The United States Agency for International Development (USAID) Hub in east Africa and the Kenyan ministry of industry, trade and cooperatives recently joined Kenya’s private sector to review and validate a new Kenya National African Growth and Opportunity Act (AGOA) strategy that aims to double its 2016 figure of exports to the United States by 2025. Kenya nearly doubled its exports to the United States under AGOA from $225 million in 2010 to $389 million in 2016. Apparel is mainly exported under AGOA. The new national AGOA strategy outlines updated priority actions for Kenya to diversify its export portfolio, according to an USAID press release. The new strategy is the result of a supply-side and end-market analysis provided by the USAID East Africa Trade and Investment Hub at the invitation of the Kenyan Government. The apparel sector under AGOA is the largest contributor to job creation in Kenya currently credited with supporting over 200,000 full-time jobs. It is also Kenya’s highest earning sector, accounting for 85 per cent of its $389 million in 2016 AGOA exports. The USAID Hub is also working with the Kenyan ministry on a ‘East Africa Cotton, Textile and Apparel Workforce Development Initiative’, a collaborative effort with the private sector based on a partnership agreement between the Hub and the American Apparel and Footwear Association. The partnership ensures US brands and retailers’ goods are manufactured in accordance with best business practices and operations in East Africa, producing a win-win for trading partners. (DS) Source: Fibre 2 Fashion

Penny Mordaunt has hailed the “incredible power of technology to deliver aid in new ways” on her first official visit to Kenya as International Development Secretary. During her visit, Ms Mordaunt saw how UK aid is supporting vulnerable communities in the north of the country devastated by East Africa’s drought. In Kenya’s capital Nairobi, Ms Mordaunt also heard how UK support for innovative programmes is helping to create jobs for a rising population. Ms Mordaunt was also in the country to hear from British businesses about how new technology has helped them tap into the Kenyan market. The UK is the fifth largest exporter of goods to Kenya and trade between the two countries is worth over £1 billion annually. Innovative technology, supported by DFID, is helping Kenya build resilience to climate challenges, including drought, and to build a modern economy for the future. During her visit the International Development Secretary: Saw how UK aid-supported research is helping to power low-cost insurance for livestock herders in drought-prone parts of Kenya. The research makes use of already existing satellite technology by NASA to provide images of vegetation cover. This ensures timely insurance pay-outs are made correctly and quickly if cover levels drop. DFID both backs the research and supports private sector insurers to provide it to local herders. Set out further UK aid support to the Hunger Safety Net Programme – an innovative cash-transfer scheme bringing together biometric technology and mobile money. This is helping more vulnerable households and supporting the...

Ugandan President Yoweri Museveni will tomorrow officially open the first session of the fourth East Africa Legislative Assembly. A programme seen by the Star yesterday indicates 54 EALA lawmakers from six East African Community member states were scheduled to arrive in Kampala, Uganda, yesterday. They will conduct House business until February 9. Museveni, who is the chairman of the Summit of East Africa Community Heads of State, will deliver the State of EAC Address in the House presided over by Speaker Martin Ngoga. On Monday next week, the MPs will debate motions before establishing and electing chairpersons of committees. They include Committee on Legal Rules and Privileges, Committee on Communication, Trade and Investment, Committee on Agriculture, Tourism and Natural Resources and Committee on Accounts. Others are Committee on Regional Affairs and Conflict Resolution and the Committee on General Purpose. After the election, the committees will start sittings. Chairman of the Kenya chapter at EALA Simon Mbugua yesterday told the Star they are looking forward to effectively representing the country in the second meeting of the Parliament’s first session. On February 7, the East African Monetary Institute Bill, 2017 and East African Community Statistic Bureau Bill, 2017 will be introduced in the House for first reading. The plenary will also debate Museveni’s address and on February 8, the East African Community Oaths Bill, 2017 will be introduced for its first reading. Source: The Star

