Issue 29 - Jan-Mar 2014

A MAGAZINE OF THE STATE DEPARTMENT OF EAST AFRICAN AFFAIRS, MINISTRY OF EAST AFRICAN AFFAIRS, COMMERCE AND TOURISM

Kenya Assumes EAC Chair...

...as the Monetary Union Protocol is signed

MINISTRY OF EAST AFRICAN AFFAIRS, COMMERCE AND TOURISM Contents

A new beginning as Jumuiya News is a magazine of the Ministry of East 5 the Monetary African Affairs, Commerce and Tourism. It is published quarterly by the State Department of East African Affairs, Union Protocol Ministry of East African Affairs, Commerce and Tourism, located on the 16th fl oor of Cooperative Bank House, Haile is signed Sellassie Avenue, P.O. Box 8846-00200, City Square . Tel: 020-2245741/2211614 • Fax: 020-2229650 Email: [email protected] • Website: www.meac.go.ke EDITORIAL BOARD Patron Other Contributors: Mwanamaka A. Mabruki Eliazar Muga Establishment Julius Mwabu Chair Peter Njoroge of One Stop Mr. Alfred Kitolo Lily Mwanjila 12 Border Posts Tabitha Masinjila Editors: Benard Mwendwa set to cut Cross Kaplich Barsito Mark Ogot Beatrice Kung’u Juma Wakhungu Border Trade Raphael Mbatha Secretary: Effi e Omondi Costs Michael Okidi Ann Nabaasa

Other members: Photographers: Alice Yalla Andrew Kirui Peter Kasango Jackson Njamba Benard Mwendwa Raphael Kanothi EAC Secretariat, Winnie Cheserem PSCU Collins Omondi

DESIGN, LAYOUT AND PRINTING EDITORIAL Colourprint Ltd. President An Overview of the All correspondence should be addressed to Principal Uhuru Kenyatta Ministry of East Secretary, State Department of East African Affairs, P.O. Box takes over EAC African Affairs 8846-00200, City Square Nairobi. Jumuiya News admits 16 no liability for unsolicited articles or pictures, which must Chairmanship 8 Commerce and be accompanied with a self-addressed, stamped envelop. Tourism Whilst every effort has been made to ensure the accuracy of information contained in this newsletter, the writers, The East African editor and publisher accept no responsibility for any loss, Community East African fi nancial or otherwise, sustained by any person using this publication. No part of this publication may be reproduced, (EAC) focus on Community stored in retrieval systems or transmitted in any form by 19 any means, without prior written permission from the Infrastructural Centres of 24 Ministry of East African Affairs, Commerce and Tourism. Development Excellence - RVTTI

The East African Regional Speaker Single Tourist Praises Ministry as Visa set to boost Online 27 EALA Team Tours tourism in the 38 Magazine region For the online version of this magazine, with additional material and an opportunity to air your and many more... views, please visit:

Cover: EAC Heads of State; H.E Pierre Nkurunziza (Republic of Burundi) H.E Jakaya Kikwete (United Republic of Tanzania)H.E Uhuru Kenyatta (Republic of Kenya) H.E (Republic of ) and H.E Paul www.meac.go.ke Kagame (Republic of Rwanda) during the 15th Summit of the EAC Heads of State on 30th November,2013 in Uganda.

Issue 29 • January - March - 2014 PAGE 2 Members of the EALA Kenyan Chapter pose for a group photo with East African Affairs,Commerce and Tourism Cabinet Secretary,Phyllis Kandie(front row seated 4th left),Principal Secretary,Mwanamaka Mabruki (front row 3rd seated) when the Ministry held a two-day workshop for the legislators and senior Ministry officials in . Cabinet Secretary Wants Stakeholders To Support EAC Integration By Michael Okidi ast African Affairs, Commerce and trade, movement and social interactions. cost of doing cross border business by half Tourism Cabinet Secretary, Phyllis The Cabinet Secretary expressed through reduction of time spent at border EKandie has asked stakeholders in the confidence that the recent signing of the clearances. (EAC) integration EAC Monetary Union Protocol would open process to double their efforts towards the a fresh page for the region’s citizens, noting The Cabinet Secretary said her Ministry realization of a fully integrated and socially that with the expected use of a single would undertake an extensive sensitization cohesive East Africa. currency by the year 2024, the regional and awareness campaign to inform economy would register prosperity and Kenyans about the benefits of EAC Noting that the EAC integration process adequate value for the citizenry. integration and how they can exploit the had reached a critical stage, the Cabinet trade opportunities available. Secretary said it was imperative that She told the EALA members to take a implementers of the various integration frontline position in working for the Principal Secretary in charge of East pillars move with speed to attain their attainment of the envisaged East African African Affairs, Mwanamaka Mabruki, assigned goals within the set time limits, Political Federation, being the legislative who accompanied Mrs Kandie, reiterated so that the integration process is not arm of the Community, by enacting her Department’s commitment to the obstructed. the necessary, progressive and relevant effective coordination of the EAC affairs legislations towards this goal. for the benefit of Kenyans. Speaking in Mombasa during a joint workshop between Senior Officers from The Cabinet Secretary further asked She said that with Kenya’s assumption the State Department of East African officers working in the Department to of EAC chair, the Department would go Affairs and Members of the East African ensure they worked with the relevant an extra mile to ensure the integration Legislative Assembly (EALA) Kenya stakeholders, institutions and individuals process is effectively co-ordinated and Chapter, Mrs Kandie emphasized the spirit for the singular most important goal of Kenyans are well sensitized on their roles of team-work in actualizing the goals of realizing the dreams of an economically and the expected benefits accruable from the integration agenda. integrated, socially cohesive and politically the EAC integration process. united East Africa. Mrs Kandie reminded the officers and the On their part, the EALA Members pledged legislators that as the current chair of the Mrs Kandie said that with an increase in to work more closely with the Department EAC, Kenya must play a leading role in trade volumes enabled by the regional to successfully drive the integration agenda all aspects of legislation, setting valuable Common Market, East Africa promised to for the prosperity of the citizenry. examples which should be emulated by be a regional economic hub from which the other Partner States. Kenyans and citizens of the other Partner The EALA Kenya Chapter Chairman Kiangoi States stood to benefit immensely. Ombasa noted that a closer collaboration She noted that President Uhuru Kenyatta, with the officers implementing various the current chair of the regional bloc, She further cited the construction of One integration policies on behalf of the had made clear his desire to see a faster Stop Border Posts (OSBP) in major border Government would enable the assembly to progress of the integration agenda for the crossing points as a major step towards focus on, and enact the relevant legislations benefit of Kenyans and other East Africans easing regional trade, saying that once that would hasten the realization of a fully who will eventually enjoy unrestricted complete, the facilities will reduce the integrated regional bloc.

Issue 29 • January - March - 2014 PAGE 3 EDITORIAL

The Monetary Union Protocol is here, but the real work is just starting

n November 30th, 2013, shall need to work towards have attained a single currency at the exclusive Speke attaining macroeconomic without any hitches, the next OResort and Conference convergence criteria to ensure and last pillar – the political Center in Kampala, Uganda, the single currency operations federation – should even take a the fi ve East African Community do not unjustifi ably hurt some shorter time to realize. Heads of State signed the East economies while unfairly African Monetary Union Protocol, rewarding others. The readiness by the individual to herald a new beginning for the Partner States to adapt to the region’s fi nancial management Suffi ce it to say that after the demands, styles and processes sector. signing of the protocol, the of achieving a single currency by fi ve EAC Partner States have the year 2024 will be dictated Years of anxiety within the now made individual, binding by their ability to establish the region’s fi nancial circles have pledges to direct their fi nancial relevant supporting mechanisms now come to an end, paving management efforts towards the within the set timelines. the way for the process of realization of the single currency. implementing what promises to Ensuring the setting up of change the face of East Africa Though the time frame given the necessary procedures forever. Handled well, the EAMU for the full implementation – ten and institutions to meet the may just be the vehicle on which years – may look comfortably deadlines set up in the protocol East Africa rides to economic achievable, experts have already will demand joint efforts of all prosperity. warned that any complacency stakeholders, among them the may lead to some, or even all, private sector, the governments When fully implemented, the Partner States failing to attain and the ordinary citizens of these protocol is set to yield a single the required macro economic States. currency around which the convergence criteria to facilitate economy of the East African the establishment of a single It is not enough, and it may be region will rotate. Such a scenario currency. of little value, to focus attention carries with it several benefi ts, and hopes at the political including elimination of foreign What is now required is leadership of the individual exchange risks, prevention commitment by the Partner Partner States to singly give the of competitive currency States so that the various time policy directions, spearhead devaluations and speculations, frames set for the actualization of the implementation and consolidation of the common the different components of the monitor progress of institutions, market and increase of business protocol are strictly adhered to, if procedures and regulations certainty, and many others. this noble economic objective of leading to the attainment of a a single East African Currency is single East African currency. However, the hard part towards to be achieved by the year 2024. the attainment of a single This is a litmus test which may All citizens must play their regional currency has just began. be used to gauge the readiness individual, group, sectoral, First, the Partner States must be of the region to come together national and regional roles to ready and prepared to forego under a political federation. ensure the processes laid down their monetary sovereignty as for the implementation of the they converge their diverse A region operating under a single EAMU protocol are adhered to, monetary policies into a regional currency can fi nd it extremely and sustained. Only then will the one. easy to operate under a single dream of a single EAC currency political and governance system. be realized within the next Secondly, the Partner States If, by 2024, East Africa shall decade.

Issue 29 • January - March - 2014 PAGE 4 Main Story

EAC Heads of State; H.E Pierre Nkurunziza (Republic of Burundi) H.E Jakaya Kikwete (United Republic of Tanzania) H.E Uhuru Kenyatta (Republic of Kenya) H.E Yoweri Museveni (Republic of Uganda) and H.E (Republic of Rwanda)display copies of East African Monetary Union protocol which they had signed during the 15th EAC Summit in Kampala Uganda on November 30th 2013. A new beginning as the Monetary Union Protocol is signed By Michael Okidi

he much-awaited East African These will involve working on various The East African Surveillance, Compliance Community Monetary Union (EAMU) economic and fi nancial management and Economic Commission, and The East TProtocol has now been signed, reforms in line with the wordings, African Financial Services Commission, and sparking off heightened anxiety and directives and agreements outlined should be in place by the end of 2016. renewed hope among regional fi nancial in the protocol, to yield a regional sector players on whose shoulders now lies macroeconomic convergence criteria These key institutions will be the fi rst to the onus of fi nally bringing to fruition the which has benchmarks related to fi scal be established during the transition period envisaged East African Single Currency. defi cit, national debt to Gross Domestic of the EAMU implementation roadmap to Product (GDP) ratio, infl ation and reserve undertake initial preparatory work, with The fi ve EAC Heads of State put pen to covers. the East African Monetary Institute being paper during their 15th Summit meeting transformed into an East African Central at the Speke Conference and Resort All the required macroeconomic Bank in the immediate run-up to a single Center in Kampala, Uganda, on November convergence reforms must be undertaken currency. 30th, 2013, to end a decade-long wait for by the Partner States to ensure a legally binding commitment towards the the attainment of macroeconomic The envisaged East African Central Bank attainment of a single regional currency. convergence by 2021, so that, as stated will be modeled on a system where in the protocol, they are monitored for a there shall exist national central banks The signing of the EAMU protocol, which consecutive period of three years during implementing the monetary and fi scal forms the third pillar on which the EAC which time they will be required to have rate policy, alongside the Regional Bank integration is hinged, followed years of achieved and maintained such criteria. responsible for the formulation of a single negotiations by Partner States and a fi nal monetary and exchange rate. report by the Council of Ministers who met As a fi rst condition, the fi ve EAC Partner a day before the summit, recommending States will be required to conclude the The management system of the East the fi nal, agreed report to the Heads of ratifi cation process for the EAMU protocol African Central Bank will comprise State. by July, this year, exactly six months from a governing council made up of the the date of signing the protocol. President of the East African Central Bank However, the signing of the protocol was and the governors of the national central simply a binding start to an envisaged This will pave way for the establishment banks. ten-year gradual implementation of the of a number of key institutions through various mechanisms, steps and procedures which the implementation of the road The Council of Ministers shall be required on which the monetary union will be map to a single East African currency to introduce bills for the establishment underpinned, to yield a single currency by will be implemented. Such institutions of these institutions at the East African year 2024. will include; The East African Monetary Legislative Assembly (EALA) by Institute, The East African Statistics Bureau, December, 2014. The Council will

Issue 29 • January - March - 2014 PAGE 5 further be required to appraise the summit Partner States. Meanwhile, the Summit technology (ICT) requirements that at its yearly ordinary meetings on the received and approved the final framework encompass compatible and interfaced progress of the implementation of the report for the operationalization of a single customs systems where all customs roadmap to the single currency. customs territory, and directed that the stations must have functional ICT systems. Single Customs Territory commences on To ensure strict adherence to the set 1st January 2014, after all operational Others will be the establishment of deadlines, the East African Surveillance, requirements are finalized by June 30th, regional cargo tracking systems and the Compliance and Enforcement Commission 2014. implementation of Regional Customs will monitor individual Partner States Transit Guarantee Scheme to enable the progress on the implementation phases, Such pre-conditional enablers for the operationalization of a regional bond. and periodically produce reports to update single customs territory include putting the Summit on the progress made by the in place information and communication

What you need to know about the East African Community Monetary Union: Envisaged Benefits, Costs and Progress Made in the Negotiation of East African Community Monetary Union Protocol By Peter Njoroge, Ag. Director, Economic Affairs

Introduction Envisaged Benefits and Costs of the Promotion of Trade and Investment On 30th November, 2013, the 15th Monetary Union Multiple currencies in the EAC region Summit of East African Community Heads Benefits of a Monetary Union discourage trade and investment among of State approved and signed the East The following are some of the benefits Partner States due to uncertainty and African Monetary Union (EAMU) Protocol that are expected from EAMU; Foreign Exchange transactions costs. A in Kampala, Uganda. The signing put in Single Currency will therefore promote motion a ten year journey towards the Reduction in Transaction Costs trade and investment by reducing realisation of a Single Currency for the The most important benefit expected uncertainty and transactions costs. The region. from adoption of a Single Currency is the Integrated Financial sector and Payment reduction of the transaction costs. Most and Settlement System will facilitate Intra- The establishment of EAMU is anchored transaction costs are associated with bid- regional trade and financial flows. in the Article 5(3) of Treaty for the ask spreads and commissions on Foreign Establishment of the East African Exchange transactions. Switching to a Removal of Foreign Exchange Risk Community which states that “… the Single Currency will eliminate the need to Multiple currencies within the EAC region Partner States undertake to establish exchange currencies between East African lead to Foreign Exchange risks which among themselves and in accordance with Monetary Union (EAMU) Partners thus are considered a major obstacle to trade the provisions of this Treaty, a Customs leading to reduction in transaction costs and Cross-Border lending. Adoption of a Union, a Common Market, subsequently a associated with the exchange of currency Single Currency shall eliminate the risks Monetary Union and ultimately a Political by firms involved in import and export associated with foreign exchange rates Federation”. trade. Along with eliminating of the need among Partner States which will in turn to exchange currencies, the problems with speed up the development and integration Further, Chapter Fourteen (Articles 82, Exchange rate volatility would also be of the financial markets. 83, 84, 85, 86, 87 and 88) of the Treaty eliminated between Partner States. provides for Cooperation in monetary and Prevention of Competitive financial matters. There will therefore be an end to the Devaluations and Speculation destabilising currency shifts within the Switching to a Single Currency prevents What is a Monetary Union? Single Currency area. The only remaining competitive devaluations and speculation. A Monetary Union refers to a group of fluctuations will be between the EAC Single A competitive devaluation occurs when two or more States sharing a common Currency and other currencies such as the one country devalues its currency in order currency. It is a complete abandonment Dollar, Yen, Euro etc. The elimination of to export more goods. In response, the of separate national currencies and full this risk will help international trade, thus trading partners of that country would do centralization of monetary authority in a giving advantages to all Partner States that the same thing, resulting in a downward single institution. A Monetary Union or will be Partners of the Currency Union. spiral on currency value, as well as an Currency Union is characterised by; increase in inflation. Speculation often Members of the European Monetary occurs whenever people anticipate that • A Single Currency or several currencies Union were expected to save as much as a currency would drop in value, and that are fully convertible at an US $30 billion a year in transaction costs. subsequently sell all their holdings in that irrevocably fixed Exchange rate; Whereas no estimate is currently available type of currency. Others would follow and • A Union-wide monetary policy that is on savings likely to accrue to EAC Partner the trend would be self perpetuating. A determined by a single Central Bank or States because of adopting a Single Single Currency for EAC would eliminate a system of central banks; and Currency, the savings expected will be speculation between the Partner • A sole External Exchange rate policy. enormous. States.

