News Tag: Kenya

EPZA seeks warehouses on rising local exporters’ demand

Public and private entities with idle warehouses in 10 counties could reap handsomely after the government expressed interest in leasing them for export-bound goods manufacturers. Export Processing Zones Authority (EPZA) said it was seeking fully developed vacant warehouses in Athi River, Eldoret, Kiambu, Kisumu, Machakos, Mombasa, Mtwapa, Nairobi, Nakuru, Nyeri, Thika or Voi for 30-year leases. In a notice published in the dailies, the EPZA said the facilities will be adopted as EPZ facilities and leased out to investors keen on launching processing facilities for export-bound goods. “The warehouses should be connected to a three-phase industrial electricity supply, a mains water supply, a wastewater line and the lettable spaces should be 300,000 square feet or more, while its internal and external access roads should be paved,” it said adding the facilities should be located within two kilometres of a densely populated area. In its 2016 annual report, the EPZA said limited availability of industrial space adversely affected planned expansion of existing apparel factories noting that 50 companies were unable to expand as they had exhausted available space. The EPZA’s invitation is informed by increasing interest among prospective export-bound firms intending to process locally produced raw materials from coffee, tea, horticultural produce among others, thereby generating jobs and higher returns for local farmers. In 2016, the export processing zones accounted for 17.44 per cent of job opportunities in the manufacturing sector. The EPZA then said finished goods worth Sh36 billion were exported to the US, with garments contributing Sh34 billion, Europe...

Regional maize imports keep flour price low

Cross-border imports from Uganda and Tanzania have helped keep the price of maize flour relatively low despite forecast increase to Sh120 for a two kilo-packet after lapse of government subsidy on December 31. Most brands are now selling at less than Sh110 for the two-kilo packet with an exception of Jogoo that is retailing at Sh113. Millers say they are getting sufficient stocks from the neighbouring countries and at a good price compared with what local farmers are selling them. “We are getting good stocks from Uganda and Tanzania that have played a key role in boosting the local stocks hence keeping the cost of flour low,” says Cereal Millers Association. Regional maize is landing at Sh2,500 per 90 kilogramme bag whereas millers are paying a minimum of Sh3,000 to get the produce locally, after the government set a price of Sh3,200. Still there are fears the cost might go up starting March when maize stocks are expected to start dwindling. Imports from Uganda grew significantly between October and November last year compared with the same period in 2016, thanks to good price in Kenya following a drought. Data from Eastern African Grain Council indicates the cross-border trade between the two countries increased from 1,408 tonnes in the fourth quarter of 2016 to 47,563 in the same period last year. Source: Business Daily

Agency says SGR freight business is picking up

The volume of cargo transported using the Standard Gauge Railway (SGR) is on the rise, the Kenya Ports Authority (KPA) says. Managing director Catherine Mturi-Wairi said some 671 Twenty-Foot Equivalent Unit (TEUs) containers were delivered up-country by rail last week, an increase of 233 TEUs compared to the previous week. “As you are aware, the Standard Gauge Railway (SGR) commenced freight services to the Inland Container Depot Nairobi (ICD). We have started seeing an increase in the usage of standard Gauge rail services,” she said Sunday in a speech during the KPA corporate golf tournament in Machakos. “This development is aimed at bringing services closer to the customer and also decongesting the roads.” There has been concern over low volume of cargo transported through the SGR as importers shied away from the train service. They have also cried foul over a directive to transport all cargo coming in through port of Mombasa via SGR to Nairobi’s ICD in Embakasi. Port activity Ms Mturi-Wairi said Mombasa port had recorded a significant increase in total cargo throughout with a growth of 10.9 per cent from 27.36 million tonnes in 2016 to 30.35 million tonnes in 2017. Container traffic 98,586 TEUs rose from from 1.091 million TEUs handled in 2016 to 1.190 million TEUs in 2017. “On the other hand, transit cargo had a notable increase in performance from 7.75 million tonnes in 2016 to 8.64 million tonnes in 2017, posting a growth of 11.5 per cent,” she said. Imports grew by 10.8...

