Inefficiency at port hurting trade in EA

Inefficiencies facing the clearance and movement of cargo from Mombasa port through the Northern Corridor are to blame for the high costs of doing business in East Africa.

Kenya had a strong and thriving private sector in the region but the significant bottlenecks were gradually pushing away investors, said Industrialisation Cabinet Secretary Aden Mohammed Tuesday.

“Despite Kenya being the regional business hub in East Africa, high costs notably in transport and energy and other significant bottlenecks are driving the costs of doing business ultimately high,” said Mr Mohammed.

He disclosed that the government was drafting policies with county governments to revive the stalled textile industries, notably in Uasin Gishu.

Mr Mohammed was speaking in Eldoret in the company of his Transport and Infrastructure counterpart Michael Kamau during a courtesy call on Uasin Gishu Governor Jackson Mandago at his office.

The Cabinet secretaries have been on a fact-finding mission since last week on challenges facing stakeholders on the clearance of goods at the port and transportation in the Northern Corridor.

Mr Kamau said three major weighbridges – Mariakani, Mlolongo and Gilgil — would be modernised to reduce congestion on the Mombasa-Malaba highway.

The two Cabinet Secretaries also inspected the Northern Corridor from Eldoret to Malaba and told reporters in Bungoma Town that jams caused by trucks were an impediment to trade.

Bungoma Governor Ken Lusaka welcomed them to the town.

Mr Kamau said the government had partnered with the private sector for improvement of infrastructure to ensure efficiency at Malaba border.

He said a railway line from Mombasa to Nairobi would be built at a cost of Sh22 billion to ease the movement of cargo. It would later be extended to Malaba.