Duty remission scheme poses threat to motor vehicle-assembly sector in EAC


By Betty Maina

The motor vehicle assembling sector in Kenya may collapse if the directive to collapse tariff lines for the unassembled motor vehicles under Chapter 87 of the EAC Common External Tariff goes unchanged.

The sector which employs over 3,000 people is threatened with closure if the decision by the East African Community (EAC) Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI)’s remains.

Assemblers argue that that it might not be possible for them to operate under duty remission due to the nature of Motor Vehicle Assembly industry. The assemblers believe that duty remission scheme is very broad; it cannot accommodate importation of completely knocked down (CKD) kits under the individual tariff lines.

This is due to fact that the level of breakdown of CKD for motor vehicle to be imported has not been defined. In addition, under the remission scheme, all the parts and components of CKD to be imported are to be declared under their respective tariff lines.


Kenya's efforts to woo foreign investment get a boost as Tata commissions Sh10 billion plant

By Winnie Osika

Soda ash producers and exporter Tata Chemicals Magadi has increased its production capacity by over 50 per cent.

The company that has commissioned a Sh10 billion ash plant intends to increase production to one million tonnes in the next three years.

Following the installation of the new manufacturing plant, production has increased to 600,000 metric tonnes from 240,000  tonnes.

According to Tata Chemicals director Mr. Prasad Menon, the capacity enhancement projects recently undertaken at Tata chemicals will propel Kenya up the global ranks as the country gears up to produce close to two per cent of the world’s natural soda ash.

“The importance of this new facility is particularly vindicated by the fact that global demand for soda ash is expected to reach 58 million tonnes by 2015 against the current demand of 49 million tonnes,” says Mr Menon.

Annual production of soda ash of the new premium plant will be 360 metric tonnes but is expected to increase with time as the firm aims at producing two per cent of the world’s natural soda ash.


Kenya Commercial Bank rides on EAC integration to boost profitability

By EA Trade Review Reporter


The Kenya Commercial Bank (KCB) is a big bank not only in Kenya but in the entire East African region. It has presence in the all the five EAC partner states except Burundi where it intends to start operations early next year.

The bank ventured into Tanzania in 1997, two years before the EAC community was reestablished. Starting with only two branches in Dar-es-Salaam the bank now has 11 branches spread across the country including one in the Island of Zanzibar.

KCB CEO Dr Martin Oduor-Otieno talks about the bold move the bank took even before the EAC community that has now entered into a common market took shape. The bank had overcome the sensitivities that contributed greatly to the demise of the first community in 1977.


Top companies in EAC set standards for their suppliers

By Winnie Osika

A group of East Africa’s top consumer goods companies have agreed to use the same globally accepted standards when sourcing goods and services from their suppliers.


The companies among them Coca-Cola Central, East and West Africa , East African Breweries Limited (EABL), Nestle and Kraft Foods have agreed to work together and promote responsible sourcing, share best practices and agree on common evaluation methods.


The 24 manufactures who have formed an association AIM_PROGRESS to champion their cause say this will improve performance in the manufacturing sector by cultivating strong business principles.

Other members include Unilever, Diageo and PepsiCo.


EABL’s group CEO Mr Seni Adetu termed the initiative as a good platform for working hand in hand with their suppliers and developing mutual partnership and understanding with them.


Nissan introduces new car model into Kenyan market amidst increased competition from China manufacturers

By Winnie Osika

Car manufacturer Nissan has introduced a new model of the Nissan pickup, Hardbody NP300 into the Kenyan market.

The new model which costs between Ksh2.3 million and 3.6 million after tax is build for tough road conditions and ensures optimal fuel consumption and reduction in carbon monoxide exhaust fumes, making it eco-friendly.

“The NP300 Hardbody is a vehicle with an enviable reputation as being truly tough enough to excel in Kenya and indeed Africa condition,” said Nissan General sales manager Usha Nagpal.

“It is this compelling strength as well as its proven track record which has seen demand for it in other regions seeking the same value and proven reliability in a 1- ton Light Commercial Vehicle. (LCV)


Tetra Pak joins hands with the New KCC and the East African Dairy Develop Project to help dairy farmers.

Tetra Pak Eastern Africa Limited together with the East African Dairy Development Project and New KCC has launched a Dairy Hub for the Kokiche Farmers Group in Bureti District.

The dairy hub is to benefit over 2,000 dairy farmers in a bid to develop the dairy sector value chain and create a more sustainable source of milk in the district. Kokiche division has an estimated population of 90,000 dairy cows with each farmer averaging around 3 cows on average of 5 acres pieces of land.

"The intention is to bring together players in the local dairy value chain by sharing expertise and resources so as to increase, the quantity and quality of milk processed through the cooling plants established by EADD. This is expected to bring sustainability in the sector and ensure milk availability all year round,” said Tetra Pak’s Ken Ouma.

The innovative pilot project with an estimated value of Sh27 million has since seen the formation of the Kokiche Dairies Company Ltd, owned by over 2,000 registered shareholders in Bureti district.


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