Issue 29 • January - March - 2014 PAGE 6 Consolidation of the Single Market of a Single Currency or change the interest problems at home. Interest rates and and increase in Business certainty rate. Interest rates and exchange rates exchange rates can no longer be used to A Single Currency will enhance will no longer be used to adjust economic adjust economic imbalances at individual consolidation of a single market. A single imbalances at individual Partner State Partner State level. Consequently, the loss market will increase efficiency in production level. Decisions of this nature shall be the of autonomy in monetary and exchange because of increased specialisation and responsibility of the EACB. rate policy and constrained national fiscal economies of scale, thus increasing the policy will make economic policy within Community’s Gross Domestic Product Diversity of the Economies of the Members the Monetary Union rigid. (GDP). Credibility and visibility of the Single of EACMU: The economies of EAC are Currency is expected to enhance business diverse in that they have different levels Pre-Requisites for the Monetary Union confidence and certainty, which will of efficiency, productivity, inflation and to Article 5 of the Protocol sets out the subsequently lead to increased investment some extent different structures, among following pre-requisites that need to and economic growth in the Community. other economic fundamentals. If all be fulfilled before a Single Currency is economies were the same and had similar introduced. They include: Lowering Of International Reserves objectives, they would possibly adopt the • Full implementation of the Customs EAC Partner States currently have to same policies and respond in the same Union and Common Market; maintain international reserves to cater way to changing circumstances, thus • Harmonization and coordination of for external obligations both within and eliminating many of the advantages of fiscal policies; outside the EAC region. This necessitates fixed exchange rates. • Harmonization and coordination of maintainace of high levels of Foreign monetary and exchange rate policies; Exchange Reserves. The adoption of a To bridge the diversity in the economies, • Adoption of common principles and Single Currency will allow Partner States’ the Macro-economic Convergence Criteria rules for payments and settlements; firms to pay for their imports from within framework, which is part of EAC Monetary • Harmonization of payments and the region using the Single Currency. As Union Protocol, has been developed and settlement systems; a result, Partner States national Central all Partner States are expected to work • Harmonization of policies and laws Banks will no longer need to keep aside towards the achievement of targets set relating to the production, analysis and some of their Foreign Exchange Reserves by 2021. Partner States that achieve the dissemination of statistical information; for the purpose of settling Intra-trade performance criteria will be expected to • Integration of financial systems and transactions and thus lower the amount maintain and sustain it until 2024 for them adoption of common principles and of international reserves required. This to be allowed to join the Single Currency rules for the regulation and supervision may result in the lowering of interest rates, area. Performance criteria is mandatory of the financial system; and thereby encouraging more investment and for a Partner State to fulfil, while Indicative • Attainment of Macro-economic reducing the cost of national debt service. Criteria gives an early warning or Convergence Criteria. Ultimately, this will result in an increase in indication on whether Partner States are national income. on course to meeting the performance The attainment of these prerequisites will criteria. The targets for each category are be very critical since they will support the Price Convergence and Price Stability shown below; attainment an Optimal Currency Area The presence of multiple currencies in (OCA) in EAC which is an important pre- an economic block creates many units Performance Convergence Criteria condition for introduction of a Single of accounts thus making it difficult to • A ceiling on headline Inflation of 8%; Currency. compare prices. In this regard, consumers • A ceiling on Fiscal Deficit, including and producers face challenges in shopping grants of 3% of Gross Domestic The attainment of the OCA requires: (i) around for best prices within the region. Product; Labor mobility across the region (ii) Capital Adoption of a Single Currency within • A ceiling on gross public debt of 50% mobility (iii) Price and wage flexibility, (iv) a the EAC economic block will provide for of Gross Domestic Product in Net risk sharing system such as an automatic one unit of account which will facilitate Present Value terms; and fiscal transfer mechanism to redistribute price comparisons. Producers as well as • A Reserve cover of 4.5 months of money to areas adversely affected by consumers will be able to “shop around” imports. shocks and (v) participating Partner States for the best prices and this will promote having similar business cycles. competition and innovation. Indicative Convergence Criteria as early warning indicators Institutions to be created to support Costs of a Monetary Union • Core inflation ceiling of 5% EAMU Loss of Sovereignity of Monetary Policy • Fiscal deficit (excluding grants) ceiling Articles 20 and 21 provide for creation of and Exchange Rate Policy: 6% of GDP five key institutions to support EAMU. Four • to GDP ratio of 25% (4) of these institutions will be permanent According to Article 231 of the Constitution while one will be a transitional institution. of Kenya, the Central Bank of Kenya is Constraints on Economic Policy: Fiscal responsible for formulating monetary policy is likely to be constrained since The four permanent institutions to be policy, promoting price stability, issuing Partner States set limits on spending and created include: currency among other functions. Upon debt as per convergence criteria. In EAC the • East African Surveillance Compliance adoption of a Single Currency in 2024, macro economic convergence criteria has and Enforcement Commission i.e. Kenya will cede both the monetary and set the limits as shown above. Due to loss institution responsible for Surveillance, exchange rate policies and the issuing of of sovereignty in monetary and exchange Compliance and Enforcement currency to the East African Central Bank rate policies, Partner States relinquish their • East African Statistics Bureau i.e. (EACB). The national Central Banks will no right to change monetary and economic institution responsible for longer unilaterally alter the Exchange Rate policies in order to respond to economic Statistics Cont’d Page 9 Issue 29 • January - March - 2014 PAGE 7 President Uhuru Kenyatta addresses the EAC Heads of State Summit on 30th November, 2013 after taking over as the EAC Chair in Kampala, Uganda. President Uhuru Kenyatta takes over East African Community Chairmanship ...as the EAC takes a bold step towards implementing the EAC Monetary Union Protocol By Michael Okidi resident Uhuru Kenyatta of the Republic that Kenya is chairing the regional bloc, These and many others, presents the of Kenya will steer the East African having handled the same responsibility in Community’s newest Head of State with an PCommunity (EAC) agenda for a period 2012 when the country was still under the opportunity to make a significant mark in of one year after taking over Chairmanship Presidency of (now retired) . the EAC integration process, first mooted by of the Summit from President Yoweri his father and founding , Museveni of the Republic of Uganda at the Under the EAC Treaty, chairmanship is the late Mzee and his then 15th EAC Summit in Kampala, Uganda on rotational among the five Partner States, Ugandan and Tanzanian counterparts; Dr 30th November 2013. The United Republic however, Kenya took over the chairmanship Milton Obote and Mwalimu Julius Nyerere. of Tanzania will be the Rapportuer after after Rwanda declined, due to national taking over from the Republic of Burundi. commitments. It is worth noting that as he took over as the new EAC Chair, President Uhuru stressed In his acceptance speech, President Uhuru President Kenyatta takes over as the EAC the need to enhance implementation of enumerated the goals of his stewardship Chair at a time when one of its most crucial various agreements aimed at steering the of the Summit, among them elimination pillars – the Monetary Union – has just been integration process to success – pointing of all barriers to progressive integration. signed, heralding a new beginning for the to his instant enthusiasm to see a steadily The Kenyan Head of State emphasized regional financial management sector. growing, economically viable and socio- that unnecessary barriers to trade, poor politically stable East Africa. infrastructure and delayed implementation President Uhuru’s Chairmanship comes of key integration decisions must be at the inception of the ‘Monetary Union’ Other landmark EAC issues to be concluded consigned to the dustbin of diminishing milestone as the Community gears towards or tackled under President Uhuru’s history as the integration wheel maintains a a regional Single Currency. Equally critical Chairmanship include implementing the steady momentum. are the ongoing negotiations on the Single Customs Territory, steering forward possibility of admitting as the the operation of the internalized new He applauded President Museveni, the sixth Partner State of the EAC. generation East African passport, the outgoing Chair for a sterling performance introduction of a Single Tourist Visa for during the 2012/2013 period, noting that President Kenyatta has already played a the region, and debate on the Council’s under his stewardship, the EAC had recorded critical role in resolving the recent South agreement on the adoption of a legally tremendous progress, a steady growth pace Sudan crisis, making his patronage in binding mechanism for the elimination of and handed the regional citizens renewed deliberating that country’s application to non-tariff barriers. hopes and confidence. join the EAC valuable and insightful. This is the second time in under five years These mechanisms include the

Issue 29 • January - March - 2014 PAGE 8 development of a web-based reporting system (the East African Monetary Cont’d from Page 7 System (EAMS) that ensures every Partner State accesses all decisions and • The East African Central Bank Road Map on EAC Monetary Union directives that the Council has made since • East African Financial Services The road map details activities to be the year 2000, with the corresponding Commission i.e. institution responsible implemented in order to realize the Status of Implementation. for Financial Services Monetary Union and provides for an implementation period of 10 years for They also include the proposed establishment The East African Monetary Institute key milestones before a Single Currency of National Implementation Committees, (EAMI), which will be the only transitional is introduced in 2024. The key milestones Focal Point Officers and National Monitoring institution, will be responsible for with their corresponding timelines are Committees to expedite the implementation preparatory work for the Monetary Union. shown in table 1 below: of the agreed commitments by the Partner States. Aware of the massive tasks that lie in Table 1: Key Milestones of the East African Monetary Union wait, the new EAC Chair has already sounded out that Partner States need to recommit S/No. Activity/Milestone Time line their energies to the implementation of key 1. Implementation of the Customs Union and Monetary Union 2015 integration decisions and to work collectively 2. Establish East African Monetary Institute 2015 towards a speedy realization of one East 3. Establishment of the East African Statistics Bureau, East African Financial Services By 2018 Africa. Commission and East African Surveillance Compliance and Enforcement Commission This high-level commitment to the ideals of 4. Coordination and harmonisation of fiscal policies, monetary and exchange rate By 2018 integration now throws back the challenge policies, statistics to the Government’s line ministries and 5. Harmonisation and integration of payment and settlement system and financial system By 2018 institutions charged with the coordination 6. Strict adherence to macroeconomic convergence From 2021 and implementation of the EAC affairs in 7. Establish EAC Stabilisation Facility By 2022 Kenya. The country now takes a front-row 8. Design and implement a common exchange rate mechanism By 2022 seat in all deliberations about the EAC, 9. Determination of conversion rates and design of single currency By 2024 chairing meetings and providing policy 10. Conversion and redenomination of existing legal instruments By 2024 directions for the integration process for the 11. Establishment of EACB By 2024 next one year. 12. Introduction of a Single Currency By 2024

Ministry launches Strategic Plan that aims to accelerate Kenya’s Economic Growth By Michael Okidi and Lily Mwanjila

he Ministry of East African Affairs, Commerce and Tourism launched Tits Strategic Plan for the 2013-2017 period, identifying its strategic goals, objectives, activities, expected outputs and outcomes, in line with the Kenya Constitution 2010.

The Strategic Plan, anchored on the Second Medium Term Plan of the , is a manifestation of the Ministry’s pledge to deliver quality and efficient services to Kenyans, and is expected to accelerate economic growth and development by promoting domestic and export trade, fair trade practices and consumer protection, regional integration initiatives and tourism promotion and development.

The Strategic Plan, launched at a colourful ceremony on December 6th, 2013 at Nairobi’s Intercontinental Hotel. It identifies 13 strategic goals that are expected to form East African Affairs, Commerce and Tourism Cabinet Secretary, Phyllis Kandie (centre), accompanied a firm foundation for an efficient, prompt by Principal Secretaries; Mwanamaka Mabruki, East African Affairs(right) and Dr. Ibrahim M. and sustainable delivery of services to Mohamed, Trade and Tourism (left), display copies of the Ministry’s Strategic Plan (2013-2018) Kenyans. during its launch at a Nairobi Hotel on December 6, 2013.

Issue 29 • January - March - 2014 PAGE 9 These include the validation and Resource Management Framework, among and exhibition facilities in order to attract operationalization of a regional others. business tourists as a perfect blend with the integration policy and strategy, promotion existing beach and safari products. of trade through improvement of business Success and sustainability of the environment, promotion of fair trade implementation process will be ensured by To preserve and develop the rich tourist practices and consumer protection, putting in place a continuous review process destinations like Kwale and Lamu towns advancement of export trade and regional that will accelerate smooth and effective into modern resort destinations, the Cabinet integration, product development and implementation of the Plan. Secretary announced that the Ministry would innovation and marketing of Kenyan develop a new management program for tourism products. Speaking when she officiated at the launch the beach ecosystem at the Kenyan coast. of the Strategic Plan, the Ministry’s Cabinet Other strategic objectives on which the Secretary, Mrs Phyllis Kandie described The program, she said, would encompass Strategic Plan are underpinned include the Plan as a summation of the Ministry’s the development of new products that tourism research and information ambitions and a declaration of belief in include water sports like water skiing, management; enhancement of financing team work for the attainment of set goals. surfing, and enhancement of security and and investment environment; improvement safety measures like the establishment of of legal and policy frameworks; improvement She said the development of the Strategic Coast Guard services. of linkages and inter-sectoral collaborations; Plan was a clear statement of the potential effective information management for visible in Kenya under the sectors that fall On regional integration, Mrs Kandie said decision making; and integrated mechanism within the Ministry’s domain. that her Ministry would expedite the East for public communication; women African Community integration process to and youth empowerment and capacity The Cabinet Secretary expressed confidence facilitate free movement of goods, labour improvement for service delivery. that the Plan will be a perfect guide for and services, besides accelerating the the Ministry as it pursues speedy regional expansion of the regional market. To ensure effective implementation, the integration, increased tourist arrivals and Ministry’s Strategic plan outlines various support for Kenyan entrepreneurs in line This, she said, will include enhancement of steps that include a review of the Ministry’s with the country’s Vision 2030 goals. public awareness about the EAC integration organizational structure and carrying out process and the opportunities available, so an appraisal of its human and financial Mrs Kandie said that the Plan will guide the that Kenyans can not only be aware of, and resources to, among others, exploit its Ministry’s focus on the marketing of value accept the integration agenda, but also own strengths and seize available opportunities, added products to substantially increase and play a part in the entire process. implement Government policies and ensure Kenya’s export products by undertaking a strict focus on the Ministry’s Mandate. multiple projects like promotion of product The launch of the Strategic Plan was diversification initiatives and construction of attended by the Ministry’s two Principal To ensure strict adherence to accepted official a Pilot Wholesale Hub Market to serve as a Secretaries: Ms Mwanamaka Mabruki (East procedures, the implementation process will model for the private sector. African Affairs) and Dr Mohammed Ibrahim be carried out in strict compliance with the (Commerce and Tourism), among other wider Public Service reform frameworks, She indicated her Ministry’s intent on senior Ministry officials. including Public Finance Management promoting Kenyan tourist industry Act, Performance Contracting and Human through the development of conference

East African Affairs, Commerce and Tourism Cabinet Secretary, Phyllis Kandie (right), accompanied by Principal Secretaries; Mwanamaka Mabruki, East African Affairs(partly hidden) and Dr. Ibrahim M. Mohamed (left), Trade and Tourism unveils the Ministry’ 2013-2018 Strategic Plan during its launch at a Nairobi Hotel.

Issue 29 • January - March - 2014 PAGE 10 Frequently Asked Questions On the East African Monetary Union

By Public Communications

What is a Monetary Union? Which institutions are to be established • Fiscal discipline among Partner States as necessary for the implementation of A Monetary Union refers to a group of two the EAMU? • Can result in more stable inflation or more States sharing a common currency. It is a complete abandonment of separate There are five (5) institutions proposed to be • Increased integration between Partner national currencies and full centralization of established under East African Community States resulting in more economic monetary authority in a single institution. Monetary Union (EAMU). Four (4) of development these institutions will be permanent while At what stage are we in the EAC one will be a transitional institution. The • The currency provides identity to the integration Journey? four permanent institutions to be created East Africans include: The five East African Community Partner What are the costs of a Monetary States (Kenya, Uganda, Tanzania, Rwanda • East African Surveillance Compliance Union? and Burundi) have already signed the and Enforcement Commission i.e. • Loss of sovereignity in monetary policy Protocols establishing the Customs Union, institution Responsible for Surveillance, and exchange rate policy the East African Common Market and on Compliance and Enforcement 30th November, 2013, a Monetary Union • Constrained fiscal policy since members Protocol was signed during the EAC Heads • East African Statistics Bureau set limits on the yearly budget deficits of State Summit in Kampala, Uganda, and it to Gross Domestic Product (GDP) as per is expected to be ratified by July 2014. • The East African Central Bank convergence criteria

When will East African region attain a • East African Financial Services • The obvious diversity of the economies Common Currency? Commission involved i.e. different fundamental economic structures, levels of efficiency, The region will attain a full Monetary Union The East African Monetary Institute (EAMI) productivity and inflation. in 2024. The Protocol will be ratified by July which will be the only transitional institution 2014, however the common currency will that will be created and will be responsible • No role for the exchange rate as an be attained by 2024. for preparatory work for the Monetary automatic stabilizer Union. The EAMI will be dissolved once it How important is a Monetary Union? completes the preparatory work on EAMU. • Economic policy becomes very rigid in a Monetary Union. The Monetary Union is usually a very critical How will a Kenyan benefit from the stage of integration within any Regional East African Monetary Union? • Monetary policy is set by a supranational Economic Community. In recognition of institution In the event of a detrimental this, the Treaty for the Establishment of • Consolidation of a single market asymmetric shock that puts the the East African Community in Article 5(2) economy in recession, there are very states that: “the Partner States undertake • Price convergence and price stability limited policy response options in a to establish among themselves and in Monetary Union accordance with the provisions of this • Increased capital inflow Treaty, a Customs Union, a Common • Limited national monetary policy Market, subsequently a Monetary Union • Increased certainty to business flexibility in a Monetary Union and ultimately a Political Federation”. Further, Chapter Fourteen (Articles 82, 83, • More certainty for foreign direct • No consensus on the costs of losing 84, 85, 86, 87 and 88) of the Treaty provide investors this flexibility. Recent international for cooperation in financial matters. experience.

Issue 29 • January - March - 2014 PAGE 11 One Stop Border Post Construction nearing completion at Isebania on the Kenya-Tanzania border. The facility is expected to commence operations in May 2014. Establishment of One Stop Border Posts set to cut Cross Border Trade Costs By Michael Okidi

enyans and other East Africans realization of an economically prosperous for speedy clearance of border crossing. doing business beyond their East Africa. Knational borders are set to enjoy Already, the OSBP facilities are undergoing massive reduction in transport costs when According to the OSBP project Director construction at a major Kenyan border exit the unprecedented One Stop Border Posts at Trade Mark East Africa, Theo Limo, and entry points of Isebania, Taveta, Lunga (OSBP) are completed and operationalized. the concept, is to enable goods entering Lunga, Namanga, Busia and Malaba. The a Partner State to cross straight to the first three – Isebania, Taveta and Lunga Under the OSBP arrangement, cross border country of destination, ,and get all the Lunga are set to commence operations by goods clearance will be carried out once at necessary clearance documents at one go, mid this year, while the other three are still the point of entry, contrary to the existing cutting travel time by half. in their initial stages of operation, having trend of double clearance – at the exit and been delayed by logistics that have so far entry border points respectively. Mr Limo said that to ensure efficient been sorted out. operationalization of the OSBP, border The multi-million dollar facilities, currently Clearing Agents from neighbouring When Jumuiya News team visited several under construction at all the major border Partner States will be stationed on either of these facilities recently, enthusiastic crossing points between the East African side of the clearance posts to ensure the cross border traders were upbeat about Partner States, was mooted as a solution required documentations are given to the the possibility of registering massive to the immensely expensive double border traders for onward movement to their final savings through reduction of time spent at clearance procedures, in which traders destinations within the country of entry. border clearances. lose millions in time wastage, and which sometimes results in wastage of, especially, The OSBP projects will house all the At the Isebania border point where perishable goods. necessary clearance facilities, ranging from construction workers were doing final warehouses, verification shades, X-ray touches to the facilities, local chairman The donor funded projects, coordinated by stands, incinerators (for destruction of of the Cross Border Traders, Abdul Rumo, Trade Mark East Africa, aims to effectively rubbish or expired goods), cattle holding expressed hope that cross borders traders supplement the Common Market concept sheds, dog kernels, Customs, Immigration, would register improved profits from and to promote Cross Border Trade for the standards verification and all other offices using the facility.

