Whenever the Kenya Revenue Authority (KRA) is mentioned, the first thought that comes to the mind of many people is purely revenue collection. Unknown to many, KRA has many other additional roles, which extend the tax agency’s mandate beyond revenue collection. These roles are spread out in the various departments, like the Customs and Border Control Department. The role of the Customs and Border Control Department also includes facilitation of secure legitimate trade, protection of our borders and promotion of national safety. This is achieved by ensuring that the export, import, transit and transhipment cargo cleared through our airports, ports and borders are not harmful to our residents and the environment. Kenya Customs has the responsibility to ensure seamless and expedited cross-border movement of cargo, services and passengers. Whereas port, border and airport cargo clearance is very clear, little is known about the Inland Container Depots (ICDs). Is the ICD in competition with the port? Is it a non-tariff barrier to international trade? The Inland Container Depot – Nairobi (ICDN) was rejuvenated in April 2018 following the construction of the Standard Gauge Railway (SGR), providing a seamless link to the Kilindini Port in Mombasa. There is another ICD in Kisumu, and an upcoming one in Naivasha. ICD Nairobi is a fully-fledged one-stop trade facilitation and logistics centre that brings together the operations of the Kenya Railways Corporation (KRC), Kenya Ports Authority (KPA), Kenya Revenue Authority (KRA) and the Kenya Bureau of Standards (Kebs). All these are lead government agencies for...

Regional clearing and freight forwarding firms are seeking to improve the professionalism of their operations through a model bill on clearing and freight forwarders industry in the East African Community region. This comes at a time, when there is need to promote economic diversification and industrialisation by linking economies and a need for a strong and organised customs clearing and freight forwarding community in the region. The bill was developed through an initiative by the Federation of East African Freight Forwarders Associations (FEAFFA), in partnership with the revenue authorities and Japan International Co-operation Agency. (JICA). Under the lead of the Federation of East African Freight Forwarders Association (FEAFA), a model bill on self-regulation was initiated and developed in collaboration with various stakeholders to overcome challenges that are hindering the industry. According to Fred Seka, president of FEAFFA, even though the industry has been championing professionalism through a number of activities such as training, code of conduct, regional accreditation framework, among others, there is need to self-regulate the industry. “Self-regulation is all about regulation of the professionals involved in customs agents and freight forwarders. As we all know, some challenges can’t be solved without having a specific legal framework put in place.” Clement Bukulu, the chairman, Rwanda Freight Forwarders Association also added that, the draft law (self-regulation) is an important mechanism for governing industry practises with multiple benefits all stakeholders and shareholders. “Establishment of mutual recognition arrangements in the East African Community region, enhancing professionalism, quick support and advocacy, enhancing trust...

Tanzania has received a $1 billion syndicated loan arranged by the Trade and Development Bank for infrastructure projects and is seeking an additional $500 million from the regional lender, the presidency said. The government said in 2016 it had agreed a $7.6 billion loan from China’s Export-Import Bank (Exim) to build a railway line that will link it to neighbours, but the funds were never disbursed. No reasons were given by authorities. “TDB has issued a $1 billion soft loan to the country and is now finalising procedures for releasing other additional loans worth $500 million for implementation of various development projects,” the presidency said in a statement late on Monday. East Africa’s third biggest economy wants to profit from its long coastline and upgrade rickety railways and roads to serve growing economies in the wider East and Central Africa region. Admassu Tadesse, TDB’s chief executive, said the bank was in discussion with the Tanzanian government for additional loans worth “hundreds of millions of dollars” to finance infrastructure projects, including a new railway. “We underwrote $500 million of that $1 billion and the other $500 million was mobilised and raised through some of our partners,” said Tadesse after meeting Tanzania’s president. “There is more on the table right now. We’ll be putting in several hundred million going forward.” In total, Tanzania wants to spend $14.2 billion over the next five years to build a 2,561 km (1,591 mile) standard gauge railway network connecting its main Indian Ocean port of Dar...

