The Kenya Electricity Transmission Company Limited (KETRACO) signed a contract worth $240M with China Electric Power Equipment and Technology Company Limited (CET) on the 25th of January, 2018. This contract will result in the electrification of the SGR rail line that is currently powered by diesel. The project involves construction of 14 substations between Mombasa and Nairobi. The main purpose of this venture is to ensure that when the SGR switches to clean energy power source, the supply will be reliable and sufficient for not only the train but other facilities along the Mombasa-Nairobi economic belt including train stations, planned industries, factories and businesses near the railway. This will create more major power customers and consumers and bring other opportunities to the locals. The design of the SGR railway, initially run by diesel-powered locomotives, allows for the addition of a single electric line that will be connected to KETRACO’s 482km 400kV Mombasa-Nairobi Transmission Line (MNTL) that was energized by President Uhuru Kenyatta on the 4th of August, 2017. MNTL, the longest and highest voltage transmission infrastructure in East Africa, has a transfer capacity of 1,500MW which is 200MW shy of the current national demand of 1,700MW. The line was constructed to address the challenges of low voltages, high transmission losses, unreliable supply including strengthening of network security and the national grid system. Its energization therefore debunks as flawed the myth that Kenya does not have a dependable source of electricity, most importantly one that can power the electric train network....

Tanzania and its northern neighbour Kenya have agreed to end their trade dispute, a move that is bound to increase intra-trade within the East African Community (EAC). The agreement bodes well for unity and development of the two countries, and we applaud both governments for realising the significance of removing trade barriers within the six-nation bloc. The dispute saw Kenya banning cooking gas and wheat imports from Tanzania, while the latter blocked Kenyan milk and tyres from entering its territory. If nothing else, the row was making a mockery of the efforts which the countries had put into enhancing regional integration. Trade between Tanzania and Kenya constitutes over 45 per cent of the entire trade within the EAC. Thus - considering the relatively huge trade volume between the two nations - it is our belief that the differences will not take long to be ironed out once and for all. This is for the good of both countries in particular and regional integration in general. Key issues discussed during the meeting ranged from how to resolve multiple levies and other charges; lack of preferential trade arrangements; the need for standardised inspection fees; delays at border checkpoints; slow customs procedures at border crossings and slow implementation of relevant EAC directives. Private sector representatives from the two countries made presentations highlighting trade and investment opportunities in aviation, mining, petroleum and transportation - among many more - which the two countries agreed to pursue as soon as the current trade barrier issues are...

East African countries are leading in implementing Africa's agricultural transformation policies. According to a report on the Malabo declaration, Southern Africa comes second. The declaration is a set of agricultural goals that Heads of State attending the African Union Summit in Malabo, Equatorial Guinea in June 2014 adopted, to be attained by 2025. The Africa Agricultural Transformation Scorecard tracks progress in commitments made by governments. East Africa managed an average score of 4.20, which indicates it is on track to meeting its commitments when assessed against the 3.94 benchmark for 2017, with five out of the eight regional countries that submitted their progress to the AU, managing the minimum 3.92 score. Rwanda was ranked the best agriculturally transformed country in Africa with a score of 6.1, thanks to political and institutional reforms. Burundi scored 4.7, Ethiopia 5.3, Kenya 4.8 and Uganda 4.5, to cement the region's 4.2 score ahead of the Southern Africa region which scored 4.02, and Northern, Central and Western Africa which scored 3.83, 3.62 and 2.35 respectively. Speaking at the launch of the scorecard, Ethiopian Prime Minister Hailemariam Desalegn asked the seven countries that did not submit their reports to do so in the next review in 2020. Source: All Africa