Britain will continue to grant Kenyan products duty-free access to the UK under Economic Partnership Agreement, it has said. Secretary of state for International Development Penny Mordaunt assured Kenya that Brexit will cut current trade barriers and strengthen bilateral economic relationship and long term prosperity of both countries. “We now have an opportunity to do more with Kenya to open up trade around the world. This is already an extraordinary trading partnership,” she said. UK agreed to support president Uhuru Kenyatta's big four priorities including manufacturing, affordable housing, universal health care and food security. 'We have agreed on a number of new initiatives aimed at strengthening the relations between the two countries. This will underpin mutual activities to attract investment, increase access to capital, deepen business links, create jobs for millions and support the delivery of president Kenyatta's four priorities,'' said Mordaunt in a joint press statement The meeting which was organised by the Ministry of Foreign Affairs and chaired by National Treasury cabinet secretary Henry Rotich saw UK welcome Kenya's confirmation to participate in the Commonwealth Heads of Government Meeting (CHOGM) to be held in April this year. The two countries will also co-host with the International Disability Alliance, the Global Disbility Summit in London in July Other government officials attended the meeting includes Health CS Cleopa Mailu and his East African Community counterpart Phyllis Kandie. Others were principal secretaries Monica Juma of Foreign Affairs and Cris Kiptoo from the State Department of Trade in the Ministry of Industry,...

Phase one of the Standard Gauge Railway connecting Mombasa and Nairobi is already operational, having come into service on June 1, 2017. The new service has revolutionised travel between the two cities. Passenger trains operating between the two points have not only reduced the cost, but have also cut down the time it takes to travel from Mombasa to Nairobi and vice versa to only four hours. Equally important, the first SGR cargo delivery to Nairobi from Mombasa was made early this month, signalling the seriousness that the Government attaches to its flagship project that, upon completion, will have immense value for Kenyans and the economy; creating jobs, reducing congestion and delays at the port of Mombasa, easing passenger and freight transportation as well as lowering cost. However, challenges still abound, and mostly revolve around the acquisition of land along the projected route. Indeed, some rights group went to court seeking to stop the construction of the railway line citing environmental concerns and the possible negative effects of SGR on wildlife as its route runs through the Maasai Mara. Concerns have been raised by the Government over the high cost of land between Nairobi and Naivasha that could cost the government Sh15 billion, which Kenya Railways Managing Director Atanas Maina said was unsustainable. Despite these challenges, the Government has announced SGR construction to Olkaria will continue. Completion time is expected to be 36 months. Outstanding matters of land acquisition need to be cleared amicably in order that people who have...

Widow Ahatho Turuga lost 20 of her goats to drought early last year, but the shopkeeper is planning to reinvest in her herd once she has saved enough money. "I think I will start with four goats and see how it goes," she said, rearranging soap on the upper shelf of her shop in Loglogo, a few kilometers from Marsabit town. She recalled how frequent droughts had left her on the edge of desperation, struggling to care for six of her own children and four others she adopted after their mother died. But Turuga is finding it easier to cope since taking part in a rural entrepreneurship program run by The BOMA Project, a nonprofit helping women in Kenya's dry northern areas beat extreme poverty and adapt to climate change. The U.S. and Kenya-based organization provides two years of business and life-skills training, as well as mentorship. Groups of three women are each given a startup grant of 20,000 Kenyan shillings ($194.55) and a progress grant of 10,000 shillings to set up a business. After graduating, they carry on operating their businesses — mainly small shops selling groceries and household goods — either together or on their own. The women also club together in savings groups of at least 15 people, who put away anything from 400 shillings a month each, and make loans to members at an interest rate of 5 to 10 percent. Habibo Osman, a mother of five who was in the same group as Turuga, has...