Issue 29 • January - March - 2014 PAGE 12 Mr Rumo said traders doing business following challenges that ranged from compensation has seen the project stall, across the border into Tanzania were opening up of access clearance roads as the Kenya National Highways Authority often registering huge losses due to time to unfi nished sections. However, most and other Government organs work out wastage at border clearances on both sections of the facility had been completed. an amicable solution to the problems. sides, noting that with the anticipated single-stop clearance, movement of The same situation replicates in Taveta and However, in Busia and Malaba, construction goods would be faster and time wastage Lunga Lunga where substantial work has works are in their initial stages with the minimized. been done, except for a few fi nal touches Contractors already at the site. which, according to the Contractors, may At the World Bank funded facility, the not take long to fi nish up. However, the By and large, the overall objective of construction site engineer Mark Seko same cannot be said of the Busia, Namanga reducing cross border trade costs through told Jumuiya News that the contractor and Malaba facilities, whose works are still the single-stop clearance procedures will expected to hand over part of the facility far from completion, commencement of soon be the order of East African regional by end of March this year. He said that construction works having been delayed trade, courtesy of the OSBP concept that is the project was supposed to be handed by issues to do with compensation. soon becoming a reality at all the regional over in October, 2013, but the contractor border crossings. had asked for an extension of six months In Namanga, a two-year confl ict over land

One Stop Border Post Construction nearing completion at Isebania on the Kenya-Tanzania border. The facility is expected to commence operations in May 2014.

Issue 29 • January - March - 2014 PAGE 13 STRENGTHENING PARTNERSHIPS WITH STAKEHOLDERS

Indistrialization Cabinet Secretary signs the Visitors Book at one of the exhibition stands during the East African Jua Kali Exhibition at the Nairobi Railways Club in December, 2013. Looking on are (standing, from right); East African Affairs, Commerce and Tourism Cabinet Secretary, Phyllis Kandie, Keli Kiilu of the East African Business Council and East African Community Deputy Secretary General in Charge of Political Affairs, Charles Njoroge.

East African Legislative Assembly Speaker, Rt. Hon. Margaret Zziwa (third left), accompanied by other Assembly Members, during a tour of the Kenya Meat Commission plant in Athi River, Machakos County, when the regional legislators toured Kenya in March 2014.

A section of Members of the East African Legislative Assembly (EALA) during a visit at the Jomo Kenyatta International Airport as part of their Kenya Tour in early March, 2014. The team was led by Kenyan EALA MP Sarah Bonaya (front, facing camera), who stood in for EALA Speaker, Rt. Hon. Margaret Zziwa.

Members of the East African Legislative Assembly being shown around a construction site at the Jomo Kenyatta International Airport, Nairobi, when they toured Kenya recently.

East African Legislative Assembly (EALA) Speaker, Rt. Hon. Margaret Zziwa (front, middle) accompanied by other Legislators from the Regional Assembly, on a visit to the Ol Karia Geothermal Power Plant in Naivasha, Nakuru County, during the Regional Legislators’ Kenya Tour. On the Speaker’s right is the EALA Kenya Chapter Chair, Joseph Kiangoi. JUMUIYA NEWS PICTORIAL NEWS JUMUIYA Issue 29 • January - March - 2014 PAGE 14 STRENGTHENING PARTNERSHIPS WITH STAKEHOLDERS

East African Affairs Commerce and Tourism Cabinet Secretary, Phyllis Kandie, her Foreign Affairs counterpart , Amina Mohammed and EAC Deputy Secretary General, Charles Njoroge (right) arrive for the Heads of State Summit in Kampala in November 2013.

Participants of a Stakeholders forum on Tobacco Taxation during a group photo after a meeting at a Nairobi hotel.

East African Affairs Commerce and Tourism Cabinet Secretary, Phyllis Kandie (left) and her Industrialisation counterpart Adan Mohammed, being conducted around the stands at the EAC Jua Kali Exhibition in Nairobi.

Student leaders pose with an EAC fl ag after the launch of an EAC Club at Kenyatta University.

East African Affairs Principal Secretary, Mwanamaka Mabruki (seated left) when she paid a courtesy call on Busia County Governor, . The PS was in Busia to inspect work on the One Stop Border Post. JUMUIYA NEWS PICTORIAL NEWS JUMUIYA Issue 29 • January - March - 2014 PAGE 15 An Overview of the Ministry of East African Affairs Commerce and Tourism Jumuiya News unveils for you the Ministry of East African Affairs, Commerce and Tourism By Public Communications Unit following core values: In 2008, the Government redefined the • Integrity and Transparency: to be then Ministry’s mandate and gave it the accountable and devoid of corrupt responsibility of coordinating, facilitating practices in service delivery. and overseeing the affairs relating to the • Team work and Productive East African Community (EAC). Partnerships: to encourage team spirit, collaboration and consultation The EAC is a regional Inter-Governmental as a way of maximizing the synergy Organization comprising Burundi, Kenya, of working together. This includes Rwanda, Tanzania and Uganda which fostering collaboration with Focal came into being on 30th November Points, Stakeholders and Partners in 2000 when Kenya, Tanzania and Uganda order to effectively play a central role ratified the Treaty that established the of coordinating Kenya’s participation EAC. In line with the in Regional Affairs, Commerce and 2010, the structure of the Government Tourism was reorganized, and SDEAA created to • Innovativeness and Creativity: to be coordinate the EAC integration agenda in open and proactive in seeking better Kenya. and more efficient methods of service Mrs Phyllis J. Kandie, Cabinet Secretary delivery The State Department has the added ollowing the re-organisation of • Professionalism, Commitment and responsibility of facilitating sensitization Government in March 2013, the Customer focus: To maintain high and awareness campaigns on matters FMinistry of East African Affairs, professionalism through continuous of integration. The primary objective of Commerce and Tourism was created. The skills development, training and SDEAA is to coordinate the affairs of the Ministry is headed by Mrs. Phyllis Kandie, accountability to enhance customer EAC as they relate to Kenya, for the benefit Cabinet Secretary, Ministry of East African satisfaction. of its citizens. Affairs, Commerce and Tourism under • Equity, Fairness and Inclusion: To whom are the two State Departments i.e., mainstream gender, youth and Vision State Department of East African Affairs; special groups’ issues in the Ministry’s SDEAA aims to ‘Deepen and widen and the State Department of Commerce programmes. East African Integration for Sustainable and Tourism headed by Ms. Mwanamaka • Sustainability: To adopt global best Development and improved livelihoods of Mabruki, Principal Secretary East African standards for sustainable tourism, all Kenyans’ Affairs and Dr. Ibrahim Mohamed, commerce and regional integration Principal Secretary, Commerce and Tourism practices that uphold ecological Mission respectively. integrity, social justice, promote In order to achieve its Vision, the State economic development, and respect Department’s Mission is: The State Department of Commerce and local cultural values of the people of • To facilitate, coordinate and oversee Tourism comprises of two Directorates; Kenya. the development, monitoring and Directorate of Commerce and Directorate evaluation of the implementation of Tourism. The State Department of East of EAC policies, projects, and African Affairs (SDEAA) programmes for effective integration; and Ministry’s Vision, Mission and Core The State values • To promote partnerships, liaison and Department maintain linkages with all stakeholders of East African Vision on EAC matters for maximized Affairs (SDEAA) benefits. To be the preferred commercial hub, is a State tourism destination and champion of Department regional integration Structure of the Department in the Ministry The Technical arm is headed by Integration of East African Secretary and consists of four Directorates. Mission Statement Affairs, To facilitate access to markets through The Integration Secretary is in turn Commerce and responsible to the Principal Secretary. The development and promotion of commerce, Tourism, and tourism and regional integration Directorates, headed by Directors are; Mwanamaka Mabruki, was previously • The Directorate of Economic Affairs Principal Secretary a full Ministry Core Values • The Directorate of Political Affairs of East African • The Directorate of Productive and Values are an integral part of an Community. It was created as a Ministry in organisation’s culture, and they create a Services Sectors 2004 from a Department in the Ministry of • The Directorate of Social Affairs sense of identity, belonging and purpose. Foreign Affairs. Accordingly, the Ministry is guided by the

Issue 29 • January - March - 2014 PAGE 16 Integration Secretary “To be a global leader in promoting The Integration Secretary heads the Accountability: Commitment to trade, investment and private sector Technical arm of the SDEAA and is discharging our mandate in an accountable development.” responsible to the Principal Secretary. manner Mission Directorate of Economic Affairs Transparency: The endeavour to be “To facilitate trade and investment by The Director is responsible to the transparent in serving the Government championing an enabling environment for Integration Secretary for the coordination and all other nationalities domestic and export business to thrive.” of EAC activities, including, Trade and Customs; Fiscal and Monetary Affairs; Integrity: Openness in conducting Mandate Industry as well as Investment and Private our affairs and being devoid of corrupt The Directorate of Commerce derives Sector Development. practices while executing our mandate its mandate from the Executive Order No. 2/2013 dated 20th May 2013 on Directorate of Political Affairs Equity: Commitment to treat all members organization of the Government of the The Director is responsible to the Integration of staff fairly and to recognize their Republic of Kenya. The Directorate of Secretary for the coordination of EAC contribution in the discharge of SDEAA’s Commerce has been mandated to execute activities, including Political Federation mandate and to mainstream Government the following functions:- Matters; Interstate Security, East African policies on gender, the physically Legislative Assembly (EALA), Defence, Civil challenged, environmental conservation • Trade Development Policy Society, Labour and Immigration, Foreign and the HIV/AIDS issues in our activities. • Promotion of Retail and Wholesale Affairs, Legal and Judicial Affairs, and; East Markets African Court of Justice (EACJ). • Fair trade Practices and Consumer State Department Protection Directorate of Productive and Services of Commerce and Sector Tourism: The Ministry through this Directorate also The Director is responsible to the executes some of its mandate through the Integration Secretary for the coordination following institutions and parastatals:- of EAC activities such as Environment Directorate and Natural Resources Management; o f • Kenya Institute of Business Training Agriculture and Food Security; Transport, Commerce (KIBT) Infrastructure and Communication; • Business Premises Rent Tribunal (BPRT) Tourism and Wildlife Management; Lake Introduction • Export Promotion Council (EPC) Victoria Basin Commission and Energy. The Directorate • Kenya National Trading Corporation of Commerce (KNTC) Directorate of Social Affairs has been in The Director is responsible to the Dr Ibrahim Mohammed existence since Core Values Integration Secretary for the coordination Principal Secretary, independence. Values are an integral part of an of EAC activities, including Education, Commerce and Tourism Over the years, organization’s culture, and they create a Science and Technology; Health, Culture, the Directorate sense of identity, belonging and purpose. Sports and Gender; and Public Service has variously existed as Departments Accordingly, the Ministry is guided by the Management. of Commerce and Industry despite following core values: being merged, renamed and separated • Communication: to ensure smooth Other Sections with successive re-organisations of information flow for both internal and In addition to the directorates, the SDEAA Government. Currently, it is a one of the external stakeholders. has an Administration Department under two Directorates in the State Department • Integrity and Transparency: to be which there are several support units. of Commerce and Tourism, in the larger accountable and devoid of corrupt These include Supply Chain Management, Ministry of East African Affairs, Commerce practices in service delivery. Public Communications, Information and Tourism since March 2013. • People centered and Customer Communication and Technology (ICT), satisfaction: to treat customers with Human Resource Management, Central Vision courtesy and respect and delight in Planning Unit, Legal Affairs, Finance and Accounts, Human Resource Development (HRD), Records.

The SDEAA’s Core Values SDEAA upholds the following core values: Teamwork: Participatory approach in discharging the mandate of the State Department

Commitment: Being an effective agent of the East African regional integration, with people at the centre of all related efforts

Professionalism: Maintaining high-level professionalism through continuous skills development and training

Issue 29 • January - March - 2014 PAGE 17 their satisfaction. - Department of Internal Trade Directorates in the State Department • Commitment: to devote all our offi cial - Department of Weights & Measures of Commerce and Tourism in the larger time to our duties and undertake - Business Premises Rent Tribunal (BPRT) Ministry of East African Affairs, Commerce to deal with customers without - Kenya Institute of Business Training and Tourism. It provides policy. It provides unnecessary delays. (KIBT) policy direction to the Tourism Industry. • Team work: to encourage team spirit, - General Administration & Planning collaboration and consultation as Department Values a way to maximise the synergy of To fulfi ll its mandate pursue the vision and working together for improved service State Corporations accomplish its mission the Ministry will be delivery. 1. Export Processing Zone (EPZ) guided by the following values: • Innovativeness and creativity: to be 2. Export Promotion Council (EPC) • Quality service delivery to all tourism open and proactive in seeking better 3. Industrial and Commercial stakeholders and more effi cient methods of service Development Corporation (ICDC) • Integrity, transparency and delivery 4. Kenya National Trading Corporation accountability in all operations Limited (KNTCL) • Professionalism within the sector Policy Priorities 5. Kenya Wine Agencies Limited (KWAL) • Effi ciency and effectiveness in The policy priorities are based on the two utilization of resources core pillars of the Directorate, which are Directorate of Tourism • Social equity Trade and Investment. The Directorate of Tourism is charged with • Innovation and creativity making Kenya a destination of choice • Proactive leadership Trade Priorities and to facilitate sustainable tourism • Team spirit among staff and other key The trade priorities are as follows:- development as part of our national stakeholder. heritage and for posterity. • Expanding and diversifi cation of The Department is charged with the domestic and export trade We are proud to work in such a dynamic responsibility of developing, maintaining • Finalizing of the National Trade Policy and challenging sector, and are proud of and regulating the tourism industry. Its • Enhancing support for trade facilitation our position as one of the world’s premier specifi c functions are: - • Promotion of e-trade destinations and our excellent record in • Creation and sustainability of an • Expansion and strengthening of Public the conservation and protection of the enabling environment for the tourism Private Partnership great wealth of natural resource. It is our industry to fl ourish; • Establishing a trade and investment role to provide assistance and support to • Formulation, implementation, information sharing system our visitors, our fellow Kenyans and our coordination, monitoring and review • Providing entrepreneurial skills for tourism sector. of development policies, strategies and MSMEs programmes related to tourism • Supporting the improvement of Mandate • Implementations of appropriate business and investment climate The Directorate of Tourism is responsible tourism facilities registration to ensure • Formulating appropriate trade remedy for the formulation, co-ordination and high standards are maintained; regime administration of policy in respect to the • Development, promotion, marketing • Developing an appropriate negotiating tourism sector. This mandate is derived of domestic, intra-regional and structure from Presidential Circular No. 1/2007 international tourism; • Developing an integrated data base on dated January 2007 and various Acts of • Responsible for public relations that trade in goods and services Parliament. The Acts include:- The Tourist aim to project positive image of the • Aggressively promoting trade in Industry Licensing Act (TILA), Cap 381, country; services Laws of Kenya; The Hotels and Restaurants • Sourcing and providing short medium Act (HRA), Cap 494, Laws of Kenya; and long-term fi nancing and fi nancial Investment priorities services for tourism entrepreneurs; The investment priorities are as follows:- Vision • Promotion of both foreign and local • Improving the investment and business To make Kenya a preferred tourist investments in the tourism sector; climate destination and a leader in the sustainable • Maintaining a well regulated tourism • Promoting and facilitating investment development of tourism. industry; in the trade sector through ICDC and • Co-ordination of the implementation EPZA Mission of bilateral, regional and multilateral • Enhancing support for MSME research To develop, market and manage the arrangements/agreements in tourism; and development tourism sector in a sustainable way • Linkages with other relevant sectors • Facilitating access to venture capital that ensures increased earnings, wealth through inter-ministerial and creation and the maintenance of Kenya’s stakeholders arrangements in all Divisions within the Department of heritage for Prosperity. This is one of the matters related to the tourism sector. Trade:

Issue 29 • January - March - 2014 PAGE 18 A section of the Mombasa road near Athi River. The East African Community Partner States have prioritised infrastructural development as a key enabler for the success of regional integration. The East African Community (EAC) focus on Infrastructural Development By Alfred Kitolo, Ag. Integration Secretary he Voi- Arusha road is a key interlink Parks. These will be accessible within Under this project, Kenya has already between the Northern Corridor and one day from Moi International rehabilitated 25Km of the portion between Tthe Arusha – Nairobi – Moyale road Airport, Mombasa and Kilimanjaro Voi and Mwatate. It is estimated that the Corridor. This is a major EAC integration International Airport, Moshi; civil works for the 89 km stretch from infrastructural development project. It Mwatate to Taveta will cost Kshs.7.28 entails the upgrading of 89 Km of the road iii. Spur social economic growth in billion. African Development Bank has to bituminous standards on the Kenyan Mwatate, Bura, Mwakitau and Taveta already committed into financing 91% of side (Mwatate – Taveta) and rehabilitation towns; the cost with the balance being met by the of 118 Km from Holili to Arusha with a 22 Kenyan Government. Km bypass in Arusha town. iv. Provide alternative short route to the sea for the Kilimanjaro region. From Evaluation for the winning bidder has been This key interlink is expected to: Himo – the junction to Moshi to Dar done and contract signed. Construction i. Open up a very key agricultural es Salaam is 650 km whereas from the works are to start by the end of April, 2014 Kilimanjaro region thereby providing same joint to Mombasa is 285 Km; with the official launch expected to be access for produce to get to the big done in November, 2014 during the East market of Mombasa; v. Decongest the Arusha town with African Community (EAC) Heads of States construction of a bypass to connect Summit. ii. The area also hosts the Tsavo West Moshi-Arusha road with Arusha- National Park and Kilimanjaro National Namanga road.