Fish exports earn more than imports

Kenya earned much more from fish exports in the last three years than it paid for imports despite rising volumes shipped in and an outcry over foreign sea food flooding the local market. The country earned Sh8.5 billion from selling abroad, which was higher than the Sh4.03 billion paid for imports in the period under review, according to official figures. Export volumes in the last three years stood at 16,429 tonnes compared with 40,991 tonnes imported in the same period. “The earnings from exports were higher compared to imports because of the high value that Kenya’s fish earned in the world market,” says the Department of Fisheries. Kenya mainly imports frozen tilapia, frozen mackerels, sardines, prawns and salmons among others. The country exports frozen Nile Perch, tuna, octopus, frozen whole tilapia and lobsters caught in the lakes and the Indian Ocean notably to the EU. Fishmongers have been complaining of an increase in cheap imports mainly from China, which they say affect sales as they cannot compete with the local catch, which are expensive. The government says Kenya will continue importing fish to meet the widening deficit, due to dwindling stocks both in the aquatic and marine space. Kenya has an annual deficit of 800,000 tonnes, which is filled through imports. Lake Victoria, traditionally a major source of fish in the country, is currently suffering from depleted stocks. The stocks have been dwindling because of the use of wrong fishing gear and overfishing. The government is taking corrective measure such...

Investors seek to put billions in 100 economic zones

Local and foreign investors are seeking licences to put up 100 Special Economic Zones (SEZ) across the country. Industrialisation secretary Adan Mohamed said the applications are being scrutinised with priority given to those eyeing use of locally produced raw materials to process products for export. During a one-day forum convened by projects and infrastructure specialist firm, IKM Advocates and the International Projects Finance Association, Mr Mohamed said only quality SEZ investments that can generate sustainable jobs, impart employable skills and create wealth for local communities through purchase of locally produced raw materials will benefit. “Apart from Tatu City and Africa Economic Zones, Naivasha as well will be built enabling manufacturing facilities enjoy access to cheap geothermal power and cheap Standard Gauge Railway transport to Mombasa port,” he said. Dongo Kundu SEZ is also under development at the coast and will occupy 1,500 hectares. The forum was told a one-stop shop office within SEZ facilities or at the Special Economic Zones Authority (SEZA) headquarters would be established enabling SEZ operators, developers and enterprises to obtain licences with ease. “The SEZ Act grants incentives that can only be realised once we have operational laws exempting investors from some tax obligations such as payment of stamp duty. All stakeholders should be engaged in formulating the policies that align the incentives to the tax laws,” said IKM managing partner James Kamau. Mexico’s Federal Authority for SEZ Development executive secretary Enrique Antonio Huesca Fernandez called for strengthening of the SEZ institutional framework and a flexible...

EALA to debate state of EAC institutions

Members of the East African Legislative Assembly last week began a wearing road trip in their two-week on-spot assessment of institutions, installations and facilities of the EAC on the Central Corridor and the Northern Corridor. While in Kahama, north western Tanzania, Sunday Times' James Karuhanga who is part of a media team travelling with the MPs interviewed the Central Corridor team leader, MP Wanjuki Muhia  (Kenya) before they headed for Ngara, 300 kilometers away. She explained why the newly sworn in fourth Assembly embarked on the trip and what is expected of them. Below are the excerpts: After getting to Kahama last night, you covered exactly 1,509 kilometers from Zanzibar, please shed light on why two teams of regional lawmakers are traversing the central and northern corridors. We embarked on this journey from Zanzibar all the way through the central corridor to Rwanda so that we can identify and appreciate East African institutions. We found it fit for members of parliament to come out of the comfort zone and go face the reality; where are these institutions, what does the public want, how does the public perceive the Community and how much can we do for the Community? In this journey, we are meeting stakeholders such as clearing agents, government officials, and operation managers be it at the port of Dar es Salaam, or the transporters you saw at Vigwaza weigh bridge. We interviewed truck drivers to understand their story and the main agenda is to first, appreciate the institutions...

We need goodwill from EAC leaders for meaningful integration

Expulsion of Ugandans by the Tanzanian government is not something new; it happens almost every year. But I have never seen the Ugandan government react until when herdsmen were expelled. The Foreign Affairs minister wrote a letter of protest and handed it over to the ambassador of Tanzania to Uganda. Being a shadow minister for East African Community Affairs, I don't think that this higgledy-piggledy scenario would be happening between member states under the East African Community, if the heads of states of member countries were transparently committed to the integration. It is important to recollect that on November 30, 1993, the heads of states of Uganda, Kenya and Tanzania signed a permanent tripartite commission (PTC) which arrangement later ushered in the signing of the East African Community Treaty on January 22, 1999 by the three states. The integration process has been progressing in four steps embodied in protocols: I will only mention the two which have been birthed. First is the Customs Union Protocol, which came into effect in 2005; this allows East Africa to operate as a free trade area where partner states reduce or eliminate tax on goods originating from their countries and have a common tariff on goods imported from outside the participating countries. Secondly, there is the Common Market Protocol, which came into effect on July 1, 2010. This provides the region with a single economic space within which business and labour will operate to stimulate investment. The common market serves to provide freedom of...