EAC partner states have been accused of being slow in disbursing their financial commitments, which calls for tough measures regarding financing activities of the Community. “The reality of the matter is that partner states are slow in disbursing their commitments, as at the end of December (2017) only 40% had been disbursed, this calls for serious prioritising of the available resources and ensure critical activities are implemented,” the Secretary General of the East African Community (EAC), Amb. Liberat Mfumukeko said. He emphasised the need for staff of the Community to avoid wastage at all costs saying “tough times call for tough measures.” One of the cost cutting measures he cited is that meetings should start on Tuesdays and should not last for more than four days. “This summit will be addressing the issue of alternative financing mechanisms and I can assure you that a lasting solution will be found,” the Secretary General said in his first address to staff, according to the statement posted  yesterday (Wednesday). In his address highlighting achievements for 2017 and what still needs to be done Mfumukeko said, “I must admit that 2017 was a challenging year for all of us at EAC, and especially the first and second quarters of financial year 2017/18 where we experienced serious financial challenges.” He thanked the staff for bearing and coping with these challenges. He said he was touched that staff could use their own resources to travel and support EAC activities for reimbursement when funds become available. “This...

Clearing agents and cargo transporters have asked the Kenya Railways Corporation to provide 30 days of free storage at the Nairobi inland container depot (ICD). The request is part of a raft of measures being proposed by the Kenya International Freight and Warehousing Association (KIFWA) to resolve the logistical hiccups that have seen Kenya Railways stall the use of the cargo service on the standard gauge railway. Launched in December, the SGR cargo service has been slow to take off over lack of cargo to transport as sector players looked for better customer service. KIFWA has also asked for assurances on the specific timeliness by the Kenya Ports Authority and the Kenya Revenue Authority on how long it will take from loading into the wagon, arrival and clearance to minimize operating costs. “The directors resolve to be given at least 30 days storage free days at ICD to clear & evacuate their cargo & be assured of similar benefits as the ones they have been enjoying at Mombasa’s container freight stations (CFS),” KIFWA Chairman William Ojonyo said. KIFWA had invited representatives from KRA and KPA, who skipped the meeting seeking to get a working solution. Mr Ojonyo said that the four days free storage time given at the SGR terminal may not be enough and could lead to higher demurrage fees due to inefficiency in clearing procedures at the ICD. The government plans to move 40 percent of cargo from the port of Mombasa using the SGR. A 20-foot container...

The East African Legislative Assembly (EALA) is scheduled to resume business next week by holding its Plenary Session in Kampala, Uganda. The Plenary from January 22nd 2018, through to February 9, 2018, is the second meeting of the First Session of the 4th Assembly. President Yoweri Museveni who is the chair of the Summit of EAC Heads of State, is expected to deliver the State of EAC Address to the Assembly. The State of EAC Address is an annual address delivered by the sitting EAC Summit Chair and it sets the momentum and impetus for the integration process by reflecting on general policies that relate to the Community's progress while outlining the strategic challenges which require attention. The assembly which is to be presided by the new Speaker Martin Ngoga shall during the three-week period further discuss several legislative business including: Debate three key Bills; the EAC Oaths Bill, 2017, the EAC Statistics Bureau Bill, 2017 and the EAC Monetary Institute Bill, 2017.  Source: All Africa

Economic growth in Africa picked up steam last year and is set to accelerate strongly in 2018, but “massive investments” are needed in infrastructure, the African Development Bank (ADB) said Wednesday. Growth in Africa rose from 2.2 percent in 2016 to 3.6 percent in 2017 and is likely to rise to 4.1 percent in 2018 and 2019, the ADB said in its annual report, African Economic Outlook. “Overall, the recovery in growth has been faster than envisaged, especially among non-resource–intensive economies, underscoring Africa’s resilience,” it said. “The recovery in growth could mark a turning point in net commodity-exporting countries,” it added. Last year’s spurt has a range of explanations, including a recovery in prices for oil, which helped petroleum exporter Nigeria, Africa’s most populous country. East Africa is the most dynamic region in terms of growth: 4.9 percent in 2016, which rose to 5.6 percent in 2017, and to a projected 5.9 percent in 2018 and 6.1 percent in 2019. However, across the continent job creation did not rise in lockstep with growth, lagging by 1.4 percent. Woman and young people, aged 15-25, are those who have been most affected by the slow growth in employment. To generate jobs for the 12 million young people entering its workforce each year, Africa must take a fast-track to industrialisation, the ADB said. But key obstacles in infrastructure remain, including energy, water and transport, as well as health, education, security and administrative capacity. “The continent’s infrastructure needs amount to $130–170 billion (106-139 billion...