Issue 29 • January - March - 2014 PAGE 19 The East African Community Peace and Security Protocol: The Next Steps By Alice Yalla and Tabitha Masinjila he conclusion of negotiations and At a deeper level, the Peace and Security management of genuine refugees, need signing of the East African Community Protocol provides a framework for to be developed. Strong institutional TPeace and Security Protocol heralds addressing pertinent security concerns structures within the EAC Secretariat, in a deeper level of cooperation among relating to crisis prevention, conflict particular, and adequate mechanisms for the Partner States. The Protocol not only resolution, piracy, terrorism and small implementation of regional strategies and indicates that the Partner States are keen arms and light weapons control which can standards should also be set up. to safeguard peace, stability and security erode achievements so far realised in the as foundations upon which economic EAC integration. What remains for the Further, an Integrated Peace and Security integration can be successfully realised; it Partner States is to speed up ratification Strategy encompassing mechanisms for sends a clear message that East Africans of the Protocol and proceed to implement operationalisation of counter terrorism would like to remain united in pursuit of the agreed commitments as mandated by initiatives and joint peace support economic and social development. the Protocol. operations should be developed and implemented. It also articulates a realization that peace At the regional level, a structured and security can no longer be looked at approach to conflict early warning; Best practices on sharing of information by Partner States in isolation, they have to negotiation, mediation; peace support regarding asylum seekers and refugees as be discussed openly and joint strategies operations; Disarmament, Resettlement, well as policies and strategies to combat developed to address them. Reconstruction and Rehabilitation cattle rustling embraced along with a (DDRRR), has to be formulated to prevent monitoring and evaluation framework to For the EAC, sustenance of the gains conflicts and to manage and resolve them guide Partner States’ approach to Peace made in the Customs Union and the when they have occurred. and Security developed along the AU and steps towards implementation of UN frameworks. commitments in the Common Market call In addition, mechanisms for resolution for strengthening of control over all forms of interstate conflict, and for joint Partners States should also promote good of cross border crime to ensure a peaceful counterterrorism measures; joint operation governance and foster people integration and secure environment for business to of peace support and early warning; joint and social cohesion to prevent genocide thrive and for persons and goods to move prevention and combating cattle rustling; and suppress piracy. freely. This is what the Protocol addresses. and for identification, placement and

Kenya focuses on Port of Mombasa and the Northern Corridor to Fast-Track Regional Integration and Intra-EAC Trade By Beatrice Kung’u and Bernard Mwendwa

n June last year, President Uhuru EAC Partner States. The removal of non- the contracted out Kenyatta directed that movement of tariff barriers along the Northern corridor the weigh bridges management to SGS Itransit goods from the Port of Mombasa necessitated the decongestion of the Port Kenya, a logistics firm, which has installed to Malaba be reduced to a maximum of of Mombasa through increased cargo a computerized Weighing in Motion (WIM) 5 days. At that time, it was taking on handling and ship turnaround capacity. system at the various weighbridges on the average 13 days to Malaba and 18 days Northern Corridor Transit. for goods destined for Uganda, Rwanda The expanded Port capacity is of great and Burundi. significance regionally especially for the Mr. Isaac Kamau, a Duty Manager at the EAC landlocked countries of Uganda, Athi River Weighbridge, told Jumuiya The President’s directive was part of a raft Rwanda and Burundi. It is expected to News that currently, only overloaded of measures aimed at enhancing efficiency spur not only Kenya’s economic growth, vehicles are diverted to the multi-deck at the Port of Mombasa. These initiatives, but also spur regional trade and fast- weigh bridges that are located off the which are geared towards removing non- track regional integration. It is also key to highway. All vehicles are weighed on high tariff barriers to trade (NTBs), are drivers of opening the region to global trade. speed through WIM system. regional integration and intra-EAC trade. To reduce the non-tariff barriers, focus on This, he said, has significantly reduced The Non-tariff barriers had consistently the Northern Transport Corridor called for the number of trucks diverted to weigh hindered movement of goods, people and a re-assessment of use of weighbridges bridges and reduces time on the road. All services not only in Kenya, but also the and how to minimize transit period taken weigh bridges along the Northern Transit larger EAC region thus affecting the pace by trucks transporting goods within the Corridor in Kenya have been installed with of the regional integration process. These region. Weigh-In-Motion sensors (WIM) including barriers have been identified by the Kenya Athi River, Gilgil, Mariakani, and Webuye Government, in partnership with other To improve efficiency at weighbridges, weighbridges.

Issue 29 • January - March - 2014 PAGE 20 The new Berth 19 which was launched by East African Heads of State at the KPA Mombasa Port.

Jumuiya News, also visited the Mariakani coming in and going out through the Port less than then EAC Chair, President Yoweri weighbridge, and witnessed the WIM of Mombasa. Accordingly, the efficiency of Museveni of Uganda accompanied by in operation. At the weighbridges, the the port of Mombasa is key to the fast- President Uhuru Kenyatta of Kenya and previous unsightly scenes of highways tracking of regional integration. President Paul Kagame of Rwanda. blocked for kilometres on either sides by trucks waiting to be weighed was no A meeting in June 2013 between Presidents During the commissioning, President longer evident, with only a few trucks Uhuru Kenyatta of Kenya, Paul Kagame of Uhuru noted that Cargo volumes at the sporadically diverted off the road. Rwanda and Yoweri Museveni of Uganda Port of Mombasa, which he referred to held in Uganda the three presidents had as the Eastern Africa’s trading gateway, Travelling along Nairobi –Mombasa road, noted that non-tariff barriers including had risen at unprecedented rates over the a traveler could easily fail to notice the movement of labour continued to hamper last three decades. The President said that weighbridge centres and even the WIMs intra-EAC trade and full implementation of the magnitude of the challenge posed by if they were not keen! The WIM are the Common Market. this growth had been enormous. “Before operating on a 24hour basis, enabling the present expansion, the terminal was faster movement and clearance of trucks In a joint communiqué issued after their designed to handle an annual capacity at the weighbridges. meeting and read by the Ugandan Foreign of 250,000 Twenty Equivalent Units. The Affairs Minister immediately after the demand is 900,000 Twenty Equivalent Reduction or the total elimination of non- talks, the three leaders noted that delays Units, so obviously we still have some way tariff barriers is an aspiration of all EAC in the clearing of goods at Mombasa Port to go”, he told the guests. Partner states and Kenya is moving rapidly and Malaba have also contributed to the and progressively to attain this standard. slow growth of trade within the region. He noted that the new facility reflected the expanded capacity at the Port of Mombasa This will go a long way towards the In this regard the leaders agreed to and that would enable berthing of large realization of the Vision and Mission of take immediate measures to improve container ships saying that it was the the EAC , whose main goal stems from a management of the port and expedite single largest berth capacity expansion desire by the EAC Partner States to improve clearance at the border points. undertaken in 35 years. “We have only the standards of living of the populations recently completed dredging of the through increased competitiveness, value Jumuiya News paid a visit to the Port navigable channel and widening of the added production, trade and investment, of Mombasa to bring to you an insight turning basin”, he said. aimed at promoting the sustainable into the “new narrative of efficiency” development of the region with a view from the “old narrative of congestion The President also said that the to creating a prosperous , internationally ”being rewritten through the massive Government had embarked on abling competitive, secure , stable and politically undertakings at the Port of Mombasa! It is the Port to accommodate larger vessels. united region. a story that began when the construction President Uhuru said that the port is of the Berth 19 at the Port of Mombasa critical to the region’s development and The transit of goods begins at the entry by the Kenya Ports Authority started in commissioning of Berth 19 represents the points into our country and the region 2011 and was completed in March 2013. pragmatic aspects of Kenya Government’s with the majority of goods and products It culminated in the commissioning of the commitment. “It is my Government’s from Kenya and the greater EAC region KPA Bert 19 on 28th August 2013 by no manifest intention to turn the Port

Issue 29 • January - March - 2014 PAGE 21 of Mombasa into the largest, busiest and processing and transporting cargo to as well as the aspirations of the larger most business-friendly sea-port on the East customers in a timely fashion is a critical EAC community. At the height of the African coast”, he said. indicator of the port’s productivity, he congestion at the port which led to added. massive delays in goods clearance, users President Uhuru noted that to consolidate were forced to resort to private container the role of the Port of Mombasa in the The Port of Mombasa, Jumuiya News, facilities to handle the excess capacity. transport logistics chain, road and rail was able to establish, has risen to the With the commissioning of berth 19, soon, systems must also be efficient. Receiving, expectations of the Kenya Government this scenario has greatly changed. Jumuiya

FACTS AND FIGURES gross domestic product in its first three years of operation • The new Berth 19 at the Port of Mombasa was commissioned • Rail freight set to be increased from the current four per cent on 28th August, 2013 to at least 50pc in the next few years. • The New berth is 240 meters long and brings the total length • KPA opened a liaison office Located on the Sixth Floor of of Mombasa Container Terminal to 840 meters Ultimate Tower along Ngendandumwe Avenue in the Central • New Port was constructed using material reclaimed from the Business District of Bujumbura, Burundi deep sea, mainly from dredging to deepen the Port • Liaison office to provide dedicated port services to the local • The new Berth 19 has 15 acres of stacking yard clientele • With expanded capacity, terminal can now accommodate • The total volume of Burundi cargo through the port last year three Panax at a go, each 240 meters long and carrying (2013) was 72,000 tons compared to 39,000 tons handled thousands of tones of cargo in the year 2012 representing an increase of 33,000 tons • On cargo handling Berth 19 provides an additional annual or 84.50 percent which is the highest growth in the transit capacity of 250,000 Twenty Foot Equivalent Units (TEUs) market. • Enables berthing of large container ships • Total transit cargo through the Port of Mombasa increased • Prior to commissioning of Berth 19, total cargo passing by 3.4 percent from 6.63 million tons in 2012 to 6.85 million through the port of Mombasa in 2012 was 903,463 TEUs , tons in 2013 stretching it capacity • The Port of Mombasa is 70 percent in the journey towards • Berth 19 is the single largest berth capacity expansion becoming an electronic /paperless Port undertaken in 35 years • Lamu Port-Southern Sudan- Transport corridor • Construction started in 2011 and was completed in March (LAPSSET) project was launched in March 2012 2013 • Lamu Port is expected to supplement Mombasa’s port and • Berth 19 is one of the Vision 2030 flagship projects , which help alleviate the cargo congestion is geared towards transforming Kenya into a middle class, • The project, in addition to benefiting East Africa, is expected industrialized country by year 2030 to open the region to global trade opportunities • Movement of transit goods from the Port of Mombasa to • Analysts say the project is expected to foster economic growth Malaba reduced to a maximum of 5 days from an average 18 and greater employment, more than doubling Kenya’ gross days for goods destined for the larger EAC region domestic product • Cargo clearance period had reduced to five days from nine • EAC countries determined to increase rail freight from the • Cargo transit time from Mombasa to Malaba has gone down current four per cent to at least 50pc in the next few years. to five days from the previous 13 days. • Construction of a new terminal at the Port of Mombasa with • Lamu port to contribute between 2% and 4% of the country’s three berths is scheduled for completion in 2016

A truck being loaded at a Kenya Ports Authority Berth in Mombasa in February 2014

Issue 29 • January - March - 2014 PAGE 22 A ship being off-loaded at the KPA Mombasa Port in February 2014 outlines for you the new scenario created and generate employment locally. commissioning of Berth 19 represents the by the expanded capacity as a result of the pragmatic aspects of my government’s commissioning of Berth 19 in these facts Aside from infrastructure development, commitment. It is my Government’s and figures; the Government of Kenya is also working manifest intention to turn the Port of on removal of barriers to more effective Mombasa into the largest, busiest and Apart from the Port of Mombasa, the trade through the rationalisation of most business-friendly sea-port on the East Kenya Government is also focused on procedures and systems with a view to African coast.” upgrading road and rail links with her eliminating unnecessary business costs. neighbours, starting with the building of Towards this, information technology President Museveni, the then Chair of a standard gauge railway from Mombasa at the Port of Mombasa and along the EAC, said the Port was critical in assisting to Malaba, which is part of a Railway Northern Corridor is being upgraded to producers of goods and services in the Master-plan intending that a branch line provide seamless, user-friendly interfaces region to access local and international also extends to Kisumu even as the railway between government authorities and markets. He challenged regional states to reaches Kampala and Kigali. It is intended other stakeholders. It will also sharply unite in a bid to create a bigger market for to increase rail freight from the current 4% reduce crippling red tape. Currently, the regional products and services as well as to at least 50% in the next few years. Port of Mombasa is 70 percent in the consolidate their bargaining power with journey towards becoming an electronic / major global economies and trading blocs. The new narrative at the Port of Mombasa is paperless Port. Whats New?- The KRA Simba system larger than Berth 19. The expansion of the is being upgraded to integrate with Port services include developing a second President Kenyatta emphasized Kenya’s the National Single Window System by container terminal, which is accompanied government determination to ensure Port December and all weighbridges would be by the construction of a bypass to relieve operations run smoothly; modernized and transit goods would only the Likoni Channel of traffic and ease be weighed at Mariakani and Malaba- movement of goods between Kenya and “We are looking for efficiency in order Kenya Cabinet Secretary for Transport and Tanzania. This bypass will traverse Dongo to reduce trade barriers and improve Infrastructure, Engineer Kundu, where a Special Economic Zone is opportunities for our country. This Port is during the official opening of KPA Liaison proposed to attract business to the Port critical to our region’s development and Office in Kigali.

Issue 29 • January - March - 2014 PAGE 23 East African Community Centres of Excellence - The Rift Valley Technical Training Institute in Kenya By Michael Okidi and Winnie Cheserem

A machine room at the Rift Valley Technical Training Institute. he Rift Valley Technical Training continuous improvement in both results Admission of Students from EAC Institute, which is one of the East and the way the results are achieved. Partner States. TAfrican Community Centres of The selection exercise was rigorous. It The institute has admitted students from Excellence, was started in 1962 as a begun with the parent ministry identifying the Republic of Uganda, United Republic technical and trade school. It became institutions that were excelling. The of Tanzania and the South Sudan. They a technical secondary school admitting institutions were then given questionnaires have been doing well and easily integrate students up to form four and preparing for self assessment. The last important with the Kenyan citizens. them for intermediate city and guilds step was the validation exercise which examinations. involved actual visit to the institution and The Institute is a post-secondary TVET assessment based on the actual situation institution and is a direct outgrowth of the The Institute was elevated to a high school on the ground. increasing demand for technical manpower in 1979 and started offering A-level courses attendant to rapid industrialization and in Mathematics, Physics and Chemistry. RVTTI had done well in performance attainment of Kenya’s development plan The Institute became a Technical Training contracting and by the time of assessment of becoming a middle income economy as Institute in 1986 offering Artisan, Craft, it was already ISO 9001:2008 certified. This envisaged in the Vision 2030 development and Diploma courses. assisted in ensuring that all the documents strategy. Since 1986, the student required were in place. Implementation enrolment has grown exponentially to over On 30th November 2013, the RVTTI of the two management strategies also 3,103 students as of February 2014 with was among the five selected Centres of ensured that systems were in place for a staff of 108 full time lecturers, 30 part Excellence for the East African Community. efficient and effective service delivery. time lecturers and 65 members of non- These Institutions were awarded plaques teaching staff. and certificates of excellence during the Impact of this Recognition in the 15th Ordinary Summit of the EAC Heads of Progress of the Institute The main purpose of the Institute is to State in Kampala, Uganda. As a Centre of According to the Principal, the recognition produce middle-level technicians and Excellence for the East African Community, has had a positive impact in the institute in technologists who can devote themselves RVTTI’s specific mandate is to offer that it has created a competitive advantage to national development through the Technical, Vocational and Entrepreneurship over their contemporaries. Therefore the dissemination of technical knowledge Training (TVET) courses. institution is currently experiencing a very in every field of society. The specialized high demand for a number of courses courses offered at the Institute are Selection as a Centre of Excellence in offered. As the institution progresses it has facilitated through the current eight EAC to have in mind the needs of the wider departments. A centre of excellence is an institution EAC in its future plans. that is committed to relentless pursuit of Situated in the County of Uasin

Issue 29 • January - March - 2014 PAGE 24 Gishu in Kenya along Eldoret-Kaptagat RVTTI has been voted the best institute completed in May 2014. The Ministry road, RVTTI is three kilometers to the east in the country with the most sustained of Education Science and Technology of Eldoret town which is the administrative performance in the last five years. assisted the institution acquire state of and commercial centre of Uasin Gishu the art equipment and machines from the County. The Institute is fully owned by The institute was the first to lay a fiber optic Dutch Government through the DEVOTRA the Government of Kenya (GOK) under cable and be connected to the main fiber program. the Ministry of Education Science and optic line. This has been of great benefit Technology (MoEST). to the management, staff and students in This has enhanced its capacity and quality enhancing communication and research in of training by exposing the students to Its Vision is ‘to be an International Centre education. In line with ICT integration in its modern hands on skills required by the of Excellence in Research and Technical management and teaching, the institute current labour market especially in Science Training’. While its Mission is ‘to train procured a Robust MIS system that has Engineering and Technology. The institute and produce knowledgeable, skilled, automated most of its services across plans to put up a modern hotel facility innovative and responsible manpower all departments; notably in the finance for training in hospitality and to generate in technical and business disciplines to department, examinations, student record income. These facilities shall go a long way meet the changing needs of industry and management, procurement, industrial in enhancing the institute’s capacity to society’. attachments, library services, student provide access to quality training to more admissions, accommodation and Human trainees as attendant to its mandate in The Institute is governed by a Board Resource Management. Vision 2030 development blue print. of Governors (BOG) appointed by the Cabinet Secretary, Ministry of Education The automated system also has a Collaborations and exchange programmes. Science and Technology (MoEST). The biometric system for staff to clock in and Currently RVTTI is at various stages in Principal, Mr. Edwin Tarno, carries out the clock out of duty and for use by students establishing collaborations with the day to day management of the Institute to access catering and library services. following institutions of higher learning in assisted by other heads of administrative ICT integration has been embraced in various areas: and academic departments. Mr. Tarno is teaching and learning making it keep pace also the Secretary to the Board. with changing trends in technology thus • University of Eldoret churning out quality graduates that are • University of Eastern Africa Baraton The Institute has eight departments which relevant to the needs of modern industry. • Moi University are Building and Civil Engineering; Electrical • Technical University of Kenya (formerly and Electronics Engineering; Business As part of its endeavor to increase access Kenya Polytechnic) and Developmental studies; Hospitality to quality technical education, the institute • Kenya Technical Teachers College and Dietetic Management; Mechanical completed the construction of a 4000 • Technical College System of Georgia Engineering; Automotive Engineering; square feet tuition block complex. A (USA) Medical and Applied Sciences and 1200 square feet electrical and electronics • TAFE Institute in Australia Information Communication Technology. workshop is on completion and will be • Southern Alberta Institute of In addition, the Institute has three service in use this year. It is also in the process Technology SAIT, (Canada) departments headed by departmental of putting up an ultra modern library heads (HODs) namely Industrial liaison; with a sitting capacity of 1500 to be Research and Development and Fairs and Outreach.