Kenya is heading back to the drawing board after its six-year attempt to promote the duty-free export of coffee, tea, cut flowers, food ingredients and home décor failed to boost its US trade volumes. Textile and apparel products, which have dominated exports under the African Growth and Opportunity Act (Agoa) since it was enacted in 2000, remain the main items in Kenya-US trade, defying efforts made at product diversification over the 18 years. Increasing trade volumes and range of products are some of the grounds that Kenya used to successfully push for a 10-year Agoa extension, now open up to 2025. “Kenyan exports are dominated by textiles and apparel,” reads in part the findings of a review of the current strategy undertaken by the national committee on Agoa. “Clothing for men and women as well as apparel fabrics articles constituted a huge export volume base totalling to at least 65 per cent of the total goods exported in the year 2016.” Trade ministry data shows that value of exports to the US grew to Sh55.billion ($ 551.5 million) in 2016. The Agoa window provides duty-free market access to the US market for 6,421 product lines to eligible sub-Saharan Africa countries, among them Kenya. Since then, there have been four extensions of the programme in August 2002; July 2004; December 2006. The last, in June 2015, extended Agoa for a further 10 years to 2025, including third-country fabric provisions. In 2012, the Trade ministry teamed up with US Agency for International...

The Kenya Ports Authority (KPA) has approved the acquisition of 7.5 acres of land for the expansion of the inland container depot (ICD) in Embakasi in readiness for higher cargo capacity under the standard gauge railway. KPA general manager for engineering services Joseph Atonga told the Business Daily that the move is aimed at adding more capacity on the Sh22 billion facility that was launched by President Uhuru Kenyatta last December. “As cargo volumes grow, the current ICD is going to be congested and it will become small. So as time goes by, there will be need for additional capacity and that is why we are acquiring 7.5 acres of land at ICD for future expansion,” he said. “The current market price of land in that area is about Sh80 million per acre. We will, however, negotiate with the owners for a better price.” The ICD has a cargo handling capacity of 180,000 20-foot total equivalent units (TEUs) per annum, which will be expanded to 450,000 TEUs. The facility has, however been starved of cargo since it was launched. Mr Atonga said that teething problems raised by cargo owners such as price had been addressed, adding that the SGR would soon be the  preferred mode of transport by cargo owners. He noted that the piece of land expected to be developed before December will also be used for handling cargo staying at the facility for a longer period. Under this arrangement, cargo owners will be charged a specific amount for storage for...

Kenya and Tanzania have agreed to put an end to trade dispute, preparing for an increase in intra-East Africa Community (EAC) trade. Both countries have had a bumpy trade relation in the last few years, dropping Kenya's exports to Tanzania by 60 percent in the first six months of last year. Chris Kiptoo, the Principal Secretary in the Ministry of Trade for Kenya and Elisante Ole Gabriel, the Permanent Secretary in the Ministry of Trade for Tanzania said "We have agreed to resolve the none-tariff barriers." They also said: "The two Partner States recognized each other as significant trading partners and underscored the importance of ease of market access for each other's products and services." Source: Menafn

Importers could clear their cargo arriving through the port of Mombasa in six hours following the amendment of the East Africa Community Customs Management Act (EACCMA). The Act if implemented by the Kenya Revenue Authority (KRA) will allow for advance cargo profiling, which will enable direct loading at the port for containers headed to the Inland Container Depot (ICD) in Nairobi through the Standard Gauge Railway (SGR). It is among a new raft of incentives the Government is throwing at importers who have stuck to trailers a month since the SGR cargo service was launched. Weekend Business last week pointed out the long time of upto a month taken to clear a container headed to the ICD as among reasons the SGR cargo service has failed to roar to life. Truckers charge between Sh60,000 and Sh80,000 to ferry a container loaded with cargo from the port to Nairobi while the SGR charges Sh30,000. KRA says it is committed to clear properly documented cargo within six hours to ensure seamless facilitation from the port to the ICD for release of cargo. The ICD has a cargo handling capacity of 180,000 20-foot equivalent units (TEU) per annum and is being expanded to increase this to 450,000 TEU. It has, however, been starved of cargo since it was launched at the end of last year. Commissioner of Customs and Border Control Julius Musyoki says that ability to profile cargo in advance will enable lodgment of manifest on departure by vessel from last port...

