The planned extension of the Standard Gauge Railway (SGR) to Kisumu has rekindled hope for regional trade as the lakeside city consolidates its market position as one of the leading business hubs in East Africa. Even though the SGR is targeted to be built up to the border town of Malaba, experts say linking Kisumu port to Mombasa is seen as an early landmark as it will allow cargo to be transported over lake Victoria to other East African states, making the SGR a more viable economic project. The SGR extension coincides with the construction of a lake port planned on the shores of Lake Victoria in Usare village, boosting trade with Kenya’s regional neighbours via Uganda’s Port Bell, Tanzania’s Mwanza Port with South Sudan via Jinja Port and Rwanda via Kimondo Bay. For decades, Kisumu port registered robust business helped by a reliable railway system and maritime vessels that ferried cargo to ports such as Mwanza and Bukoba in Tanzania and Jinja and Port Bell in Uganda. Locals say the modern container port is likely to turn the town into a hub for trade. This comes at a time when navigation of boats and fishing vessels has been constrained by hyacinth invasion in Lake Victoria. However, Kisumu port’s potential of receiving and processing over 4,000 tonnes of cargo to other East African countries including Tanzania, Uganda and Rwanda daily could be halved due to the water weed. Based on its location, Kenya Chamber of Commerce and Industry branch chairman...

The firm which started operations in Kenya in 2009, says the newly introduced engineering insurance segment will be very instrumental in helping it boost market share. Continental Re says that some huge infrastructure projects have not been adequately covered by local players. Newly appointed managing director Souvik Banerja said that they will be targeting the standard gauge railway and wind power projects. Plans are underway to extend the SGR from Naivasha to Kisumu. “These projects will all need expensive machines. They will surely need insurance services and we do not they that they have been adequately covered,” said Mr Banerja. In recent years Kenya has witnessed heightened construction and mining activities. In northern Kenya British exploration firm Tullow Oil is making discoveries that could make Kenya a major oil producer. Already the company has contracted Dubai-based Almansoori Petroleum Company to supply an Early Product Facility (EPF) at a cost of $10 million, to help it extract crude in South Lokichar in Kenya’s north, even as uncertainty surrounds the Early Oil Pilot Scheme. The deal with the Dubai company was signed early this year as part of the wider processes in the run up to early production, which has run into trouble after the government shelved it citing logistical challenges. On the other hand, the construction of the LAPSSET project is gaining momentum after construction of the first three terminals of the new Lamu port reached 40 per cent completion this week. LAPSSET project director Sylvestre Kasuku said the first terminal will be...

The governments of Kenya and Japan have signed a Sh35 billion loan facility for construction of phase two of the second container terminal at the port of Mombasa – paving the way for the launch of a project that seeks to boost efficiency at the busy port. According to the Kenya Ports Authority managing director Catherine Mturi, the signing of the deal will enable the contractor to kick off works on site by January next year. “We already have the Sh35 billion financing from the Japanese government. We are now in the tendering process but construction must commence by January 2018,” Ms Mturi said in an interview last week. The deal comes exactly a year after the September 2016 completion of phase one of the second container terminal project, which raised Mombasa port’s cargo handling capacity by 550,000 Twenty-Foot Equivalent Units (TEUs). Phase two of the second container terminal is, on the other hand, expected to provide an additional capacity of 450,000 TEUs. The initial phase of the project was built at a cost of Sh28 billion. The new terminal which is being built on 100 acres at Kilindini Harbour is expected to ease congestion at the Mombasa port, making the facility more competitive amid growing competition from the port of Dar es Salaam in neighbouring Tanzania. On completion, the facility will have three berths with quay lengths of 230, 320 and 350 metres. The larger berths will handle Panamax container ships of 20,000 dead weight tonnes (DWT) and Post Panamax...