Achievements of the Institute RVTTI’s success is attributed to its core values Where digital meets paper which are transparency and accountability, integrity and professionalism, Magazines • Annual Reports competitiveness, efficiency, teamwork and • Catalogues • Newsletters • discipline. Flyers • Brochures • Posters • Wall, Table and Shipping Adoption and the implementation of the calendars • Note Pads • performance contracts aided the institution Desk Diaries • Book printing • to become the first tertiary institution Labels. nationwide to be ISO 9001:2008 Certified in October 2010 by the Kenya Bureau of Standards for its Quality Management Systems. The institution is now in its second cycle of ISO certification after undergoing a recertification Audit in September 2013.

The implementation of Performance Colourprint Ltd. Contracts and Quality Management P. O. Box 44466 - 00100 - GPO, Nairobi, Kenya. Systems based on ISO 9001:2008 have Industrial Area - Road-C, Off Enterprise Rd. Mob: +254 722-203 645 / 0733-203 645 complemented each other and has had For high quality and maximum Wireless: +254 20 2101740 / 41 / 42 synergistic effect in ensuring that targets efficiency in all kinds of commercial [email protected], [email protected] set are attained within the stipulated time printing... “Producing New Impressions of Excellence” and others even surpassed. Due to this, Year after Year

Issue 29 • January - March - 2014 PAGE 25 State of play of the East African Community (EAC) Single Customs Territory (SCT) and the EAC Partner States’ preparedness for its implementation. By Eliazar B. Muga he EAC Customs Union (EAC CU) Ministers on the attainment of a Single The Partner States have now embarked which came into force in 2005 is the Customs Territory (SCT) and directed on putting in place the key pre-conditions Tentry point of the integration process the Council to undertake further studies identified by the High Level Task Force in the EAC region and was guided by the on this matter and submit its report to (HLTF) such as ICT interconnectivity, Protocol establishing the EAC Customs the 13th EAC Heads of State Summit of establishment and enforcement of Union. The Protocol provided for an initial November, 2011. an Electronic Cargo Tracking System, five year period of the Customs Union establishment of a Regional Bond and implementation on transitional basis and a In September, 2011, the EAC Secretariat the Legal and Institutional Framework for fully fledged Customs Union commenced commissioned a consultancy study to make the operationalization of the EAC Single in 2010. recommendations on the modalities for Customs Territory. the attainment of the EAC Single Customs The EAC Customs Union has continued to Territory .The study was completed in The preparedness of the EAC Partner promote cross-border trade and investment March, 2012 and consequently, the States in the operationalization of the EAC with minimal customs clearance formalities Council recommended to the Summit to Single Customs Territory can be witnessed to investors and offers a more predicable adopt in principle the Destination Model by the recent deployment of Customs economic environment for both investors of Clearance of Goods where Assessment Officers from Rwanda and Uganda at the and traders across the EAC region. Private and Collection of Revenues is done at Port of Mombasa. On the other hand, sector operators based in the EAC region the first port of entry. Revenues collected Kenya has deployed the Office of the with cross-border business operations are thereafter remitted to the destination Commissioner of Customs at the Port of have been able to exploit the comparative Partner States subject to the fulfillment Mombasa to enable the Customs Officers and competitive advantages offered of key pre-conditions to be developed by from the three Partner States work closely by regional business locations, without the High Level Task Force (HLTF) on the together to fast track clearance of goods having to factor in the differences in tariff negotiations of the STC, to be appointed. to the Destination Partner States. This will protection rates, and added business address the Summit directives and reduce transaction costs arising from customs The Summit further adopted the Council Non Tariff Barriers (NTBs) in the Northern clearance formalities. recommendation at its 10th Extra- Corridor. Ordinary Summit in April 2012. The HLTF A Single Customs Territory (SCT) refers was established and developed an EAC The main challenge of the EAC SCT will to two or more customs territories which Single Customs Territory Framework with be at the ports of entry as the officers are merged to form one customs territory a Roadmap for the implementation of are likely to be over stretched due to and is an integral part of a fully-fledged the SCT by July, 2014. The Summit of added work load. In conclusion, however, Customs Union. The essential features of the EAC Heads of State at its meeting in there are more benefits arising from the a Single Customs Territory include defined November, 2013 received the report of establishment of an EAC Single Customs geographical jurisdiction; common the Council of Ministers on the EAC SCT Territory in the EAC region as was directed legal framework; common systems and anchored on the pillars of Free circulation by the Summit as this will lead into procedures; an institutional framework of goods, Revenue Management System increased intra-EAC trade as long as the which is either unified at the territorial and Legal and Institutional Framework. pre-conditions enumerated above are level or where the sub-territorial customs The Summit approved the Roadmap for put in place and enforced by the relevant administrations are interlinked through a the operationalization of the SCT. enforcement agencies. central framework; circulation of goods with no or minimal border controls; agreed mechanism for collection and sharing of customs revenue; harmonized or approximated domestic tax regimes applicable to cross-border trade and non- application of Rules of Origin among others.

The EAC Single Customs Territory was initiated when the EAC Heads of State Summit met on 3rd December, 2010 and directed the EAC Council of Ministers to expedite the implementation of the roadmap for a fully fledged Customs Union. At their 9th Extra-Ordinary meeting held on 19th April, 2011, the Summit received the report of the Council of Namanga border crossing

Issue 29 • January - March - 2014 PAGE 26 President Uhuru Kenyatta flanked by his Deputy , is taken through the process of using of a national ID card for border crossing within the EAC countries, by Immigration officer Gladys Kang’ethe shortly before departing JKIA airport for an official visit to Kampala, Uganda. The East African Single Tourist Visa set to boost tourism in the region By J.N. Mwabu – Deputy Director, Productive and Services Affairs

he East African Community is in facilitate easier movement within the processes, presents a major disincentive to the process of introducing a Single region by the nationals of the Partner prospective visitors. TTourists’ Visa. This would mean that States. Generally, the introduction of a a non EAC citizen entering into any of the Single Tourist Visa is expected to ensure The Single Tourist Visa will definitely Partner States for a period not exceeding that the tourism industry contributes to augment the natural appeal of the region 90 days and whose main purpose is sustainable development in the region, and offer an opportunity to stave off the leisure, holiday or any other purpose not create employment and compliment the stiff competition from other regions in meant for remuneration or gain, would be efforts of other sectors. the continent. It is the only region where able to visit any other EAC Partner State one would experience a rich menu of the using the same visa. This will be another The idea of an EAC Single Tourist Visa was whole range of tourist attractions, from key milestone towards making East Africa mooted way back in 2006 when a decision a wide variety of rich African culture to a single tourist destination after a decision was made to put in place mechanisms to natural features including snow capped made by the EAC Council of Ministers in enhance the attractiveness of the region mountains, expansive coastal and inland 2006 to market the region as a Single Tourist as a tourist destination. In order to market beaches, vast savannas and highland Destination when attending international the region as a single tourist destination, forests coupled with a rich diversity of tourism trade fairs. Such efforts are aimed the Partner States have since been flora and fauna (plant and animal species) at boosting the performance of the participating in the International Tourism that make for an exciting experience for tourism sector in the region. Already, the Fairs of World Travel Market (WTM) and any visitor into the region. Each of the sector has been benefiting from the EAC Internationale Tourismus (ITB). It is only three Partner States has a unique product regional integration process in many ways. logical then that after the joint marketing to offer to tourists that, once combined, efforts, tourists interested in visiting the make a tour of the region one to behold. The freedom of movement of citizens within region experience convenient and seamless the region has resulted in enhanced travel movement within East Africa. For example, Kenya has expansive sea by residents within East Africa, which has beaches and world-renowned parks such contributed to boosting domestic tourism. The current practice of separate visas as the Maasai Mara which is regarded as This is in addition to non discrimination with different visa regimes for each of one of the modern day Seven Wonders in health and learning institutions which the Partner States, coupled with multiple of the World. Uganda, on the

Issue 29 • January - March - 2014 PAGE 27 Cont’d on page 29 East African Affairs, Commerce and Tourism Cabinet Secretary,Phylis Kandie(left), her Ugandan Counterpart incharge of East African Cooperation, Shem Bageine(centre)and EALA Speaker Rt.Hon. Margaret Zziwa when Mrs Kandie hosted a dinner for EALA MPs at a Nairobi hotel. Kandie hosts EALA Legislators for Dinner, stresses on Teamwork for Enhanced Public Awareness By Michael Okidi. ast African Affairs, Commerce and She similarly instructed officers in her Rt. Hon. Margaret Zziwa, who led the Tourism Cabinet Secretary, Phyllis Ministry to upscale their communication legislators, said the assembly was willing EKandie hosted a cultural dinner for campaign efforts and ensure all corners of and ready to work with Partner States in Members of the East African Legislative Kenya are accessed with the integration promoting public awareness about the Assembly (EALA), and stressed the need message, noting that Kenyan graduates, EAC integration for the citizens to reap for joint efforts in sensitizing East Africans youths, traders and other professionals maximum available benefits from the on the benefits of East African Community should be aware of the opportunities same. integration. available for them in the EAC integration journey. The Speaker said that Members of the Mrs Kandie told the regional legislators to Assembly would continue engaging the seek out workable joint ways of enhancing Mrs Kandie said that with the EAC racing public in debates about the integration public understanding of the integration fast towards full integration with the process as a way of involving them in process, if East Africans are to appreciate, recent signing of the Monetary Union, important decisions and steps through the own and work for the sustainability of the there was need for constant engagement integration roadmap. regional bloc. with the people and gauge their opinions and ideas on how the implementation of She further revealed that as a legislature, She noted that as the political wing of the various protocols should be actualized. the Assembly was coming up with bills the community, the EALA team had the Noting that the integration agenda must that would not only hasten the integration advantage of widespread grassroots reach be people-centered, the Cabinet Secretary process, but also lend legal credence to throughout East Africa, and urged them to similarly expressed the need to fully the various decisions and regulations set make use of this advantage and sensitize sensitize East Africans on the viability of in place. their peoples on their roles and obligations the envisaged political federation, so that in the entire process. the final decision emanates from them. The occasion was also attended by Uganda’s Minister for East African Cooperation, The Cabinet Secretary noted with concern Adequate knowledge about the integration Shem Bageine, EALA Kenyan Chapter that integration communication was agenda, she noted, was also necessary if Chair Kiangoi Ombasa, State Department slow to reach the citizens, and urged the East African citizens are to appreciate of East African Affairs Principal Secretary the legislators and other stakeholders to the benefits accruable from the customs Mwanamaka Mabruki and her Commerce rethink their strategies, redouble their union and common market, both of which and Tourism Counterpart Dr Mohammed efforts and renew their commitments to are the initial and foundational pillars upon Ibrahim, among other senior ministry the awareness campaign on the integration which the community is currently standing. officials. agenda. East African Legislative Assembly Speaker,

Issue 29 • January - March - 2014 PAGE 28 Cont’d from page 27 other hand, is famous for a wide variety derive maximum value for money. proceed bilaterally under the principle of of bird species while Rwanda is popular It is in recognition of these potential ‘variable geometry’, as provided for by for its Gorrilla Treks. With the Equator benefits and owing to pressure from the EAC Treaty, not to feel constrained to passing through the region, the weather industry players that the three members move forward and introduce a joint Tourist conditions are pleasant throughout the of the Community; Kenya, Rwanda and Visa. The arrangement by the CoW will year unlike many other parts of the world Uganda agreed to fast track the process at therefore allay fears that have dogged the where extreme weather conditions are a trilateral Level. Under the auspices of the introduction of the EAC Single Tourist Visa. experienced during some seasons of the framework, the three Partner States have The arrangement will also offer learning year. concluded and rolled out a joint tourist visa experiences and provide opportunities for to be used amongst them. any areas to be addressed in preparing for Once implemented, the EAC Single the EAC Single Tourist Visa. Tourist Visa will not only increase the Although the coming together of the CoW attractiveness of the region to tourists, initially raised controversies, the issue of the Meanwhile, to support these efforts, there but also enhance the tourist experience on Single Tourist Visa had received blessings are also efforts to standardise the criteria the diversity of tourist products that EAC from the Council of Ministers, who were for the classification of Accommodation can offer and thus lengthen their stay and concerned about the length of time it was and Restaurant Establishments within the spending. It is more cost effective for the taking to conclude the preparations for region to ensure uniformity of the quality tourists visiting the region in terms of time the introduction of the Visa. They thus of services offered by the establishments. and money, thereby ensuring that they urged Partner States who were ready to Doing Business 2013 – How the EAC Economies are Fairing By Mark Ogot, Senior Assistant Director, Economic Affairs

oing Business 2013 is the 10th in a run the red light, just as most businesses This challenge was the focus of the series of annual reports investigating facing burdensome regulations will try to report. Through indicators, Doing Business Dthe regulations that enhance circumvent them to stay afloat. measures and tracks changes in the business activity and those that constrain regulations applying to domestic small and it. Doing Business presents quantitative Striking the right balance in business medium-size companies in 11 areas in their indicators on business regulations and the regulation can be a challenge. It becomes life cycle. The 2013 aggregate ranking on protection of property rights that can be an even greater challenge in a changing the ease of doing business is based on compared across 185 economies—from world, where regulations must continually indicator sets that measure and bench- Afghanistan to Zimbabwe—and over time adapt to new realities. Just as traffic mark regulations affecting 10 of those systems have to adjust when a new road areas: starting a business, dealing with Data in Doing Business 2013 are current as is being constructed, regulations need to construction permits, getting electricity, of June 1, 2012. The indicators are used to adapt to new demands from the market registering property, getting credit, analyze economic outcomes and identify and to changes in technology - such protecting investors, paying 2011/12 what reforms of business regulation have as the growing use of information and , trading across borders, enforcing worked, where and why. Economies are communication technology in business contracts and resolving insolvency. ranked on their ease of doing business, processes. from 1 – 189. A high ranking on the ease of doing business index means the regulatory environment is more conducive to the starting and operation of a local firm. The index averages the country’s percentile rankings on 10 topics, made up of a variety of indicators, giving equal weight to each topic.

Just as good rules are needed to allow traffic to flow in a city, such rules are also essential to allow business transactions to flow. Good business regulations enable the private sector to thrive and businesses to expand their transaction network. But regulations put in place to safeguard economic activity and facilitate business operations, if poorly designed, can become obstacles to doing business.

They can be like traffic lights put up to prevent gridlock but ineffective if a red light lasts for an hour. Most people would A textile manufacturing plant at the Export Processing Zones in Athi River, Machakos County

Issue 29 • January - March - 2014 PAGE 29 On the overall, Rwanda was ranked 32nd reforms. These have transformed the life of And in 2007 it started using the Doing among the countries surveyed while Kenya the private sector and made it noticeably Business report as a tool to identify and 129th, Uganda 132nd, Burundi 140th, easier to do business. learn from good practices in business and Tanzania 145th. regulation and to monitor improvement. Between 2005 and 2011 Rwanda’s real Case Study - Rwanda: Rwanda was GDP per capita grew by 4.5% a year, Several elements of a successful reform ranked as the second most improved reflecting a sustained expansion of exports program were present, including political globally and most improved in Sub- and domestic investment, with flows of will and commitment at the highest Saharan Africa since 2005. To highlight key foreign direct investment also increasing level and a broadly appropriate set of lessons emerging from Rwanda’s sustained substantially. In addition, the government macroeconomic policies that created room efforts, the 2013 report features a case strengthened the foundations of in the budget to invest in reforms and study of its reform process. But Rwanda macroeconomic stability by implementing gained strong support from the donor is far from alone in the region: of the 50 cautious fiscal policies supported by a community. economies advancing the most globally number of structural and institutional since 2005, 17 are in Sub-Saharan Africa. reforms. Underpinning this, Rwanda’s The ultimate goal of the reform program The only other EAC Country in this region 2007 Economic Development and Poverty is a private sector that promotes economic was Burundi which was ranked 16th. Reduction Strategy, like its Vision 2020, growth and job creation. And the program emphasized private sector development is achieving measurable progress toward Emerging from a decade marked by civil as key to creating jobs, bringing peace, this goal. Rwanda’s consistent reforms war and political instability, Rwanda began generating wealth and ultimately to make trade easier improved the a comprehensive and ambitious campaign eliminating poverty. productivity of customs officials, who in 2000 to rebuild, foster national increased the number of documents they reconciliation and drastically reduce poverty. Also, aware of its scarce natural resources cleared annually by 39% between 2006 The government’s agenda gave priority and landlocked location, Rwanda has and 2009. to health, education, infrastructure, and focused on business regulation reform private and financial sector development, to attract foreign investment. Dubbed According to the Ministry of Trade and showing a commitment to improving “Africa’s new Singapore” by The Economist Industry, Rwanda’s export value rose from citizens’ living conditions and building a for its positive economic reforms, Rwanda $147 million in 2006 to $193 million in solid foundation for reconciliation. Starting has been effectively learning from the 2009. Rwanda recently adjusted some early on in the reform campaign, Rwanda success stories of economies like Singapore of the targets set in Vision 2020. has implemented many business regulation since the early 2000s. Most notably, it raised the income