Kenya could be allowed to secure its own preferential market access for exports to the European Union if the regional Economic Partnership Agreement fails to take shape, EU has signaled. This comes amid continued delays by the East Africa Community(EAC) member states to ratify the EPA deal as a bloc, which would secure duty-free quota-free market access with the 28-member union. While Kenya and Rwanda signed the EPA in September 2016, with Kenya ratifying the pact the same year,Tanzania, Uganda and Burundi are yet to ratify the EPA. For the EPA to enter into force, the three remaining EAC members need to sign and ratify the agreement. The delay is threatening Kenya's free market access for its exports to Europe. EU ambassador to Kenya Simon Mordue yesterday said Kenya could be allowed to go ahead solo under the "variable geometry" provision, which allows certain members states to implement trade agreements faster than others or before others which are not ready. “Kenya is obviously very keen together with Rwanda to move forward and start this trading arrangement with European Union as quickly as possible because they full understand the benefits of this agreement,” EU ambassador to Kenya Simon Mordue said in Nairobi yesterday. “You come to us and send a signal that there is a wish to pursue variable geometry. This is something that the EU would look at very carefully and say how we would best be able to respond,” Mordue added. Tanzania in 2016 rejected the deal on claims...

A Kenyan specialty coffee auction has been launched in America, with a capacity of 38,000 tonnes to sell Kenya’s top coffee grades AA, AB and PB directly to the US with all the lots having attained over 84 points specialty coffee standard scores. The Zabuni Specialty Kenyan Coffee Auction, based in Nebraska, was officially launched by Kenya’s Cabinet Secretary of Trade, Industry and Co-operative Peter Munya. The CS highlighted that coffee roasters from North America would no longer have to travel to Kenya to bid for the beverage as they can get it at the auction and the new marketing platform will give the farmers control over their coffee. The first auction was undertaken which featured export coffee from smallholders and small estate growers from Nandi and Kiambu counties in Kenya, who appointed Kenya Planters Cooperatives Union their agent. Most of Kenya’s coffee is sold through the Nairobi Coffee Exchange with only 12 percent going through direct sales. According to Laban Njuguna, Chief Executive of Zabuni auction, the roasters who will be purchasing the coffee would know for certain that the farmer is fairly paid because the centre recognises traceability, competitiveness and transparency from the beginning to the end. “It’s about making sure the people that matter in the value chain get recognised and compensated for what they do,” said Laban Njuguna. Mr Munya said the government will continue giving support to the initiative through the formulation of appropriate policies and legal framework. The launch came ahead of the 2019...

INDUSTRIAL owners have welcomed the country’s decision to join regional markets while asking the government to continue putting enabling business environment for domestic goods to sustain stiff market competition. This was said in Dar es Salaam over the weekend during the annual symposium organised by the Confederation of Tanzania Industries (CTI) which aimed at analysing opportunities and challenges of the African Continental Free Trade Area (AfCFTA) on development on Tanzania. “CTI positively welcomes the AfCFTA, but all we need to do as a country and private sector is to put our house clear to welcome competition. Tanzanians need to change their mindset to buy locally produced goods instead of imported one as are almost of the same quality and international standards,” said Subhash Patel, the Chairman of CTI. He added that Tanzanians must be patriotic to buying locally produced products as they were promoting a big chain of supply and therefore adding circulation of cash in the nation’s economy. Mr Subhash said that AfCFTA and other market were of more economic value for they were boosting economy ensuring foreign exchange earnings and therefore the government must be ready to put support of the industrial policy and minimize costs of doing business. For her part, MS Farhiya Warsame from the Lasav industries limited advised that if the country’s industries were to compete in the AfCFTA markets, there is a need for simplifying production environment locally. She said that there were need of reducing costs of production and doing business and the...

Kenya is quickly losing its position as The East African Community (EAC) exports powerhouse, a regional trade report has shown. Nairobi-manufactured products are increasingly finding it difficult to compete with cheaper imports from China and India and those produced by regional rivals, shrinking Kenya’s share of exports to its EAC neighbours. Increase in counterfeits, non-tariff barriers (NTBs), lack of product diversification and high cost of production have also rendered Kenyan products less competitive in the market. The study by the EAC Secretariat, in partnership with TradeMark Africa, shows that Kenya’s exports to Uganda, Tanzania, Rwanda, Burundi and South Sudan are facing new threats posed by regional manufacturers who have upped their game in the production of similar products. The EAC Trade and Investment Report (2018) shows that Kenya’s exports to other EAC member states grew at a slower pace of 0.1 per cent in 2018 compared to a high of 6.1 per cent in 2017, largely due to increased efforts by regional peers in strengthening their manufacturing capacity to produce corresponding industrial products. According to the report, Kenya’s total exports to EAC Partner States have been on a downward trend for the past five years falling 11 per cent to $1.27 billion in 2018 from a high of $1.43 billion in 2014. The country’s exports to the region increased marginally to $1.273 billion last year from $1.272 billion in 2017. Among Kenya’s manufactured exports to EAC countries are processed foods, mineral products, chemical and chemical products, metals, pharmaceutical and botanical...