The Comorian expert from Anti-Piracy Unit of the Indian Ocean Commission Mr Hassani Ahalada Soilihi said during the Maritime Security programme (MASE) for the Eastern and Southern Africa and Indian Ocean (ESA-IO) region that States need to strongly be committed and foster close collaboration with other international organizations and operational agencies such as UNODC, Atlanta and Interpol to curb the situation. “A country cannot address by itself maritime security issues. Regional and international cooperation are essential to effectively combat piracy,” he said. The MASE was presented at the Ministerial Conference on Fisheries Cooperation among African States bordering the Atlantic Ocean (COMHAFAT). Held under the theme of “Maritime piracy off the African Atlantic coast: extent and approach for a more effective fight”, the workshop aimed at providing a thorough review of maritime insecurity issues and to get an overall feedback of the initiatives undertaken by each regional organisation to combat piracy. Experts who represented their countries came from COMHAFAT, the African Union, the Indian Ocean Commission (IOC), the African sub regional organizations (CCPO,COREP), the Organization for Economic Cooperation and Development (OECD), universities and maritime training institutes as well as experts in operational fight against maritime piracy. Furthermore, apart from sharing experiences, the meeting enabled participants to have an insight of maritime piracy in an economic, social and legal perspective. The organizers also stressed on the fact that it was vital to implement adopted strategies and activate appropriate mechanisms to ensure safety and security in West African ocean. Source: Daily News

Rwanda’s urban Consumer Price Index (CPI) increased to 3.8 per cent on annual basis in September, from 3.2 per cent registered the previous month, the statistics body has indicated in its monthly report. The increase was mainly due to 8.3 per cent rise in prices of food and non-alcoholic beverages, and 2.4 per cent and 1.5 per cent increase of housing, water, electricity, gas and other fuels, and transport, respectively, according to the National Institute of Statistics of Rwanda CPI report released yesterday. Rwanda uses urban CPI to measure the average change over time of goods and services bought by households. The inflation rate was up 1.1 per cent month-on-month, while the annual average rate between September 2016 and September 2017 was 6.1 per cent. Rural households had to dig deeper into their pockets last month as the cost of goods and services rose by 8.9 per cent year-on-year, and increased 1.9 per cent on a monthly basis, both of which are higher than what was recorded in urban centres. The underlying inflation rate, excluding fresh food and energy, decreased by 0.1 per cent when compared to August 2017, but was up 2.6 per cent year-on-year. The Rwanda CPI increased by 7.1 per cent on an annual basis, and increased by 1.5 per cent on a monthly basis, NISR indicates. Source: New Times

The coastal breeze and picturesque views of Kenya’s Indian Ocean meets the busy port of Mombasa where heavy machinery awaits to ferry tonnes of cargo. Suddenly, the fresh and humid air is met with choking dust and screeching sounds of cranes as cargo is offloaded from the ship. Most of the shipment to Kenya includes food stuff, machinery, raw materials just to mention but a few. They are sealed and locked into containers ready for transportation to East African countries. Kenya Ports Authority (KPA) notes its Mombasa Port has the capacity to handle over 1.2 million containers annually and this number could be higher going by the several expansion works visible at the Port. Aside from this number, the challenge has been on how fast these goods are cleared for transportation to other regional countries. There is an average of 300 heavy commercial vehicles that leave Mombasa destined to East African countries on a daily basis. “Lift, pack, move… lift, pack, move” paints the picture of clockwork operations at the port. Our attention is drawn to these containers that have been a focus in the recent past. Most of the goods contained here do not reach their destination either due to highway insecurity, accidents or theft. A team of tax officials donning their usual white, army-like uniform are busy affixing a magnetic gadget to containers. This is their solution to the perennial problem facing transporters in East Africa. “A team at the gate identifies high risk goods in what we...

This was raised by the delegates who attended the 7th African grain trade summit at White Sands Hotel in Dar es Salaam. “Africa still has challenges of food insecurity. Armyworm has continued to persist even with interventions by governments and development partners. We need to rethink new horizon how to tackle it,” Gerald Masila, the executive director of Eastern African Grain Council (EAGC) told participants. Inmi Patterson, the charge d' affairs of United States embassy in Dar es Salaam said loss due to army worm is a threat to grain trade. Masila who was speaking during the high level media dialogue outlined key issues that can boost grain trade and ensure food security among them are supportive policies instead of protectionism so that farmers can compete  globally, transparency in  the process of drawing prices, having structured grain trade and tax incentives as well as considering food value chains inclusiveness. The executive director was supported by the deputy head of mission Embassy of Sweden, Ulf Kallstig who pointed out that partner states need to make policies which are coherent to facilitate grain trade. The summit organized by EAGC and supported by United States Agency for International Development and East Africa Investment Hub attracted researchers, policy analysts,  grain experts and others. The deputy secretary general of East African Community (EAC), Christophe Bazivamo, observed that the EA Council recognizes the role EAGC plays in promoting grain trade. “Integration is about security and prosperity. Its business driven and peoples centred,” Bazivamo said. He implored experts...

