THE RECENTLTY inaugurated ne-Stop Border Post (OSBP) facility at Kagitumba at the Rwanda-Uganda border has reduced clearing time from five to 3.45 hours. During his trip to Nyagatare District on Monday, President Paul Kagame visited the border. The OSBP started operations in December 2015 and has already seen a 25 per cent reduction in clearing time, according to TradeMark Africa (TMA). TMA, with support from UKAID and the Canadian government, funded construction of the OSBP at the tune of $11.3 million. The border post boasts of a customs and migration block, inspection and warehouse block, sheltered parking yards, internal roads, among others. Speaking to The New Times, Eric Kabeera, head of communications and marketing at the Private Sector Federation (PSF), said Kagitumba border is a gateway for Rwanda’s exports and imports and the OSBP is a prolific initiative that facilitates doing business between Rwanda and other regional countries. “The OSBP has significantly reduced the time traders used to spend at the border by 25 per cent from five hours to 3.45 hours and this is a great achievement for the business community,” he said. “The OSBP eliminates bureaucracy at the border and enhances efficiency and effective movement of goods and services.” An OSBP is a one-stop form of border crossing point jointly managed by countries, with migration officials from both neighbouring countries sitting under one roof on either side of the border. This allows travellers to stop only once, thus eliminating double clear once. In a statement, TMA said time...

A Tanzanian cabinet minister said on Tuesday the government will next month start construction of a four million-US dollar inland container depot (ICD) in Coast region to decongest the Dar es Salaam port and improve efficiency. The Dar es Salaam port is busy and faces congestion as it serves landlocked countries of Zambia, the Democratic Republic of Congo, Rwanda, Burundi and Uganda. Makame Mbarawa, the east African nation’s Minister for Works, Transport and Communication, said the ICD will be constructed in 500 hectares of land and will be completed in nine weeks. He was speaking after he had witnessed the signing of an agreement to implement the ICD project between the Tanzania Ports Authority (TPA) and Suma JKT of the Tanzania National Services. “Once the project is completed, we expect an accelerated movement of goods and containers from the Dar es Salaam port to the ICD, something that will decongest the port,” he said. Mbarawa said plans were also afoot to widen and increase depths of berths in the Dar es Salaam port and construct a new berth in Mtwara port to enable large vessels to dock. Mbarawa said the next plan for the government was to construct a 300-meter berth at the port of Mtwara that would enable large ships to dock. The project would be followed by another project to construct a 300-meter long berth at the Dar es Salaam port to specifically service imported vehicles. “We are also planning to expand berths number one to seven to...

Kenya Railway Corporation received 60 general cargo wagons imported from China with the next consignment of 150 flat wagons expected on February 20. In statement, KRC Managing Director Atanas Maina said the 60 wagons are part of the 1,620 wagons which will be used for movement of cargo. “Kenya Railways is very pleased that the rolling stock has started to arrive 106 days to the launch date which gives the corporation reasonable time to start testing and commissioning in readiness for trial operations as we bring on board the rail operator on 1st June 2017,” said Maina. Kenya Railways has so far received eight freight haulage heavy duty locomotives for mainline use out of the total expected 43. The locomotives that have been received include two shunting locomotives, two passenger locomotives and four freight locomotives. A total of 32 passenger coaches have been imported already. Maina said that the project is now in the final phase of construction and will soon be ready for operation. He stated that the delivery of the locomotives and rolling stock is an important component for the SGR project implementation and that the Corporation is right on track. “The wagons received today will play a vital role in enhancing transportation of bulk cargo in the country and will provide the kind of service that complements the existing demand.” President Uhuru Kenyatta is expected to officially launch the SGR operations on May 31, according to the Transport Ministry. Maina said once the testing is completed they...

