Sh45m grant to improve access to Northern Corridor

Kenya Private Sector Alliance Chairman Patrick Obath (left) and chief executive Carole Kariuki (right) at a past event. The Kenya Private Sector Alliance Thursday received a Sh45 million grant to improve the business environment and market access in the Northern corridor. Photo/DIANA NGILA  Nation Media Group

In Summary
Kepsa’s chief executive officer, Ms Carole Kariuki, said that top on the alliance’s agenda is advocating for removal of trade barriers in the region.
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The Kenya Private Sector Alliance Thursday received a Sh45 million grant to improve the business environment and market access in the Northern corridor.

The grant from Trade Mark East Africa is the second installment to Kepsa. The alliance wants to improve the economy by streamlining the trade environment in East Africa.

Kepsa’s chief executive officer, Ms Carole Kariuki, said that top on the alliance’s agenda is advocating for removal of trade barriers in the region.

“We shall spearhead campaigns for free movement of goods in the Northern Corridor and contribute to effectiveness of the implementation of the East African trade union,” she said while receiving the grant.

The barriers that Kepsa seeks to eliminate include delay of goods on transit on the roads due innefficiency at weighbridges as well as inhibiting custom taxes.

“We’llll seek audience with the government and all the stakeholders to address the barriers and come up with a solution,” said Mrs Kariuki.

Trade Mark East Africa country representative Chris Kiptoo appreciated the alliance for influencing the formulation and implementation of pro-growth policies.

Dr Kiptoo said this encouraged domestic and foreign investment in the county since it pursued national and international economic opportunities.

The Northern Corridor is the busiest and most important route in East and Central Africa.

It connects Kenya to landlocked economies of Uganda, Rwanda, Burundi and Eastern DR Congo. It also serves South Sudan.

If the corridor does not offer a favorable environment to its users, the country’s economy could deteriorate as other countries seek alternatives.

According to KPA 2012 performance data, Uganda remains the predominant transit destination of transit cargo passing through Mombasa Port accounting for 4.85 tonnes or 73.1 per cent of last year’s total transit traffic.

South Sudan, emerging as a new key transit destination, took second place after Uganda, with a total traffic of 766,656 tonnes or 11.6 per cent share of the 2012 transit traffic, followed by Democratic Republic of Congo with a total of 482,358 tonnes.