 12.5 metres. She regularly calls at the port of Mombasa monthly flying a Marshal Islands flag. Amr Mostafa, the operations manager of the MV Cape Maas shipping agent, said the shipping line had enhanced its operations since January and was looking forward to becoming the best caller at the port of Mombasa. Source: Media max

Since East Africa’s single tourist visa was launched in February last year, 4,000 visas have been issued. This is a month-on-month improvement from an average of 156 visas sold in the 10 months to December last year, to 305 this year. With the visa, foreigners can visit attractions in Kenya, Uganda and Rwanda on paying a fee of $100 (Sh10,600); Tanzania and Burundi are not party to the deal. Chief tourism officer of Rwanda Development Board said this illustrates that easing the visa process can significantly increase the uptake of the region’s tourism products. “Kenya and Uganda had to revise their visa fees in favour of the harmonised visa charges. It takes political will for that to happen and it’s good that our three leaders are committed to the process,” she said. Carmen Nibigira, the regional co-ordinator for the East Africa Tourism Platform, added: “We tour over a dozen countries in Europe using the Schengen visa. There is no reason East Africa should have restrictions when visiting all five countries.” Kenya Association of Hotel Owners and Caterers CEO Mike Macharia called on regional airlines to lower fares to enable more passengers take advantage of the new visa regime. Since East Africa’s single tourist visa was launched in February last year, 4,000 visas have been issued. This is a month-on-month improvement from an average of 156 visas sold in the 10 months to December last year, to 305 this year. With the visa, foreigners can visit attractions in Kenya, Uganda and...

The World Bank has released over Sh54 billion to fund the laying of fibre optic cable and construction of a superhighway connecting Kenya and South Sudan. The project, which runs concurrently in the two countries, was commissioned Wednesday following the release of the funds. The fibre optic cable will be placed along the Lokichar - Nedapal road as the road is constructed. South Sudan’s ICT minister Rebecca Joshua Okwaci and her Kenyan counterpart Fred Matiang’i signed a memorandum of understanding in January, making way for commissioning of the project. “The entire project is set to be complete in two years’ time, today we are implementing the road and information superhighway that form the most effective way of accelerating development,” said Robert Mugo, Director, Shared Services at the ICT Authority. Mr Mugo was speaking at the project commissioning event organised by the Ministry of Roads and infrastructure in Lodwar town. The ICT Authority is implementing the Kenyan-side of the fibre optic project through a World Bank fund estimated at Sh2.6 billion. The South Sudan section will cost Sh1.5 billion. Kenya and South Sudan are working on the project as part of the Eastern Africa Regional Transport, Trade and Development Facilitation Project. The fibre and road project is critical to enhance trade between the country and her landlocked northern neighbour.  Kenya’s exports to South Sudan make 25 per cent of South Sudan’s total imports. The volume of Kenyan goods exported to South Sudan has been on the rise. In 2013 for instance,...

The World Bank is short of Sh14.2 trillion for continued support of Africa’s infrastructure projects and emergencies. The World Bank Vice-President for Development Finance Joachim Von Amsberg asked for the support of members of the African Caucus (African Governors of the World Bank Group and the International Monetary Fund) to raise funds to replenish the International Development Association (IDA). "We have a large portfolio, a series of projects in preparation that will drive private investment. These are projects for which there is great demand and we are seeking to mobilise possible resources,” said the World Bank VP in a statement. Kenya in the East African region and Nigeria in West Africa have some major infrastructure projects that require a lot of funds. The countries largely rely on World Bank for funding. EBOLA Kenya’s road network urgently needs improvement. The country is considered among the World’s fastest growing economies. It has earmarked Sh5.5 trillion for infrastructure development. The donor blamed Ebola outbreak, floods in Malawi and the earthquake in Nepal as well, for depletion of a three year fund that got exhausted in the first year. RAED: World Bank releases Sh54bn for Kenya-S. Sudan road The funds meant to replenish accounts of World Bank, officially referred to as Official Development Assistance (ODA) are usually capped at Sh5.5 trillion. However, World Bank has stretched its request quoting the emergencies that still need attendance. According to Mr Amsberg, the funds help by maximising impact on development, leveraging public and private resources, in addition...