Brooking’s 2018 Foresight report points the way for African integration in 2018

Last year, there were a lot of discussions on how Africa could leverage on its regional economic communities for more integration on the continent. Continental Free Trade Zone, was also one of the major discussions in the recently concluded African Union summit; one to be led by the new African Union chairperson Rwandan president Paul Kagame. In a recent report by Brookings Institute, the importance of leveraging on Africa’s regional communities when talking about a Continental Free Trade Zone was laid bare. The report, titled “ Foresight Africa: Top priorities for the continent in 2018” featured contributions from many influential figures on the continent including Rwanda president Paul Kagame, Ivorian president Alassane Ouattara, former Nigerian finance minister Ngozi Okonjo-Iweala, African Development Bank chairman Akinwunmi Adesina e.t.c, who all gave their thoughts on what they think will happen on the continent in 2018. Unleashing Africa’s Inner Strength The first chapter was about ‘Unleashing Africa’s Inner Strength,’ and the Rwandan president who is also leading the push for a Continental Free Trade Zone wrote on building a stronger African Union. The president referenced a survey conducted by Afro Barometer in 2015, which did an extensive study into the relative strength of regional bodies on the continent. Criteria such as trade integration, regional infrastructure, productive integration, free movement of people, and financial and macroeconomic integration were used to rank each regional bodies. The African Union recognizes eight Regional Economic Communities (REC); Community of Sahel-Saharan States (CEN-SAD), Common Market for Eastern and Southern Africa (COMESA),...

EAC Heads of State to meet over health, infrastructure

East African Community Heads of State are expected to convene in Uganda’s capital Kampala next week to discuss a number of regional matters, including infrastructure and health sector growth. Olivier Nduhungirehe, the State Minister in the Ministry of Foreign Affairs, Cooperation and East African Community, confirmed to The New Times on the agenda includes a two-day Joint EAC Heads of State Retreat on Infrastructure and Health Financing and Development. The meeting will be held between February 21 and 22 and will be followed a day later by the 19th Ordinary Summit of the EAC Heads of State, which will also be held in Kampala. “We are going to examine the progress of EAC agenda; looking into a number of issues facing the regional bloc, ranging from EAC financing to infrastructure development,” Nduhungirehe said yesterday. EAC Secretary General Liberat Mfumukeko said in a statement that preparations are in “high gear” for the joint Heads of State retreat themed “Deepening and widening regional integration through Infrastructure and Health Sector Development in the EAC Partner States’’ Mfumukeko, who was speaking at a news conference held at the EAC Headquarters in Arusha, Tanzania, to update the media on the upcoming Joint EAC Heads of State Retreat and 19th Ordinary Summit, said that the former is aimed at accelerating the attainment of the objectives of the EAC Development Strategy, African Union Agenda 2063, and the Sustainable Development Goals in the infrastructure and health sectors in the EAC. He said the joint retreat is expected to...

Regional trade hampered by increasing barriers and influx of cheap imports from China

Pakistan has become Kenya’s largest export market even as trade with the country’s East African neighbours continues to falter. The value of exports to the Far East nation went up by 69 per cent from Sh40 billion recorded in 2016 to Sh64 billion last year, boosted largely by tea, Government data shows. Pakistan has in the past been a strong market for Kenyan exports and in 2014 was the fourth largest buyer of the country’s goods after Uganda, Tanzania and Britain. Over the past five years, however, the value of exports to the Asian country have steadily increased and pushed it to the top of Kenya’s export destinations. The value of exports to Pakistan have since risen from Sh18 billion in 2012 to Sh64 billion last year. Imports have similarly recorded a 30 per cent rise to stand at Sh18 billion in 2016, up from Sh12 billion in 2012. Data from the Kenya National Bureau of Statistics (KNBS) further indicates the value of Kenya’s tea exports went up by 28 per cent from Sh124 billion in 2016 to Sh159 billion last year. Aside from tea, other export commodities from Kenya to Pakistan include coconuts, dry nuts, mangoes, fresh flowers and powdered milk while the main import is mainly rice. IN DECLINE Uganda and Tanzania, which once commanded a lion’s share of Kenya’s export market, have been on a decline. Trade with Uganda, for years the leading destination of Kenya’s goods and services to the East African region, fell by 28...