IN SUMMARY Transport investors see a ruse that has been carefully designed to conceal their future losses, a mystery that is already covertly redefining rules of competition. Truckers were the first group of investors to strongly voice their opposition against the SGR when the government first mooted the idea nearly six years ago. Data from Kenya National Bureau of Statistics show a decrease in the number of new vehicle registration for trailers last year. Official government information on SGR estimates that cargo transportation by road will decrease to 50 per cent from the current 95 per cent. Forget about a rosy picture where speed combines with efficiency in the cargo haulage to cut production costs as painted by government officials – and to some extent, private sector players. To a number of transport sector investors, the period after June 1, the date chosen by government for rollout of the first phase of Kenya’s standard gauge railway (SGR) represents an apocalypse of some sort. They see a ruse that has been carefully designed to conceal their future losses, a mystery that is already covertly redefining rules of competition even as the rest of the economy prepares to take a leap of faith. Chiraz Yusuf, managing director of Ocean Engineering, a manufacturer of steel trailers and truck bodies in Mombasa, believes his firm is already reeling from the shock of SGR. “The projection that SGR will cut the travel downtime from Mombasa to Nairobi has already put doubts on cargo business and...

IN SUMMARY Sudan is Kenya’s fifth largest tea market, importing 27 million kilos of the beverage worth Sh5.1 billion last year A number of restrictions in recent years have lowered the competitiveness of Kenyan tea and posed a threat on the trade. Kenya is the leading exporter of black tea in the world, selling 95 per cent of its tea in the global market. Kenya’s tea exports to Sudan have received a boost after consignment inspection fees were reduced by three quarters and the US’ lifting of sanctions — which were delaying payments — on the Horn of Africa country. Sudan has been levying an inspection fee of Sh82,800 ($800) on every consignment of tea originating from Kenya, subjecting exporters to high costs of doing business. The two countries have however reached an agreement which will see Sudan slash the cost of tea inspection by 75 per cent to Sh20,700, head of the tea directorate Samuel Ogola has announced. The directorate said that Kenyan exporters incurred a cost of Sh155 million ($1.5 million) between January and December when the directive on mandatory inspection of their tea was in force. “The Sudanese government has agreed to cut down significantly on the amount that they charge our tea on inspection, this comes as a relief to traders who have been incurring high costs,” said Mr Ogola. Additionally, the recent lifting of sanctions that had been imposed on Khartoum by America has also boosted sales of the commodity. Timely payments Mr Ogola said...

US $11.3 million invested in the construction of Kagitumba One-Stop Border Post (OSBP) facilities which includes Customs and Migration block, Inspection and Warehouse block, sheltered parking yards, internal roads TradeMark Africa funded the construction with support from UKAID and the Government of Canada. An Integrated Border Management System including computers and their accessories, internet, CCTV cameras, laboratory equipment, and development of OSBP procedures enables One Stop Controls. Construction started in May 2013 and operations officially commenced in December 2015. Clearing time through the Kagitumba-Mirama Hills border already reduced by 25% from 5 hours to 3:45 hours, by March 2016. Time reductions expected to go up to 30%. At peak performance, the OSBP at Kagitumba is expected to afford border users an estimated 30% time savings and attract 60% of Northern Corridor traffic. Kagitumba, Rwanda, February 13th 2017: H.E President Paul Kagame today visited the newly operational One Stop Border Post (OSBP) facilities at Kagitumba, Nyagatare district at the border between Rwanda and Uganda. The OSBP started operations in December 2015 and has already resulted in a 25% reduction in clearing time from 5 hours to 3.45 hours. TradeMark Africa (TMA) with Support from UKAID and The Canadian government funded the facility. The visit was part of President Kagame’s trip to Nyagatare district. An OSBP is a “one stop” form of border crossing point jointly managed by neighbouring countries, with officials from host and neighbouring country sitting under one roof on either side of the border. This allows border users to stop only once at the country of destination, where their travel or other documents are...