KAMPALA, Uganda - Regional manufacturers last week asked that the East Afrian Community (EAC) governments favour them when contracting for goods and services. In a set of resolutions and meeting as the First Manufacturing Business Summit, they agreed that public and private procurement is key to creating necessary demand for locally manufactured products as well as promoting technology based business start-ups.  ‘To this end, the government of East Africa Partner States and the private sector are called upon to prioritize in their procurement, the sourcing of locally manufactured products including in agro-food, furniture, motor-vehicles, parts, apparels and footwear. The EAC Secretariat in collaboration with EABC should prepare a regional promotional strategy for the implementation of Buy-East Africa-Build- East Africa scheme (BEABEA)’, a statement reads in part. The Summit was attended by Dr. Mukhisa Kituyi, UNCTAD Secretary General, Amb. Richard  Sezibera, EAC Secretary General,  Amelia Kyambadde, the Minister for Trade, Industry and Cooperatives,  Adan Mohamed, Cabinet Secretary for Industrialization and Enterprise Development, Kenya, Tabu Abdallah Manirakiza, Minister for Finance Republic of Burundi, Adam Kighoma Ali Malima Deputy Minister for Finance of Tanzania, Dr. Joseph Mungarulire, representing the Minister for Trade and Industry, Republic of Rwanda, Denis Karera, EABC Chairman, Amos Nzeyi, UMA Chairman. The business people also called for a regional Local Content policy which clearly defines ‘local’ in a regional content  to ensure that preferential treatments accorded to nationals are extended to all suppliers within  in East Africa region. The Summit was jointly organized by East Africa Community Secretariat and...

East Africa has emerged at the leader in mobile payment over the years, with countries like Kenya having more than two-third of its adult population using mobile phones to transact. With the mobile money market in sub-Saharan Africa expected to double by 2019, lack of interoperability between telecoms operators and cross-border restrictions has stood out as one of the key challenges that face the growth of the revolution. According to a Wall Street Journal report, some of the continent’s biggest telecoms are striking deals to allow their customers to make payment across networks and country borders, something that cemented the region as a leader in mobile financial technology. In January, East African nations of Kenya, Rwanda and Uganda, signed a One Area Network Agreement (OANA) to help improve cross-border telecommunications and expand the scope of mobile money transfers in the sub-region. “We are now exploring how we can have the One Area Network infrastructure grow from voice to data and mobile money transfer. We want you to be able to move money from your M-Pesa account here to a relative in Kigali and vice versa or from Airtel Uganda to Safaricom in Nairobi,” Fred Matiang’i, Kenya’s Communications and Technology minister, said. London-based Vodafone Group and South Africa’s MTN Group hatched a deal that allowed their customers in East and Central Africa to transfer money to each other. Millicom also announced it would allow its customers in Tanzania and Rwanda to send money to each other. These telecoms are eyeing the...

By Ben Gasore The East African Tourism Platform (EATP) has pledged to continue marketing the region as a single tourist destination, as well as take a leading role in conservation efforts to create a sustainable tourism industry in the region. EATP comprises of the East African Community (EAC) countries' tourism boards and tour operators. "We are moving into packaging the region as one destination, celebrating flagship tourism events and finding solutions to challenges together, which wasn't happening before," said Amb. Yamina Karitanyi, the chief tourism officer at the Rwanda Development Board. Amb Karitanyi was speaking during a meeting that brought together EAC tourism boards officials and tour operators to discuss opportunities and challenges facing the region's tourism sector in Kigali over the weekend. The meeting coincided with the annual 'Kwita Izina' ceremony on Saturday, where 24 baby gorillas were named. The annual flagship tourism event in Rwanda was moved from June every year to September as part of a joint tourism promotion initiative established under a tripartite agreement between Rwanda, Kenya and Uganda. Under the deal, each member country has a period to focus on a flagship tourism event. Kenya was allocated October, where they host the Magical Kenya Expo, and Uganda took June when it hosts Uganda Martyrs Day on June 3. "As stakeholders in Kenya, the most important thing is that we are now taking this step. We started with Magical Kenya in October as an anchor flagship programme to market the three destinations and we have so...