High trade facilitation costs and poor logistics services are hampering foreign direct investment and growth in the east African region, a senior Kenyan official said on Tuesday. Principal Secretary for Trade Chris Kiptoo said smooth logistics not only reduces the cost of imports but is vital to producers to be able to participate in global production circles and eventually move into new business. "Improving logistics includes several dimensions such as enhancing logistics capabilities, the development of rehabilitation of physical infrastructure, and the streamlining of trade-related procedure," said Kiptoo during the launch of the 2017 logistics performance survey in Nairobi. The report, released by the Shippers Council of East Africa (SCEA), said the climate of conducting business has improved in the region, thanks to right policy choices, the rise in intra-regional trade, and an enabled private sector. The report, which analyzed the performance of trade logistics with respect to indicators of time, cost and complexity against those of the world's leading trade hubs, indicates that reforms initiated by the region's member states are finally paying off. "We will use the indicators to interpret the performance of the logistics chain, reveal to both policy makers and businesses the full extent of bottlenecks, and propose appropriate redress measures," Gilbert Langat, the CEO of the Kenya Shipper's Council, said during the commissioning of the study. Road freight costs have fallen "due to improvements made in road infrastructure, reduction in the number of police checks and enhancement of weighbridge efficiencies through automation," Langat said. "However,...

East Africa’s free common market is not free at all. Seven years after internal custom tariffs were scrapped, a number of protectionist policies continue to pop up as countries try to limit the entry of foreign goods in favour of promoting local ones. This has dampened the spirit of a free regional market and raised questions over whether the East African Community is working. At a one-day private public sector stakeholders dialogue on strategies for enhancing regional compliance for national laws, which was held in Kampala on September 12, entrepreneurs raised concerns on the increasing level of business discrimination within the East African bloc. They argued that whereas Uganda is promoting the Build Uganda Buy Uganda (BUBU) policy, government was not helping local manufacturers penetrate the national and regional markets. While giving a recent incident she encountered at the Rwanda-Uganda border, Prudence Ukkonika, the proprietor and manufacturer of Bella Wines, narrated how her goods were confiscated and held for several days, and how she was forced to pay money far beyond the cost of the goods in order to have them released. “Every meeting I go to, they are encouraging people to export. But it is very different from the situation on the ground. They talk much about this but they don’t act. If other countries don’t want to take our goods, then let them tell us,” Ukkonika said. Ukkonika said Uganda’s BUBU policy has not helped local manufactures attain their dream. “Every time they say BUBU,... BUBU... but BUBU...

A leading Tanzanian cooking gas vendor saw its share market in Kenya shrink by 4.7 percentage points in the second quarter of the year as an import ban from its home country into Kenya took a toll. Latest data from the Petroleum Institute of East Africa (PIEA) shows Lake Gas commanded 17.6 per cent of the Liquified Petroleum Gas (LPG) market in the three months ending June, second to KenolKobil with 18.4 per cent share. In March, it held the largest share at 23.1 per cent, having jumped from 14.1 per cent in December 2016. The firm had not featured on the list of PIEA’s top gas suppliers as recently as September 2016. It is owned by Dar tycoon Ally Etha Awadh who recently acquired Kenya’s Hashi Petroleum retail fuel business, although this did not include Hashi’s gas business. Lake Gas has been selling its branded gas locally, but also supplies independent re-fillers, cutting the retail cost substantially. Kenya banned gas imports through its border with Tanzania in April saying it wanted to eliminate illegal filling plants that are deemed a safety risk. Tanzanian border Before the ban, it was estimated that 2,000 metric tonnes of gas were coming into the country through the Tanzania border per month. KenolKobil’s  rise to the top of the gas market has come after the firm grew its share by 4.4 percentage points in the second quarter, while French oil giant Total slipped one place to third at 14.7 per cent. Vivo gained a percentage...