Why Kenya is in good position to grow its EA economic giant status
TRADE: Kenya is in a good position to deepen its trade and investment initiatives within East African Community (EAC) and must use this to push its regional trade agenda.
Ken Gichinga, the Chief Economist at Mentoria Economics, a business analytics consulting firm, noted that with three of its sons heading the boardrooms of three leading regional organs Kenya must use this three-pronged attack to push its regional trade agenda.
President Uhuru Kenyatta chairs the East African Community (EAC) Heads of State Summit, while Peter Mathuki was recently elected EAC Secretary General. Another Kenyan, Nick Nesbitt is the Chairman of the East African Business Community (EABC).
“So as you can see, the stars for Kenya are very well aligned. It is a very rare situation which Kenya needs to take advantage of in the next one year or so,” said Gichinga.
However, Gerrishon Ikiara, a senior lecturer at the University of Nairobi and an economics consultant said such positions are rotational within the member countries and cannot be abused.
“All things are negotiated in Arusha by a technical team led by Permanent Secretaries, with the draft sent to ministers who present it to the heads of state during their summit meetings,” he said.
Ikiara said EAC pillars like the Customs Union and Common Market, have been very well negotiated, ensuring free movement of goods and services within the EAC regional borders though trade is still being held back at the implementation.
Causing delays
“Countries like Tanzania and Uganda have not been willing to implement the protocols,” said Ikiara thereby causing delays at the border points. EAC has fully operationalised One-Stop Border Posts (OSBPs) that are aimed at reducing bureaucracy by facilitating trade and free movement of goods within the region.
OSBP border controls of the Partner States are co-located in a way that people, goods, and vehicles stop only once, in the country of entry, for both exit formalities from one Partner State and entry formalities into the other.
Although the EAC has a strong population of over 170 million and a Gross Domestic Product of $193.7 billion (Sh20.6 trillion – 2019) regional trade has been inhibited mainly by non-tariff barriers .