Farmers display their produce for sale at an open air market

Issue 29 • January - March - 2014 PAGE 30 per capita target from $900 to $3,500. lawyers and judges—to ensure proper goods going through transit countries This brings the target into line with levels administration of reforms. and improving border coordination with in middle-income economies today and neighboring transit countries. reflects Rwanda’s recent growth, which Recognizing the benefits of a diverse increased income per capita to around knowledge base, Rwanda is attracting Uganda: The government of Uganda $570 in 2011. technical expertise from other countries, demonstrated that access to information to replicate good practices and build can empower citizens to monitor the The new company law adopted in 2009 capacity. And the government has quality of government services and the use introduced several concepts into Rwanda’s involved the private sector in the reform of public resources by having newspapers corporate legal system for the first time: process and maintained an open line of publish data on monthly transfers of minority shareholder rights, regulation of communication to keep entrepreneurs, civil school grants to local governments. By conflicts of interest, extensive corporate society and other stakeholders apprised of improving the ability of school and parents disclosure and directors’ duties. The new developments. to monitor how local official handled the law introduced rules requiring approval grants, the program reduced the share of by the board of directors for related-party All these efforts are showing results in grant funding lost to corruption from 80% transactions representing less than 5% of Rwanda’s regulatory performance. And to 20%. With more information, people the company’s assets and by shareholders Rwanda’s dedication to private sector can better evaluate different options and for those representing more than 5%. development, in triggering positive legal manage risks more effectively. The law strengthened the director liability reforms, has contributed substantially to its regime for breach of judiciary duties and goal of promoting national reconciliation At the same time, Uganda made it easier for related-party transactions that harm and prosperity. to transfer property by digitizing records the company. at the title registry, increasing efficiency Burundi: Globally, Burundi improved the at the assessor’s office and making it Moreover, the government has provided most in the ease of starting a business in possible for more banks to accept the incentives for Western-educated members the past year. The government reduced tax stamp duty payment. It also strengthened of the diaspora to come back home, and registration costs and created a one-stop its insolvency process by clarifying rules on has promoted an exchange of skills by shop at the Burundi Revenue Authority, the creation of mortgages, establishing opening the job market to immigrants bringing together representatives from the duties of mortgagors and mortgagees, from neighboring countries, including several agencies involved in the business defining priority rules, providing remedies Burundi, Kenya, Tanzania and Uganda. start-up process. for mortgagors and mortgagees and establishing the powers of receivers. With the aim of increasing efficiency Burundi also falls in the list of Sub- in resolving corporate insolvencies, the Saharan African countries that have had Tanzania: Tanzania made starting government enacted a new insolvency law some of the most comprehensive investor a business easier by eliminating the in 2009. But resolving insolvency remains protection reforms. Besides Lesotho requirement for inspections by health, the one area among all those included and Rwanda, such economies have also town and land officers as a prerequisite for in the ease of doing business index in updated their company laws following a business license. On the contrary it made which Rwanda still has great room for global good practices. It is also listed as one dealing with construction permits more improvement. Achieving widespread use of the economies undertaking a complete expensive by increasing the cost to obtain of the law in insolvency cases has been overhaul of their corporate, securities a building permit. In addition, it also made among the greatest regulatory reform and civil procedure laws - with Albania, importing more difficult by introducing challenges in this area. Every country faces Kosovo, Mexico, and Rwanda, that have a requirement to obtain a certificate of different development challenges. But improved the most on the strength of conformity before the imported goods Rwanda’s ambitious and complex reform investor protections as measured by Doing are shipped. Tanzania’s use of cheap program may offer lessons for others Business. means of information distribution shows seeking to reform through private sector that brochures can be an effective means development. One key to its achievements The government of Burundi made starting of creating more transparency around has been the strong commitment to a business easier by eliminating the regulatory information in low-income reform shown by Rwanda’s leaders and its requirements to have company documents economies. Other governments such as citizens. notarized, to publish information on new Burkina Faso are also following the trend. companies in a journal and to register new The government has established structures companies with the Ministry of Trade and Kenya: Kenya made paying taxes faster for building a foundation for private Industry. for companies by enhancing electronic sector development and coordinating filing systems. It is also listed among the government-wide reform efforts. And It also made obtaining a construction countries that over the past 10 years it has created a well-defined, long-term permit easier by eliminating the worldwide, have been actively improving reform strategy that informs all of the requirement for a clearance from the the regulatory environment for domestic country’s short-term development goals. Ministry of Health and reducing the cost of companies. the geotechnical study. In addition, it made The government has worked to meet the property transfers faster by establishing a In conclusion, it is clear that the EAC needs of entrepreneurs by streamlining statutory time limit for processing property Partner States have wholeheartedly regulatory processes involved in starting, transfer requests at the land registry embraced economic reforms to accelerate operating and closing a business. Beyond and reduced the time to trade across economic growth and development. This undertaking legal and administrative borders by enhancing its use of electronic is a boost to the integration process and at reforms, the government has invested data interchange systems, introducing this pace and commitment, it can only get in training for professionals—including a more efficient system for monitoring better for the East Africans.

Issue 29 • January - March - 2014 PAGE 31 Kenya Assumes Chairmanship of The East African Community (EAC) Council of Ministers Compiled by Winnie Cheserem and Beatrice Kung’u

enyan Cabinet Secretary for East African Affairs, Commerce and KTourism, Mrs. Phyllis J. Kandie, will chair the East African Community Council of Ministers for the next one year after taking over chairmanship of the Council from her Ugandan counterpart Hon. Shem Bagaine, Minister for East African Co- operation during the 28th East African Community (EAC) Council of Ministers meeting in Kampala, Uganda on 28th November 2013.

Hon. Samuel Sita of the United Republic of Tanzania will be the Rapportuer after taking over from Ms. Leontine Nzeyimana of the Republic of Burundi. Kenyan Principal Secretary for the State Department of East African Affairs, Ms. Mwanamaka Mabruki also took over as chair of the EAC Co- ordination Committee on 26th November, 2013. Upon Kenya’s ascension to EAC chairmanship, the country will be chairing Mrs Kandie addressing the EAC Summit upon assuming Chairmanship of the EAC Council of EAC meetings at all levels for this one year, Ministers. while the United Republic of Tanzania will be rapporteuring. across the line and I assure you Kenya will co-operation across a broad spectrum of lead from the front. topics. Jumuiya News brings Mrs. Kandie’s full speech during ascension to chairmanship... I believe that the implementation of the We have protocols on Peace and customs union, the common market, Security, Co-operation in Defence, Higher Secretary General Dr Richard Sezibera the monetary union and eventually the Education, the establishment of the Cabinet Colleagues from EAC States political federation should follow the Common Market, the Customs Union, framework of the EAC Treaty and Kenya Higher Education, the Protection of Lake Members of the East Africa Legislative is ready with your support to provide the Victoria Basin, Co-operation in Foreign Assembly leadership necessary to achieve this. policy and many others. Diplomats Secretariat Staff I cannot accept this responsibility in good To achieve the level of integration we Ladies and Gentlemen, conscience without paying tribute to those desire we will need more protocols and I that have led us to this point, the Heads look forward to engaging with all of you to Good morning of State that have supported this process develop and operationalize more of them and Community from the start till now, in the days and months ahead. It is a great honour for Kenya to be handed the Ministers and Parliaments across the the Chairmanship of the East African region. Your vision is alive and nearing It is my conviction that we are headed in Community and one we accept with fulfillment. the right direction and Kenya’s job will humility, enthusiasm and a keen sense of be to stay the course and steady the ship responsibility. I want to acknowledge the Secretariat although this is not to say that we will not because we rise and fall on your explore new ideas and perspectives when I wish to register our total commitment shoulders. Every step of this journey is they present a clear benefit to the cause to the EAC and I want you to know we testament to your professionalism, effort of integration and the advancement of our shall pursue the pillars of determination and commitment and I look forward to people and destiny. doggedly and we will safeguard all drawing on the same resources for the progress made to this point. journey ahead. I want to extend my gratitude to the Government and people of Uganda for This is an exciting time for the Community Throughout our history the EAC has been the warm welcome extended to me and as we are getting closer to what we have guided by Protocols between our nations my delegation. We are grateful. sought all along. It is also time to re- in many sectors and they continue to bind dedicate ourselves to see the Community us together and define our interaction and Thanks and God Bless You

Issue 29 • January - March - 2014 PAGE 32 Development of Wholesale Hub; Tier 1 retail market and Producer Business Groups (PBG’s) By Kamau Gatare, Chief Trade Development Officer and Beatrice Kung’u

Background Vision 2030 provided for the undertaking easier market access; improved facilities, of flagship projects. The flagship projects link the farmers to the markets by he Kenya Vision 2030, the country’s under the Directorate of Commerce shortening the supply chain especially of development blueprint covering the include (i) creation of 1,000 – 1,500 perishables and enhancing their efficiency Tperiod 2008 to 2030, has prioritized Produces Business Groups (PBG’s); (ii) and thus increase farmer’s income. the trade sector among other sectors to creation of at least 10 wholesale Hubs with contribute to the envisioned 10 per cent a pilot project in Maragua; and (iii) creation Some of the facilities and services to economic growth and the realization of of at least 10 Tier one Retail Markets with be provided in the wholesale hub will socio-economic development and equity a pilot project in Athi-River. include storage and cold storage facilities; in the country. warehouses; sorting, grading, washing The Projects aim to move the wholesale and packing lines; quality testing facilities; The trade sector plays a vital role towards and retail trade sector towards greater movement and parking facilities for the attainment of national development efficiency in the country’s marketing vehicles; banking services; waste and objectives and the Millennium system. The pilot projects will be models to refuse treatment and disposal; bulk Development Goals Number 1 (eradication be replicated across the country. weighing equipment; information desks; of extreme poverty and hunger) and and emergency, policing/ general security Number 8 (development of global 1) Producer Business Groups (PBG’s) and firefighting services partnerships for sustainable development). The sector comprises the distribution and The formation of PBGs, which is an 3) Tier 1 Retail market wholesale trade; retail trade; international aggregation of individual producers, is to trade; informal trade, and trade in services address the problems of fragmentation The retail sector is crucial to the country’s and electronic trade economic areas. and informality that currently exist in economy because it creates wealth and the sector. Linkages between the formal employment, reduce poverty through The wholesale and retail trade is important market operators e.g. supermarkets and increased levels of income, contribute to as it links production and consumption, formal associations of primary producers GDP and support industrialization process. both of which are projected to grow (PBGs) will be encouraged. The main Further, the retail sector is a driver in considerably as the economy heads objective of formation of PBGs is to promoting competition, innovation and towards a 10% growth projected by the integrate small producers/traders while enhancing the enterprise culture, which is Kenya Vision 2030. The wholesale and creating possibilities of economies of scale. a necessity for development of the private retail trade sub-sector accounts for 10% of sector. Kenya’s GDP; 10% of formal employment; The formation of PBGs will improve and nearly 59% of employment in the efficiency by reducing the number of A tier 1 retail market is a multi-lane outlet informal sector. players between the producer and the that offers variety and exceptionally high consumer. This will increase the earnings quality goods and services. It is usually one The Vision envisages the wholesale and of the primary producers. It will also of the largest and well known in its field retail trade moving towards greater improve the quality of the products by and enjoys both national and international efficiency in the country’s marketing system reducing the informal handling of goods. acceptance and recognition. through, among other interventions, The initiative will further enable consumers investment in infrastructure. to benefit from lower prices and higher The pilot tier 1 retail market is to be product quality. established at Athi River in Machakos Challenges in the Wholesale and Retail County. The market is aimed at linking Trade Sector 2) Wholesale Hub retailers and wholesalers at a central location with the necessary sanitary, The wholesale and retail trade sector is A wholesale Hub is a large scale purpose environmental and logistics requirements. currently facing a myriad of challenges built facility (market) designed to offer a which are hampering its optimal operation. wide range of products and services to The tier 1 market will have sales halls, These challenges include:- producers and distributors. The major trading stalls, and offer value added commodities to be marketed in the hub services including cold storage, open air 1. Fragmentation distribution and retail facility will mainly be agricultural and fish daily sales area and with ample working outlets products (perishables). spaces for retailers. In addition the markets 2. Being highly informal have the necessary social amenities which 3. Inefficient supply chain The wholesale hub, to be constructed include waste recycling facilities, toilets, 4. Poor market infrastructure at Maragua in Murang’a County, will water and transport linkages and vehicle involve the construction of fully-equipped parking space for retailers and buyers, Flagship Projects for Wholesale and integrated mega producer wholesale constructed and supplied in respect of the Retail Sector market. The market would support large- number of potential traders and buyers scale farmers around the major towns in using the markets. To address the challenges experienced in the central region; provide an avenue for the Wholesale and Retail Sector, Kenya product consolidation; infrastructure for

Issue 29 • January - March - 2014 PAGE 33 Workers at an export processing plant in Athi River, Machakos County.

Benefits of the Flagship Projects Implementation of the Flagship (x) Kenya National Chamber of The projects will have both economic and Projects Commerce & Industry (KNCCI) social benefits. These include:- The construction of the wholesale hub and tier “1” retail market facilities involves The first Medium Term Plan (2008 – 2012) (i) Eliminating price fluctuations various stakeholders in public and private envisioned the completion of 10 wholesale resulting from surpluses or shortages sectors. The projects are overseen by hubs and 10 tier one retail markets with of farm goods due to seasonal an inter-ministerial Steering Committee pilot projects at Maragua and Athi River factors. chaired by the Ministry of East African respectively, within the Plan period. This (ii) For consumers, organized markets Affairs, Commerce and Tourism. The has not been possible due to a number will provide substantial benefits, implementation is coordinated by a Sector of factors. What has been achieved in the which include better quality products Delivery team. The Committee and the implementation of the projects include:- and stable prices. Team comprise membership from the (iii) Lower levels of wastage following institutions:- 1) Development of a comprehensive (iv) Increased investment opportunities in implementation roadmap; both wholesale and retail trade (i) Ministry of East African Affairs, 2) Creation of 1,500 PBGs to feed the (v) Employment creation Commerce and Tourism wholesale hubs; (vi) Increased incomes (ii) National Treasury 3) Acquisition of land; (vii) Improvement of the supply and value (iii) Ministry of Land, Housing & Urban 4) Development of concept notes; chain efficiency Development 5) Development of preliminary cost (viii) Formalization of retail businesses (iv) Ministry of Agriculture, Livestock & estimates and scheme designs; (ix) Creation of backward linkages Fisheries 6) Undertaking of Topographical surveys; (x) Curbing the rural-urban migration (v) Min of Transport & Infrastructure and (xi) Reduction of poverty (vi) Ministry of Devolution and Planning 7) Undertaking of Geo-Technical surveys (xii) Raising the living standard of the (vii) Ministry of Industrialization and (on-going) community Enterprise Development (xiii) Improving security due to increased (viii) Vision 2030 Delivery Secretariat employment opportunities (ix) Kenya Private Sector Alliance (KEPSA)

Issue 29 • January - March - 2014 PAGE 34 East African Affairs Principal Secretary, Mwanamaka Mabruki (4th right) ,Busia County Governor,Sospeter Ojaamong (centre)at the Busia County Offices when the PS led a team from the department in touring the county. She was accompanied by the Acting Integration Secretary, Alfred Kitolo (4th left) among other senior officers. Regional Integration Centres boosting Public Awareness about EAC By Wakhungu Juma, Regional Integration Officer, Namanga he momentum towards enhancing still yearn for more information. It is in this border management and formalizing cross and consolidating gains of East regard that the State Department of East border activities to achieve efficiency and TAfrican Regional Integration has African Affairs sought to plug this hole by seamlessness. gathered steam and pace to the extent establishing the RICs. As earlier indicated, that what initially seemed to be a pipe RICs are field offices meant to spearhead As earlier indicated the RICs are the ‘eyes dream is now being felt by the public. information flow at the grassroots. and ears’ of the Department on Non At no time did Kenyans witness Regional Tariff Barriers (NTBs). The NTBs constitute Integration in action; what was being said Since the establishment of these units at technical and other requirements imposed by majority of the Kenyan public was that Busia and Namanga with others being by Partner States to limit access of goods Regional Integration was an elitist mind planned for other borders, one can rightly and services to each other’s market. game played in the lofty corridors of hotels claim that the Department has taken the This is done against regional laws, rules in cities such as Arusha, Nairobi, Dar-es- message to the people. RICs have recorded and regulations. It is in this regard that Salaam, Kampala, Kigali and Bujumbura. encouraging results. They have given the elimination of NTBs is a difficult task given Department presence in the field. At least their mutative nature. This notion, coupled with general lack of there is visibility out there. adequate awareness, prompted the State To this end, an elaborate strategy has to Department of East African Affairs (then The RICs have established a niche for be put in place to monitor and report on Ministry of East African Community) to themselves. Border agencies and catchment existing and emerging NTBs. The RICs review its mandate to ensure that there is counties continue to interact with them therefore come in handy to complete sufficient level of public awareness on EAC almost on a daily basis. The Centers the missing link. It goes without saying Integration process. have established avenues through which that RICs have cemented their place at cross border consultations and redress border points and catchment Counties. After undertaking process re-engineering mechanisms have become permanent Persons using our border points can walk and adopting an open door policy, features. Information dissemination on the into these offices and be attended to it established Regional Integration whole spectrum of Regional Integration promptly. Enquiries on various aspects of Centers (RICs) at major border points to embedded in the four (4) key pillars i.e: i) EAC activities by members of the public act as outreach offices or information Customs Unio, ii) Common Market, iii) continue to be made. empowerment centers. The express Monetary Union, iv) Political Federation mandate of these ‘listening posts’ is to has gained momentum. Border and Some issues which are within the purview augment and support the Department as business communities now have access to of the RICs continue to be addressed as and it endeavors to inform the public in real real time information. Additionally, RICs when they arise. There is now a general time on all aspects of Regional Integration. have become real time quick wins when it level of satisfaction by our stakeholders comes to providing on-the-spot solutions on the services we offer. We continue to The establishment of EAC in 2000 was to issues that require consultations and interact with border agencies including partly in response to the need to create intervention. Customs, Immigration, Kenya Plant order and lay the foundation of prosperity Health Inspectorate Services (KEPHIS), among partner states of this region. The RICs continue to be instrumental in Kenya Bureau of Standards (KEBS), Police, However, it may be noted that despite mobilizing and supporting Joint Border Livestock, Fisheries, Port Health and Private tremendous achievements emanating from Committees (JBCs) and Cross Border Trade entities such as Clearing Agents and Cross this noble venture, members of the public Associations (CBTAs) as crucial platforms in Border Associations.

