Fresh fighting hurts Kenya, Ethiopia trade

 

CBK headquarters in Nairobi. Foreign exchange reserves stood at Sh493bn, equivalent to 4.3 months of import cover at the end of last week. FILE 

 

By BARNABAS BII 

Trade between Kenya and Ethiopia has been disrupted by fresh clashes around Kibish on the border between the two countries.

The Kenya National Chamber of Commerce and Industry (KNCCI) said the attacks that have claimed five people in a week have scared away investors as businesses remain closed.

“The attacks must be contained since they are impacting negatively on the socio-economic status of people from the two countries,” said KNCCI chairman Turkana chapter chairman Derrick Ejore.

The fights pit pastoralists from Kenya, Ethiopia and South Sudan over pasture and water for their livestock.

“The trade between Turkanas and their counterparts from Ethiopia and South Sudan is likely to be derailed unless normalcy is restored along the common border,” said Mr Ejore.

The Turkana trade animal products for cereals from Ethiopia and South Sudan.

At the same time, environmentalists in Turkana County are opposed to plans by the Ethiopian Government to construct a dam at River Omo, arguing that it would result in the decline in water volume in Lake Turkana and interfere with commercial fishing activities.

“Water volume in Lake Turkana, which is a source of livelihood for more than 20,000 families through commercial fishing activities, is likely to decline by 60 per cent as a result of construction of the Gibe dam,” Samuel Ekidor of Friends of Lake Turkana.

River Omo drains 90 per cent of its water into Lake Turkana and the Ethiopian government has received donor funding to construct the multi-purpose dam.

According to the Kenya Marine Fisheries Research Institute, Lake Turkana has the potential to generate Sh3 billion annually if proper management plans are put in place.

The government has deployed more Kenya Marine Police personnel to patrol the lake following the recent signing of a peace agreement to contain armed conflict between the Turkana and Merrile communities.

Seven people, including an administration policeman and a Kenya Police Reservist (KPR), were recently killed at the lake by suspected Merrile raiders who also escaped with fishing gears.