The UN specialized agency on civil aviation on Thursday hailed the East Africa Community (EAC)'s aviation safety record. Barry Kashambo, the regional director for Eastern and Southern Africa at the International Civil Aviation Organization (ICAO) told an aviation forum in Nairobi that the high standards has been validated by the continued progress in the ICAO safety audits taken in the last four years. "Four out of the five audited EAC states are among the 12 that are above 60 percent effective implementation score in the Eastern and Southern Africa," Kashambo said. "This translates in 80 percent of the audited states being above the Abuja target of ensuring that Africa's aviation accident rate be in line with global average by end of 2015," he said during the occasion of the official opening of the fourth EAC Symposium on Aviation Safety. The two-day symposium was organized by the Kenya Civil Aviation Authority (KCAA) in collaboration with the Civil Aviation Safety Oversight Agency (CASSOA), the administrative agency of the East African Community (EAC) that focuses on safe and secure development of aviation in the region. The regional aviation conference brought over 300 delegates from East Africa and across the world to review ways to improve aviation safety in the EAC. Kashambo said ICAO shares the region's desire to build resilient state aviation oversight systems that will ensure protection of the lives of the traveling public. He noted that the target of improved safety can only be achieved if the region fulfills certain prerequisites...

Passengers travelling between Nairobi and Mombasa are set to pay nearly double for rides on the Standard Gauge Railway (SGR) in a new fare regime to be effected in April. Travellers on the economy class will cough up Sh1, 200 up from the current Sh700. Those on the First Class, currently parting with Sh3, 000, are also set to pay more when new fares will be announced as SGR marks its first anniversary in May. SGR economy fares had initially been priced at Sh900 one-way between Mombasa and Nairobi before the government adjusted it downwards to a promotional Sh700 to stimulate consumer traffic. It has, however, emerged the subsidised SGR fares are inadequate to meet the train’s operational costs and its loan obligations to the China Exim Bank. Speaking exclusively to K24TV, our sister station, Kenya Railways managing director Atanas Maina said the current pricing is not sustainable hence the need for a review. He said the operator is still consulting on fares for different classes, with base expected to be around Sh1, 200. With the anticipated fare hikes, the train service will rake in a double their current revenues. The government hopes new fares will enable it to pay the China Exim Bank loan, which financed the first phase of SGR between Mombasa and Nairobi at a cost of $3.8 billion (Sh387 billion). As the operator reviews fares it also intends to improve consumer experience and boost amenities along the route. “There are still a few things we need...

Back in 1999, under what is known as the Yamoussoukro Decision, African countries planned to free their skies for air travel. Last Sunday the African Union (AU) took its first big step towards this goal, launching the Single African Air Transport Market (SAATM). The landmark announcement unveiled by Rwandan President Paul Kagame, the new chair of the AU, aims to transform intra-African air travel, lower prices and increase connectivity. The initiative has 23 signatories. There are 32 AU members still to come on board. Take off for African aviation Opening up the continent's skies could be a huge coup for African airlines, which would work under a common regulatory framework. It could also benefit intra-continental travelers who are often bound to illogical and time-consuming routes via Europe and the Middle East when flying between African countries. The agreement will also hope to increase the continent's global share of the aviation industry. The total population of Africa accounts for around 17% globally, but the continent's proportion of air travel passengers varies between 2-4%. In a statement, Rapahel Kuuchi, Vice President for Africa at the International Air Transport Association (IATA) said: "Greater connectivity will lead to greater prosperity." "An IATA survey suggest that if just 12 key African countries opened their markets and increased connectivity an extra 155,000 jobs and US$1.3 billion in annual GDP would be created in those countries." The approach follows in the footsteps of similar single market aviation agreements such as theEU's Internal Market for Aviation, which are generally recognized to...