Issue 29 • January - March - 2014 PAGE 35 Devolution and Planning Cabinet Secretary, Ann Waiguru (centre) with a copy of the East African Community Common Market Score card 2014, when the World Bank Sponsored Report was disseminated to stakeholders at a Nairobi Hotel. Ms. Waiguru represented her East African Affairs, Commerce and Tourism counterpart, Phylis Kandie. East African Common Market Protocol: The Scorecard By Bernard Mwendwa AC common Market Scorecard Ms. Ann Wiguru praised the teams for protocol, progress has not been quite 2014 is a comprehensive document preparing the document which she termed satisfactory and encouraging and has Emeant to assess the progress towards as vital for monitoring and evaluating indeed fallen short of the expectations of the development of a common market the pace, success and short falls in the East Africans. in capital, services, and goods across Protocol. the Partner States of the East African It further points out that the slow pace Community (EAC). It is anchored in Article Ms. Waiguru, who represented her East in the implementation of the Common 50 of the EAC Common Market Protocol African Affairs, Commerce and Tourism Market Protocol betrays the great counterpart Mrs. Phyllis Kandie said the optimism East Africans had during its Developed for the East African Secretariat launch of the Common Market and launch in July 2010 and almost has by the World Bank affiliated International commencement of its implementation on turned to despair. All partner states have Finance Corporation (IFC), the Scorecard 1st July 2010 was a great statement of a huge responsibility and duty to bring tracks down the implementation status of commitment to EAC integration agenda. about some measure of comfort as well the Common Market Protocol, pointing as optimism to the East Africans. This will out successes and seeming shortcomings “The Common Market provides for only be possible if all impediments towards for correction. progressive implementation of: free realizing the cherished goal and aspiration movement of goods, persons, services of a prosperous, competitive, secure and The scorecard is anchored on the and capital; the right of establishment; politically united East Africa are unlocked. realization that the economic growth of residence and cooperation in other areas the East African Community is dependent of mutual interest for the East Africans”, Speaking during the forum, EAC Secretary on the Common Market Protocol, making Ms. Waiguru noted. General Ambassador Dr. Richard Sezibera its rationale compelling. The Potential urged the Partner States to avoid to spur the economic scale, accelerate The Cabinet Secretary noted that the introducing restrictions to regional trade competitiveness and bring the region signing of the East African Monetary and suggested that each individual State closer to becoming a single investment Union by the 15th Summit of EAC Heads deals with such inhibiting factors to allow destination lies in the implementation of of State and Governments in Kampala, for full implementation of the Common this key milestone in the EAC Integration Uganda on 30th November, 2013 was a Market Protocol. process. further demonstration of a resolve and commitment to EAC integration process. The issues measured in the 2014 scorecard Launched at the EAC headquarters in It demonstrated the readiness and sets a springboard that will propel and Arusha in February 2014, the document willingness of regional leaders to attain a help the institution keep track of how well is expected to spearhead renewed efforts fully integrated East Africa. the private sector is facilitated to thrive at fast tracking the implementation of the in the common market. The powerful various procures and articles contained in The scorecard points out that through lessons on benefits of the common market the Common Market Protocol by the EAC the implementation of the EAC Common can only accrue once a business friendly Partner States. Market Protocol, goods, people, capital environment is created by removing the and services are able move freely across restrictions identified which hinder free Speaking when the IFC and EAC teams Partner States albeit with some difficulties movement of capital, services and goods, presented the scorecard to stakeholders due to Non-Tariff Barriers among other and by investing in regulations that place at a Nairobi hotel on February 20th 2014, reasons. Though palpable progress has no unnecessary barriers at border points. Devolution and Planning Cabinet Secretary been made towards implementing the

Issue 29 • January - March - 2014 PAGE 36 Principal Secretary Hosts Staff for Lunch By Bernard Mwendwa he State Department of East to the Staff to also deliver in their African Affairs staff were hosted respective roles. “I am adequately Tto an end year get-together convinced that each one of us knows luncheon as an appreciation gesture what is expected of us and must which also provided an opportunity therefore not be reminded of the for evaluation and forum to set same. Effective implementation of new strategies for the collective our assigned duties is the reason for responsibility towards enhanced which we were hired, while failure to service delivery and the cultivation meet the threshold of public service of team work. It was a relaxed can only call for sanctions”. She atmosphere for a refreshing reflection emphasized. of the past year. “As the Ministry of East African An open dialogue forum where Affairs, Commerce and Tourism, and members of staff appreciated the the State Department of East African strong support from the Principal Affairs in particular, we are alive to Secretary and openly raised their the high expectations that Kenyans concerns which they felt either have in us for the proper coordination slowed service delivery or even of the East African Community undermined full potential work Integration agenda”, the PS noted. force. The Principal Secretary, Ms. Mwanamaka Mabruki, who was the Part of the responsibilities that the host, assured members of staff that department was faced with, she she is alive to the challenges the staff pointed out, emanated from the face and together with the relevant assumption of the EAC chairmanship personnel will ensure that all will be by President Uhuru Kenyatta on the addressed in due course. East African Affairs Principal Secretary, Mwanamaka Mabruki November 30th. Having Kenya at the addresses members of staff during the New Year Staff Party at driving seat of the EAC integration The principal Secretary took the Kenyatta International Convention Centre (KICC). agenda, she added, was a blessing opportunity to sincerely thank which came with a call for full support the staff for making her work in the services and regional integration are met. from the Department. The import of this Department a success. She observed assignment is that everybody charged that as a family brought together by the The host emphasized that such evaluations with the various duties of promoting the common goal of building a strong and and subsequent readjustments in the integration process must double their prosperous Kenya, such get-togethers system operations can only be actualized efforts towards this goal. are meant to offer an opportunity to through individual honesty, dedication lay strategies for the succeeding year – and patriotism which are the involuntary The members of staff were challenged identifying past loopholes and thinking precedents to group success. She to embrace respect, teamwork and trust out new, progressive ideas for efficient challenged the staff members to dedicate for one another so as to enable the discharge of duties. themselves to the benefit of not only Department deliver on its mandate. She Kenyans but East Africans as well. described these as the open secrets to “The past year has gone, but the group success, which if sustained, will challenges it presented must be evaluated She reminded the Staff that the Jubilee automatically lead to optimal attainment and dealt with more aggressively and Government came to power on the of the joint goals. The PS told the officers effectively to ensure the year ahead has platform of change for national prosperity. that there can always be daily improvement more opportunities than challenges, if we That change must start with individual on this aspect to avoid solving distractive have to attain the goals for which we have public servants, ascend up the groups problems bordering on unnecessary all come together as a Department and a put together as State Departments and misunderstandings. Ministry. No external force will do it; we Ministries, and finally converge at the are under obligation to make sure that the top National Leadership into an efficient The staff, on their part, pledged to government delivers on the integration public service capable of fully meeting its support the Government in its endeavors process “The PS said. obligations to Kenyans. to create a better society for the people. They promised to be at the forefront in The luncheon gave a prospect to spot “Suffice it to say that every officer working promoting patriotism insisting that as check opportunities presented by the past in the public service must embrace honest Kenyans, they had a responsibility to year and candidly appraises the extent hard work and dedication to the service of make the country even better, and more to which they were utilized. This would this country by undertaking their assigned enjoyable to live in by avoiding the little enable the members to continue with the duties in strict accordance with the laid mistakes like corruption, laziness and efficiencies, and rectify the inefficiencies, down regulations”, The PS said. conspiracies that only lead to the erosion so that the expectations of the Kenyan She assured the staff that she would do of the gains made at the individual, group public who are the jury and who expect all in her capacity to facilitate an optimum and society levels. to reap the benefits of the government working environment, and appealed

Issue 29 • January - March - 2014 PAGE 37 East African Legislative Assembly (EALA) Speaker, Margaret Zziwa (front, middle) accompanied by other legislators from the regional assembly, on a visit to the Ol Karia Geothermal Power Plant in Naivasha, Nakuru County, during the regional legislators’ Kenyan tour. On the speaker’s right is the EALA Kenyan Chapter Chair, Joseph Kiangoi. Regional Speaker Praises Ministry as EALA Team Tours Kenya By Michael Okidi embers of the East African and to Kilifi. They also visited the Kenya society involvement in the EAC integration Legislative Assembly (EALA) meat Commission processing factory process were discussed. Mhave carried out an extensive in Machakos and the Jomo Kenyatta tour of landmark projects in Kenya as International Airport in Nairobi’s Embakasi To have a feel of Kenya’s new devolved part of efforts to enrich their grasp of key area. governance system, the MPs visited and regional projects for effective legislation of held talks with Mombasa Governor Ali integration issues. Besides touring the major projects, the Hassan Joho and his Kilifi counterpart MPs also held consultative forums with , to whom they separately The ten-day tour of four counties that various stakeholders playing key roles paid courtesy calls at the initial stage of kicked off in Mombasa on 19th March, in the regional integration process. The their tour. 2014, was aimed at equipping the various stakeholders included the Lamu legislators with adequate information Port Southern Sudan-Ethiopia Transport Further discussions on areas of mutual about key infrastructural projects and (LAPSSET) Corridor management team, interactions were also held between the issues that would offer valuable lessons Konza Techno-City project steering team, MPs and Members of the Machakos, replicable in the other EAC Partner States. Kenya Vision 2030 Secretariat and the Mombasa and Kilifi County Assemblies, Kenya Private Sector Alliance (KEPSA). and later, with the management of the Organised and sponsored by the Ministry Kenya Airports Authority in forums which of East African Affairs, Commerce and The tour also saw the regional MPs hold the legislators described as eye-opening Tourism, the tour took the EALA Members consultative meetings with members of and trend-setting. to the Mombasa Port, the Ol Karia the Parliamentary Committee on Regional Geothermal Power Station in Naivasha, Integration, members of the senate and The team also visited the University of Nakuru County, the Export Processing a cross section of the civil society with Nairobi, which has been selected Zones in Athi River, Machakos County, whom issues of private sector and civil by the EAC Secretariat as a Center

Issue 29 • January - March - 2014 PAGE 38 of Excellence. Speaking during a media the attainment of that grand regional eradication of non tariff barriers to regional briefing session in Nairobi during the EALA objective. Speaking at various stages of trade, and cited the removal of police road tour, East African Affairs, Commerce and the ten-day tour, the EALA Speaker Rt. blocks along the major transport corridor Tourism cabinet Secretary, Mrs Phyllis Hon Margaret Nantongo Zziwa praised the as a massive step in the complete removal Kandie said the tour would ensure the Kenyan Government for playing a frontline of the barriers. legislators are equipped with proper role in the EAC integration process, noting knowledge of Kenya and its landmark that the country had forged a close and Ms Zziwa observed that the tour would projects that aid regional integration. valuable working relationship with the lend valuable lessons to the EALA team regional assembly. to enable them legislate better on matters She assured the legislators of the Kenyan of integration through better decision- Government’s commitment to the She particularly cited the Ministry of East making. promotion of the EAC integration process, African Affairs, Commerce and Tourism for more particularly now that the country is organizing and sponsoring the tour, whose On his part, the EALA Kenya Chapter sitting on the chair of the regional bloc. value, she insisted, would go beyond the Chair, Joseph Kiangoi, praised President regional assembly and spread across the Uhuru Kenyatta for living up to his pledge The Cabinet Secretary further asked the region as a result of the valuable lessons to support the Assembly, and said the tour EALA Members to make use of their learnt. was only the start of a lasting close working legislative power and pass legislations that relationship between the Assembly and would speed up the integration agenda The speaker expressed satisfaction with the Kenyan Government. for the eventual benefit of all East Africans. the pace of integration and support from At the same time, Mrs Kandie appealed the five EAC Partner States, noting that He said the tour would form part of the to the EALA Members to sensitize citizens steady progress was being made in efforts Assembly’s outreach program and serve of their respective EAC Partner States to strengthen the Customs Union and the purpose of getting various stakeholders on the envisaged East African Political to realize the goals of the East African in Kenya to appreciate and support the Federation, so that the ordinary citizens Common Market protocol. She also Assembly in its legislative duties in regard get fully involved in the implementation mentioned the significant and sustained to the attainment of the ultimate goal of of the various steps that would lead to efforts Kenya was making towards the regional integration.

East African Affairs, Commerce and Tourism, Phylis Kandie (2nd left) speaks during a media briefing on the East African Legislative Assembly (EALA) MPs Kenyan tour in Nairobi. She is flanked by EALA speaker, Rt. Hon. Margaret Zziwa (2nd right) and EALA member Peter Mathuki (right).

Issue 29 • January - March - 2014 PAGE 39 EAC Champions, led by their leader Raphael Mbatha (right) present Sanitary pads and East African Community IEC materials to the Huruma Children Home Manager, Mama Zipporah ,when the group engaged in a Corporate Social Responsibility in Ngong ,Nairobi. Looking on is his counterpart, Mr. Nyamu. EAC vuka border champions do it again! Bernard Mwendwa/Raphael Mbatha

ollowing the conclusion of the effective methods in the achievement of development among the Regional States. inaugural East African Community the EAC integration agenda. “We are looking forward to achieve 100% F(EAC) social media campaign, the success in the EAC integration, and this eventual winners, Egerton University, has Currently they have also embarked on is achievable with full involvement of embarked on an aggressive communication reaching out to orphans and vulnerable the youths in the various stages of the campaign with the aim of sensitizing the children in various parts of the country process,” says Mr. Mbatha, who expresses youth on opportunities available within where they donate sanitary towels and IEC gratitude to the Ministry of East African the Region. materials among others. Affairs, for supporting youth involvement in the Integration agenda. The champions of the Connect, Vuka Towards the end of last year, the group border Social media campaign, have engaged in Corporate Social Responsibility Mercy Mutwol, a member of the team, engaged a robust EAC awareness in issuing sanitary pads to Huruma believes that with full dedication and campaign various parts of the country and Children Home in Ngong and Lynsi Love passion, the ultimate objective of the across the region. The team has a very Orphanage in Kayole , Nairobi. They used EAC Integration will be achieved within interactive and engaging website: www. this opportunity to enlighten the local the set time limits. She says that though eacintegrationambassadors.org which communities on the EAC integration and many of the youths are currently not has helped them reach as many citizens as how they can be involved on the same. aware of the opportunities that EAC possible. Led by their team leader Raphael offers to them , the group’s sensitization K. Mbatha, the team has been engaging Mr. Mbatha who has been serving as the campaigns would eventually create the youths to participate in activities on the Deputy Secretary General of East African much needed awareness among them. integration process. Community Students Union, says that The other three members of the team for any country’s economy to grow, there are: FredrickOnyancha, Don Nyamu and Last year the team toured the5 Partner must be favorable diplomatic ties with Paul Mwangi all of whom have embraced States. The objective of the visit was to other Partner States. intensive use of blogs to create the EAC enlighten the youth in the region on the awareness. need and impact of using social media Such a relationship, he insists, is a like face book and tweeter as a cheap but prerequisite an unrestricted trade and

Issue 29 • January - March - 2014 PAGE 40 East African Community Apex Institutions leading the way in harnessing the Community’s Integration process By Beatrice Kung’u and Joyce M’Ibari he East African Community term finance for enterprises in East Africa. and financier to both public and private integration process has been a In a region where demand for long term sector enterprises within the member Tjourney made easier as its aspirations finance is growing, the Bank has cultivated states. The Bank’s main product has been and mandate are delivered by its various a diverse client base. the medium and long term financing organs and institutions. In this issue with priority being given to professionally Jumuiya News seeks to unveil the From its founding in 1967, as a key managed projects that demonstrate institutions to its readership by highlighting institution of the East African Community, potential for high growth, generating their mandates as well as achievements. the EADB has built a proud track record substantial socio- economic benefits and Among the Apex institutions we shall supporting capital projects in both the promoting regional integration. The Bank focus on the East African Development public and private sectors. It was founded also offers supplementary products such as Bank (EADB), the Inter-University Council by the original three members of the EAC asset leasing, equity financing, short term of East Africa (IUCEA), the Lake Victoria – Kenya, Uganda and Tanzania – with a finance for working capital, trade finance Fisheries Organization (LVFO), and the mandate to stimulate economic growth and real estate development finance. Civil Aviation Safety and Security Oversight and social progress in the region. Source: www.eadb.org Authority (CASSOA). The EADB reached its nadir in 1977 when East African Community focus on The East African Development Bank its parent organization, the EAC collapsed. Higher Education - A Case of the (EADB) During this time, most EAC agencies Inter-University Council for East Africa The East African Development Bank (EADB) foundered in the wake of the turmoil (IUCEA) is the apex financial institution of the East occasioned by the disintegration of the The second institution is the Inter-University African Community and in addition to EAC. To its credit, the EADB survived, Council for East Africa (IUCEA), one of the development finance and cognate services largely by dint of the commitments institutions which were recognized by the performs key roles in regional integration made by the Member States which were EAC upon its re-establishment, IUCEA as including offering development advice signatories to the EADB Treaty. one of the surviving institutions of the to member states of the East African former Community. Community. It has been in existence for While from the outset, the EADB built a the last 46 years, having been established loan portfolio primarily in the industrial, Historical Background in 1967 under the treaty of the then East service and agricultural sectors in the three In East Africa regional higher education African Cooperation. It was established founder states, it has evolved to become interactions and cooperation originates as a development finance institution to a trailblazer in private equity investment from the pre-independence era when provide financial and related assistance to and financing of SMEs (Small and Medium University College was the only enterprises in the member states which, Enterprises), which had previously higher education institution in the region by their activities, are expected to make struggled to raise capital from commercial serving students from Kenya, the then a positive contribution to socio-economic banks. Tanganyika, and Zanzibar in East Africa development. as well as from the then Rhodesia and Today the Bank is poised to facilitate Nyasaland in central and southern Africa, The Bank was re-established under its own the financing of intra-regional country which now consist of Malawi, Zambia charter in 1980 after the breakup of the infrastructure that will further strengthen and Zimbabwe. Later in 1963, university East African Co-operation in 1977. Under and foster the integration of the East colleges were formed in Nairobi and Dar es this charter, the Bank’s role and mandate African economy. Salaam as constituent colleges of the then were reviewed and its operational scope University of East Africa that had been expanded to include facilitation of regional The Bank structure comprises of the established during the era of independence integration. The Bank offers a broad range following bodies; of the four countries (Uganda, Kenya, of financial services in the member states of • Governing Council Zanzibar and Tanganyika). Makerere Kenya, Uganda, Tanzania and Rwanda with • Advisory Panel College was the third constituent college an overriding objective of strengthening • The Board of Directors of the University of East Africa. socio-economic development and regional • Management integration. In 1970, the University of East Africa Management was dissolved and the University of Dar Going forward, the bank will on behalf • Vivienne Yeda, Director General es Salaam, and the of the East African Community host and • Duncan Mwesige, Resident Manager, University of Nairobi were established as manage the East African Community Uganda separate national universities for Tanzania, Development Fund and will host a resource • Desire Rumanyika ,Resident Manager, Uganda and Kenya respectively. In the Centre for public private partnerships Rwanda same year, due to the need to maintain among other financing mechanisms for • Bernard Mboha , Resident Manager, collaboration between these universities member states. Kenya the Inter-University Committee (IUC) was • Juliana Sweke, Resident Manager, established under the auspices of the Founded in 1967 as one of the key Tanzania first EAC. The role of IUC was to facilitate institutions of the East African Community, EADB’s core business is to support the contact and cooperation among the the East African Development Bank has economic development of its member three universities (University of Dar built a reputation as a provider of long states by acting as an advisor, partner es Salaam, Makerere University and