The African Continental Free Trade Area is a continental agreement which came into force in May 2019. It covers trade in goods and services, investment, intellectual property rights and competition policy. Of the 55 African Union member states, only Eritrea has yet to sign it. The immediate objective of the free trade area is principally to boost trade within Africa by eliminating up to 90% of the tariffs on goods and reducing non-tariff barriers to trade. In 2017, the exports and imports between African countries represented only 16.6% of Africa’s total exports. This figure is low compared with exports within other regions: 68.1% in Europe, 59.4% in Asia, and 55.0% in America. Proponents of the free trade area say that increasing intra-Africa trade will provide larger markets for African producers and encourage manufacturing. It will also help achieve a better connection between production and consumption. The United Nations Conference on Trade and Development argues that the phase of transition to the free trade area alone could boost intra-African trade by 33% and increase manufacturing in Africa. This line of argument is that free trade leads to industrialisation and structural change. But in my view it works the other way round: industrialisation leads to free trade. Industrialisation should come first Low intra-Africa trade is indeed an indication that African countries do not consume what they produce. But this is a problem of production (product focus), not trade. The export products of most African countries, which follow the colonial pattern, influence the...

Ethiopia vowed on Monday to remove barriers to investment in its mining sector, focusing efforts on minerals used in agriculture and construction which will help drive its industrialisation. Ethiopia, which has a mostly artisanal mining industry, wants to woo foreign mining companies to kick-start development of its vast mineral resources, a key part of its efforts to plug a large trade deficit and generate foreign exchange. Prime Minister Abiy Ahmed is shaking up several sectors in a liberalisation drive aimed at transforming Ethiopia into a middle-income country. “Our ministry will keep reforming to remove uncertainties that held back the development of the mining industry,” minerals minister Samuel Urkato said in a keynote speech to a mining conference in Addis Ababa on Monday. The government will give incentives to investors who develop minerals used in agriculture such as potash, a key ingredient in fertilizer, as well as construction minerals, a draft policy document seen by Reuters ahead of the speech showed. The ministry is still working out the details on tax and incentive policies, Samuel told Reuters, and the revised mining law would be announced by August next year. IDEAL NEW MINING DESTINATION? Ethiopia set out its stall as “Africa’s ideal new mining destination” at the conference in the Sheraton Hotel. Changes to its mining policies have been expected since February this year. Ethiopia aims to increase the mining sector’s contribution to GDP to 10% by 2030 from the current 3%. The government cut the corporate income tax rate for miners...

A digital platform specifically designed to address the information needs of women in business and connect them via a custom-built social networking tool was launched over the weekend in Kigali, Rwanda. The platform, known as 50 Million African Women Speak, was unveiled during the Global Gender Summit in the Rwandan capital. It primarily seeks to help economically empower women by providing a one-stop-shop for a wide range of financial and non-financial services that women need to start and grow successful businesses. The initiative which is accessible at www.womenconnect.org is implemented by the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and the Economic Community of West African States (ECOWAS). It will allow women in 38 African countries to find information on running businesses, accessing financial services, create business opportunities online and access training resources, ultimately contributing to their economic empowerment. “I certainly believe that the creation of this platform is a very practical way of speaking to the general agenda of empowering women. I think a lot has been said and now we have come to a stage where we have practical initiatives such as this one,” said COMESA Secretary General Chileshe Kapwepwe. Through a robust social networking functionality that has been embedded in the platform, women will have opportunities for peer-to-peer learning, mentoring and sharing information and knowledge, connecting via the web-based platform or through the 50 Million African Women Speak mobile app. The platform is touted as having the potential to unleash a dynamic...