Kenya Railways yesterday received the first batch of wagons that will be deployed on the Standard Gauge Railway (SGR) line. The consignment of 60 wagons arrived at the Port of Mombasa on February 10 aboard two ships and was offloaded yesterday under the supervision of SGR contractor China Road and Bridge Corporation, Kenya Railways engineers and the project supervisor, TSDI-APEC-EDON Consortium (TAEC). The consignment is the first batch of 1,620 wagons that will be used for movement of cargo between Mombasa and Nairobi. Kenya Railways lauded the wagons’ arrival, saying coming 106 days to the project’s launch on June 1, it gives them reasonable time to start testing and commissioning them. Kenya Railways has so far received eight freight haulage heavy-duty locomotives for mainline use out of the expected 43. Managing Director Atanus Maina said the project is now in its final phase of construction, and will soon be ready for operations. Source: Standard Media

NAIROBI (Xinhua) -- Slovak President Andrej Kiska is due in Nairobi on Monday for a three-day state visit to Kenya to seek ways of increasing trade and enhancing bilateral ties, a Kenyan official said on Sunday. State House spokesman Manoah Esipisu said this will be the first time a sitting Slovak President is making this visit. "Kenyan businesses will be looking to leverage the Slovak Republic’s areas of relative strength as the country looks to expand its basket of trading partners," Esipisu told journalists in Nairobi. The Slovak Republic is a high-income advanced economy with one of the fastest growth rates in the European Union. The economy has mainly been driven by Foreign Direct Investment (FDI). The country’s GDP is 138.277 billion U.S. dollars (2015 estimates) and GDP per capita stands at 25,525 dollars (also 2015 estimates), according to Kenyan government statistics. Esipisu said the Tripartite Free Trade Area (TFTA) has created a seamless market from South Africa’s Cape Town to Cairo, Egypt. "President Kenyatta will also make clear that the continent of Africa is also working towards consolidating its economies into a large Continental Free Trade Area therefore providing more business opportunities," Esipisu said. He said the Kenyan leader has paid state visits to dozens of countries since he came to office, and received a galaxy of global leaders here in Nairobi. "Kenyans are now seeing the fruits of these years of engagement with partners, with high-impact investments such as the re-starting of assembly plants for German and French...

In Summary Mr Joho said the Jubilee administration has failed to correct historical injustices in the Coast. The governor added that the recent tours by Jubilee leaders in the Coast region will not sway locals. Governor Joho declared that his presidential ambitions for 2022 are still alive. Mombasa Governor Ali Hassan Joho has accused the Jubilee administration of creating an employment crisis in the Coast region by establishing a dry port in Naivasha. Mr Joho said it does not make economic sense to create a dry port when there is a sea port in Mombasa. “We will not cease from opposing any move aimed at taking away port services from Mombasa to Naivasha,” he said. He added that the inland terminal will transfer key services to Naivasha causing massive job losses in Mombasa. Speaking on Saturday in Gazi, Kwale County, Mr Joho said the Jubilee administration has failed to correct historical injustices on the Coast. He questioned why the President would write off a Sh2.3 billion debt owed by coffee farmers in his backyard but ask the Waitiki squatters to pay for their title deeds. The governor added that the recent tours by Jubilee leaders in the Coast region will not sway locals. “This is not a Jubilee zone and we will not vote for Jubilee. Jubilee has no room here,” he said. HISTORICAL INJUSTICES He claimed that land problems in the Coast region require a comprehensive approach that addresses the origins of historical injustices. At the same time, Governor...

By: JAMES ANYANZWA. The East African Community has formed a 25-member taskforce to revise the region’s Common External Tariff (CET) and fine-tune the existing rules of origin to boost intra-regional trade and attract new investments to the bloc. The taskforce comprises four experts on tariffs, fiscal policy, trade and statistics from each of the five member countries — Kenya, Uganda, Tanzania, Rwanda and Burundi — plus one representatives from the private sector, notably associations of manufacturers or chambers of commerce from each of the member states. The timelines for the completion of the exercise have also been revised from July to September 2017. The EAC Council of Ministers agreed that the 12-year-old CET has failed to live up to the expectations of the changing business environment with some member states and manufacturers blaming the three-band tariff structure for loss of revenue and a drop in intra-regional trade. The current CET is based on three bands of 25 per cent for finished goods, 10 per cent for intermediate goods and 0 per cent for raw materials and capital goods, with a limited number of products under the sensitive list that attract rates above the maximum rate of 25 per cent. Kenya hopes to rally other EAC member states to increase the tariff bands from three to four to be responsive of the needs of industries that import industrial inputs. “The dynamics in the region have changed and therefore there is a need for the CET to be reviewed to reflect the current...