Issue 29 • January - March - 2014 PAGE 41 University of Nairobi). IUC was hosted in matters relating to higher education in by developing, promoting and Kampala, Uganda. In 1977, the former East Africa; and supporting student and staff exchange EAC collapsed and the support that IUC c. Facilitate maintenance of programmes; enhancing curriculum was receiving from the Partner States internationally comparable education development strategies and university declined. However, IUC continued to standards in East Africa so as to leadership skills and competences; and coordinate cooperation between the three promote the region’s competitiveness mainstreaming ICT into institutional universities albeit with resource constraints in higher education. core functions and general support that severely limited its functions. operations; Main Roles and Functions iii. Strengthening research support to Establishment of IUCEA a. Coordinate inter-university cooperation universities and within the Community; In 1980, after consultations involving in East Africa; iv. Strengthening higher education Permanent/Principal Secretaries responsible b. Facilitate the strategic development of quality assurance processes in for Higher Education in Uganda, Tanzania member universities; and university institutions and eventually and Kenya, the Vice Chancellors of the c. Promote internationally comparable establishing an East African system of universities in the three countries met higher education standards and quality assurance; in Nairobi (Kenya) to discuss the future systems for sustainable regional v. Enhancing regional research of the cooperation of their institutions. development. management and coordination They agreed to sign a Memorandum of systems for universities and the Understanding (MoU) committing them The IUCEA Act 2009 also mandates the Community; to maintain cooperation between their Institution to advise the EAC Partner vi. Supporting higher education research universities within the IUC framework. States on higher education matters, and to in the Community so as to establish a The MoU was subsequently signed, which contribute towards: regional education research repository also led to the transformation of IUC into a. Meeting national and regional for supporting harmonization of the current Inter-University Council for developmental needs; education systems and education East Africa (IUCEA). The MoU spelt out b. Developing quality assurance processes sector reforms; the objectives, functions, membership in order to ensure that teaching, vii. Establishing an East African qualification and governance of IUCEA, and, just like learning and research in the region framework to facilitate harmonization IUC, IUCEA continued and still is hosted achieve and maintain international of education and training systems, and in Kampala, Uganda. IUCEA played its standards; student mobility across the region, and role very well until 1992 when decline c. Assisting member universities and harmonization of skills, competences in financial support from the three other higher education institutions to and qualifications, so as to simplify governments of Kenya, Tanzania and identify and implement good practices mutual recognition of the latter; Uganda made it impossible to carry out the in institutional management and use viii. Supporting the EAC regional collaborative activities. This raised concern of resources; integration process through various about institutional sustainability and hence d. Developing Human Resource capacity strategies; and prompted a study by the Commonwealth in all disciplines of Higher Education in ix. Supporting establishment of systems Higher Education Management Services the Community; and for the university of the future by (CHEMS) between November 1998 and e. Promoting equal opportunities for promoting responsiveness of university March 1999 with a view to revitalizing all Higher Education students in East institutions in the region to both IUCEA. The aim of the study was to Africa, including those with special excellence and relevance to the society. develop a viable strategy for expansion needs. and sustainability of IUCEA. These strategies will be integrated into The Roadmap IUCEA five-year rolling strategic plans, The IUCEA Act, 2009 It is always necessary for IUCEA to starting with the 2011 – 2016 plan that is In 2009 the East African Legislative develop policy strategies that will guide currently under development. Assembly (EALA) enacted the IUCEA Act the Institution to realize its mission as 2009, thus effectively integrating IUCEA spelt out in the IUCEA Act 2009, and to The Annual Meeting into the EAC operational framework. The implement specific interventions spelt The Annual Meeting is the Apex Act spells out the objectives, functions, out in the EAC Development Strategy. Governance Organ of the Council. It institutional set up and systems of Therefore, in order to address the current consists of the following: governance and management of IUCEA. developments within the Community with • The Secretary General of the East According to the Act any University respect to higher education and research, African Community. College and degree awarding institution recently IUCEA formulated strategies in • Permanent Secretaries responsible for may apply for and get admitted to the the form of a roadmap that will guide Higher Education. IUCEA membership as long as it is properly strategic planning and specific priotization • Public/Private Corporate Members. incorporated in the EAC Partner State of the key interventions. The strategic • National Councils/Commissions for where it is operating and is pursuing interventions specified in the roadmap Science and Technology objectives that are consistent with the have already been integrated into the 4th • Private Sector. functions of IUCEA as spelt out in the Act. EAC Development Strategy (2011-2016) • Heads of the Councils/Commissions and they focus on the following areas: for Higher Education Main Objectives • Senate Representatives. a. Facilitate networking among i. Operationalizing the IUCEA Act 2009 • Representative from International universities in East Africa, and with and implementing the full integration Organizations. universities outside the region; of IUCEA into the EAC institutional • Vice-Chancellors/Principals of of both b. Provide a forum for discussion on a framework; Public and Private IUCEA member wide range of academic and other ii. Enhancing university support systems universities

Issue 29 • January - March - 2014 PAGE 42 The Executive Committee comprises of Mandate Aviation Safety and Security Oversight the EAC Secretary General, Permanent The Lake Victoria Fisheries Organization Agency (CASSOA) was established and Secretaries of Ministries responsible for (LVFO) is a regional organization under started operation on 1st June 2007, as Higher Education and Vice-Chancellors of the East African Community responsible an autonomous self-accounting body Public and Private Universities. for coordinating and managing fisheries of the East African Community (EAC) resources of Lake Victoria. The organization following the signing of the establishing The IUCEA Secretariat: The Secretariat is was formed through a Convention Protocol by the 3 founder Partner States the executive organ of the Council and signed in 1994 by the three East African on 18th April 2007 and was it formally operates under the Executive Secretary Community (EAC) Partner States of established on 18th June 2007 during the assisted by the Deputy Secretary. The other Kenya, Uganda and Tanzania sharing Lake 5th Extraordinary Summit of EAC Heads of fully fledged Units are Academic Affairs, Victoria. State held in Kampala Uganda. Accounts, Projects and Programmes, Human Resources and Administration, The objective of the LVFO is to foster Article 92 of the Treaty for the Establishment Corporate & Public Relations, Information cooperation among the Partner States of the EAC states that the Partner States Communication & Technology and Internal by harmonizing national measures, shall among others undertake to make Systems Control. The Head Quarters of the developing and adopting conservation and air transport services safe, efficient and Council is located in Kampala, Uganda. In management measures for the sustainable profitable; adopt common policies for September 2006, the IUCEA Governing utilization of living resources of Lake the development of civil air transport in Board approved the IUCEA Five-Year Victoria for maximum Socio-economic the region; harmonise civil aviation rules Rolling Strategic Plan for the Period Benefits. and regulations and coordinate measures 2006/2007/ to 2010/11. and co-operate in the maintenance of Source: www.iucea.org The functions of the LVFO high security. Pursuant to Article 92, the • Promote the proper management and primary objectives of the Agency as stated Lake Victoria Fisheries Organization optimum utilisation of fisheries and in the Protocol are to: (LVFO) other resources of the lake; Another EAC institution to be unveiled is • Enhance the capacity of existing a) Promote the safe, secure and efficient the Lake Victoria Fisheries Organization fisheries institutions; use and development of civil aviation (LVFO). Fishing is a mainstay economic • Provide a forum for discussion of the within and outside the Partner States; activity and a source of livelihood for many impacts of initiatives on the lake; b) Assist the Partner States in meeting peoples of the East African Community. • Provide for the conduct of research on their safety and security oversight The fisheries of Lake Victoria are shared the living resources of the lake and its obligations and responsibilities under between Kenya, Tanzania and Uganda environment; the Chicago Convention and its and provide an immense source of • Coordinate and undertake training Annexes; and income, employment, food and foreign and extension in all aspects of fisheries; c) Provide the Partner States with an exchange for East Africa. The lake • Consider and advise on the impact appropriate forum and structure to produces a fish catch of over 800,000 of introductions of non-indigenous discuss plan and implement common tonnes fish annually, currently worth organisms into the Lake Victoria; measures required for achieving the about US $590 million of which US $340 • Serve as a clearinghouse and a data safe and orderly development of million is generated at the shore and a bank for information on the fisheries international civil aviation through further US$ 250 million a year is earned of the lake; and the implementation of international in exports from the Nile Perch fishery. The • Promote the dissemination of standards and recommended practices lake fisheries support almost two(2) million information. relating to the safety and security of people with household incomes and meet civil aviation. the annual fish consumption needs of The Institutional Structure of LVFO almost 22 million people in the region. The main organs of the LVFO are the One of the major achievements of The EAC institution charged with this Council of Ministers; Policy Steering CASSOA since its inception has been important EAC natural resource is the Lake Committee, Executive Committee, the harmonization of regulations and Victoria Fisheries Organization (LVFO). This Fisheries Management Committee, development of guidance materials which institution’s constituents are from Kenya, Scientific Committee, Working Groups have been promulgated in the Partner Tanzania and Uganda. . The organization’s and, Beach Management Units and the States. The accession of Rwanda and aim is to harmonize, develop and adopt Secretariat. Burundi to the EAC however, means that conservation and management measures their aviation legislations and regulations for the sustainable utilization of living Funding must be harmonized to the other States. resources of Lake Victoria to optimize The programs and activities of the This is an ongoing process in which the socio-economic benefits from the basin for LVFO are funded by Partner States and Agency is actively involved. CASSOA is the three Partner States. Development Partners. The Development currently set up as a basic structure and Partners currently supporting LVFO are: is not a fully fledged safety and security LVFO is implementing fisheries co- The European Union, NORAD, Common oversight organization. However, due management on Lake Victoria, by legally Fund for Commodities (CFC) and FAO. to the dynamics of the industry among empowering fisheries communities to Source: www.lvfo.org other forces it may need to evolve into become equal and active partners with a fully fledged oversight organization. Government in fisheries management and CASSOA This will call for a review of its current development. LVFO is guiding, supporting The East African Community air safety flag mandate. CASSOA is governed by a Board and implementing the building of the is flown by the Civil Aviation Safety and of Directors and headed by an Executive capacity of communities to participate Security Oversight Agency (CASSOA) Director, Mr. Barry Kashambo. in management and is making a real Source: www.cassoa.org difference to their lives. The East African Community Civil

Issue 29 • January - March - 2014 PAGE 43 East African Court of Justice (EACJ) brings Justice closer to East African Community Citizens By Annah Nabaasa, Public Relations Assistant, EACJ and Winnie Cheserem

East African Court of Justice President Harold Nsekela (standing, right) with other guests during the EAC Heads of State Summit in Kampala, Uganda, in November, 2013. he East African Court of Justice is The sub-registries will assist EAC citizens The Governments of all the EAC Partner the Judicial Arm of the East African who feel aggrieved by laws or decisions States, through the Ministries of EAC, TCommunity and is situated at the that violate the East African Community have shown support for the Court through EAC Headquarters in Arusha, in the United Treaty and thereby undermining the goals raising public awareness on the operations Republic of Tanzania. and objectives of integration, and who of the EACJ and of the existence of the hope to have a remedial decision from sub-registries opened in their respective From August 2012 to March 2013, the the Court. The sub-registries will also Countries, for ease of access to the court. Court officially opened Sub-registries in assist in filing of references to the EACJ all East African Partner States’ capitals for preliminary rulings when need arises. It is now the duty of the citizens of East with the aim of bringing justice closer to There has been a tremendous increase in Africa to access the Regional judicial East Africans. However the Sub-registries the number of cases filed at the Court services, whether through institutions or became operational earlier in April 2012 since the sub-registries were established. their individual capacities, so as to make when Court Clerks were recruited and use of the sub-registries and support deployed to their respective offices. Indeed many litigants across East Africa regional integration in order to make a have been able to access the Court’s contribution to the realization of a truly The launch of the sub-registries began services thereby saving both time and integrated Community of nations for the with the Republic of Rwanda, (Kigali city), money. This has resulted in an increased mutual benefit of all East Africans. followed by United Republic of Tanzania workload for the Court and has created a (Dar –es Salaam), the Republic Uganda path for EAC citizens to enjoy the benefits The sub-registries are temporarily hosted (Kampala), the Republic of Kenya (Nairobi and advantages of the Regional Court. by the National Judiciaries until the Court City), and then concluded with Bujumbura, acquires its own offices in the various in the Republic of Burundi in March 2013. The National Courts have also shown Capitals. The locations of the sub-registries cooperation and preparedness to work are as follows; Burundi sub-registry is at The objective of these sub-registries is with EACJ by requesting the Court the Supreme Court, Bujumbura, Kenyan mainly to bring regional judicial services for preliminary rulings on matters of sub-registry is at the Milimani Law Courts, closer to the people and to reduce costs interpretation and application of the East Nairobi, Rwandan sub-registry is at the incurred by litigants while traveling to African Community Treaty and the validity premises, Kigali, the Tanzania Arusha for hearings. In addition, it also of regulations, directives or decisions of sub-registry is at the Court of Appeal gives an opportunity to the Partner States the Community as provided for in Article premises, Dar -es- Salaam and the Uganda to have a feel and sense of ownership of 34 of the Treaty. sub-registry is at the Supreme Court, the East African Court of Justice (EACJ). Kampala.

Issue 29 • January - March - 2014 PAGE 44 PICTORIAL

Time Out! Principal Secretary for East African Affairs, Mwanamaka Mabruki, (far left), accompanied by a section of East African Legislative East African Legislative Assembly (EALA) Kenyan MP, Judy Pareno (left), Assembly (EALA) Kenya Chapter MPs, enjoy a beach-side work-out during speaks during a workshop for Members of the Assembly, and Senior a workshop for the legislators and the senior offi cers in Mombasa in Offi cers from the State Department of East African Affairs, at a Mombasa February, 2014. Also in the picture are EALA MPs; Joseph Kiangoi (second Hotel in February, 2014. On the right is the Principal Secretary in charge right), Saoli ole Nkanai (third right) and Sarah Bonaya (fourth right). of East African Affairs, Mwanamaka Mabruki.

East African Affairs Principal Secretary, Mwanamaka Mabruki, No, this way! A fi tness instructor leads East African Affairs Principal accompanied by senior offi cers from the Department, among them, Secretary, Mwanamaka Mabruki ( third from left), East African Legislative Head of Public Communications, Beatrice Kung’u (left), Head of Human Assembly (EALA) Member, Saoli Ole Nkanai (behind the PS), and others Resource Management, Mrs. Rose Hunja (second right) and Head of ICT, in a beach work-out during a workshop cum retreat for EALA MPs and Joseph Mburu (right), during the workshop in Mombasa. Senior Ministry Offi cials in Mombasa in February.

Kenya Law Reform Commission Chairman, Mr. Mbage Ng’anga (left) and An aerial view of the Ol Karia Geothermal Power Generation Plant in his counterparts from other East African Partner States, address the media Naivasha, Nakuru County. Members of the East African Legislative during a Task-Force meeting on Approximation of National Laws in the Assembly visited the plant as part of their Kenyan tour in March, 2014. EAC context at Nyali Beach Hotel, Mombasa in February 2014.

Issue 29 • January - March - 2014 PAGE 45 PICTORIAL

Members of the East African Legislative Assembly (EALA) led by Speaker, Margaret Zziwa (front, center) and Kenyan Chair of EALA Chapter, Joseph East African Affairs, Commerce and Tourism Cabinet Secretary Phyllis Kiangoi (left), tour the Ol Karia Geothermal Power Plant in March, 2014. Kandie (third from right), her Ugandan Counterpart in Charge of East African Cooperation Shem Bageine (right) and East African Legislative Assembly (EALA) Speaker Rt. Hon. Margaret Zziwa (second right), join other EALA MPs in singing the EAC Anthem, during a dinner hosted the regional legislators at a Nairobi Hotel.

East African Affairs, Commerce and Tourism Cabinet Secretary, Phyllis Kandie (right), confers with, from left, Principal Secretary for Commerce and Tourism Dr Mohammed Ibrahim, the Ministry’s Head of Communications, Kaplich Barsito and her Personal Assistant, Esther Principal Secretary for East African Affairs, Mwanamaka Mabruki (left) Chemirmir, during a dinner she hosted for Members of the East African accompanied by Director of Administration at the State Department of Legislative Assembly (EALA) at a Nairobi Hotel. East African Affairs, Andrew Rukaria (center) arrives for a ceremony to receive Quality Management Systems (QMS) documents in preparation for the Department’s ISO certifi cation.

East African Affairs Principal Secretary, Mwanamaka Mabruki, is received by a section of staff when she arrived at the August 1998 Bomb Blast A loaded lorry crossing the Weighing in Motion sensors (which shows red Site, for a ceremony to receive the Department of East African Affairs’ indicating overloading) at the Athi River Weigh Bridge. Quality Management System (QMS) documents in preparation for its ISO certifi cation.

Issue 29 • January - March - 2014 PAGE 46 About Jumuiya Magazine

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Issue 29 • January - March - 2014 PAGE 47 EAC Presidents: Pierre Nkurunnziza (Burundi), Jakaya Kikwete (Tanzania), Uhuru Kenyatta (Kenya), Yower Museveni (Uganda) and Paul Kagame (Rwanda) during the EAC Heads of State Summit in Kampala, Uganda, November, 2013.

The Cabinet Secretary Ministry of East African Affairs, Commerce and Tourism Mrs. Phyllis Kandie (centre) East African Affairs, Commerce and Tourism Principal Secretaries Ms Mwanamaka Mabruki (left) and Dr. Ibrahim Mohamed (right) joined by the Ministry’s Heads of Departments/Institutions and other stakeholders during the launch of the Ministry’s 2013-2017 Strategic Plan at Intercontinental Hotel Nairobi. Issue 29 • January - March - 2014 PAGE 48