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6 | NEWSFOCUS Verbatim On July 7, 2000, the original partner states of Kenya, Uganda and United Republic of Tanzania ratified the EAC treaty establishing the East African Community. That singular move rekindled a dream by the region’s founding fathers. The Republics of Rwanda and Burundi acceded to the treaty in 2007 while the Republic of South Sudan acceded in 2016. The ultimate goal is to create of a political federation - the East African Federation. Over the last 18 years, steps have been made towards that goal, including signing a common market protocol and a monetary union protocol. The Cabinet Secretary for East African Community & Regional Development, Adan Mohamed, spoke to Ngari Gituku, Director of Government Advertising Agency (GAA) on the journey towards integration, the gains made so far and a raft of other related and ongoing efforts. What is the update on the journey towards East African integration? The journey towards an East African Federation started about 18 years ago with the coming into force of the Treaty for the Establishment of the East African Community (EAC). The EAC regional bloc brings together over 150 million people from the six-member states – Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan. The treaty provides for deepening and widening cooperation among partner states in political, economic, social and cultural fields, as well as research and technology, defence, security, legal and judicial affairs. So far, the EAC Customs Union Protocol, EAC Common Market Protocol and the EAC Monetary Union Protocol have been signed and ratified. The EAC Customs Union Protocol that came into force in 2002 provides for harmonised internal tariffs and common external tariffs. So far all intra-EAC tariffs have been eliminated. We are also implementing common rules of origin and common external tariff that guides our trade with third parties. Currently we are a fully-fledged Customs Union and we are implementing the Single Customs Territory where all intra-EAC goods are being cleared at the port of entry. The EAC Common Market Protocol provides for free movement of persons, labour, capital and services, as well as the right of services, establishment and residence. Currently, Kenya, alongside the other member states, is harmonising relevant laws to ensure that they conform to the EAC Common Market Protocol. The EAC Monetary Union Protocol intends to introduce a common currency by the year 2024. Under the anticipated single currency, partner states stand to benefit in a variety of ways, including: reduction in transaction costs associated with the exchange of currency by firms involved in import and export trade. A single currency will also facilitate faster transactions free from foreign exchange rate risks that currently exist amongst partner states. Multiple currencies discourage trade and investments among the partner states owing to uncertainties about exchange rates, and resultant transaction costs. Overall, the journey towards EAC integration is moving at a steady pace, as demonstrated by the volume of intra-EAC trade and investments. What measures have been put in place to support and fast track integration? Regional integration centres have been established in Namanga, Lungalunga and Busia to act as reference points for Kenyans on the whole spectrum of regional integration issues. We have operationalised four One-Stop Border posts in Taveta, Namanga, Busia and Malaba with a view to reducing border clearance times. We have also facilitated the removal of nine non-tariff barriers in form of road blocks located at MtitoAndei, Emali, Kibwezi, Salama, Machakos junction, Naivasha, Eldoret, Webuye and Amagoro. We have developed an operational framework for sustained engagement between the National Assembly, East African Legislative Assembly - Kenya Chapter, Ministries, Departments and Agencies, and Non-State Actors. Training workshops for cross border trade associations continue to be held in border towns, most recently in Malaba, Busia, Isebania, Namanga, Lungalunga and Taveta. We are also holding sensitisation forums on customs union, common market, monetary union and political federation with various stakeholders with a view of informing them of the available opportunities. The sensitisation workshops target the business community, border communities, youth, women, disadvantaged groups; focal point officers in MDAs; policy makers and other professionals; Members of County Assemblies and Chief Executive Committee. In addition, we are running a social media campaign dubbed ‘Ushirikiano digital’ targeting university students to provide a platform for them to interact, network and more importantly understand the commitments, obligations opportunities, projects and programmes under the EAC. The ministry is popularising the EAC anthem following Cabinet approval for hoisting of the EAC Flag in all Government offices and public institutions and singing of the EAC anthem during public functions. Sensitisation meetings are being held in various counties, schools and colleges to popularise the anthem. EAC Clubs have also been launched in 55 secondary schools in 11 counties and 38 universities and colleges to enhance interest of the youth in school on EAC integration, promote continuous dialogue, encourage advocacy on regional integration initiatives and engagement in peer sensitisation. The EAC Youth Ambassadors Platform (Kenya Chapter) has been institutionalised to enhance the participation of university students in the EAC integration process. What benefits have accrued from regional integration? The biggest benefit has been growth in intraEAC trade. The value of Kenya’s exports to EAC countries has increased from KSh64.1 billion in 2007 to KSh114.83 billion in 2017. The highest OCTOBER 2, 2018 www.mygov.go.ke Unlocking the benefits of East export flows were in 2011 and 2012, at KSh137.2 billion and KSh135 billion respectively before declining, occasioned by competition of products from Asian countries and import substitution where Partner States are establishing manufacturing plants to produce similar products initially exported by Kenya. Imports from within the EAC have grown too from goods valued at KSh12.9 billion in 2007 to KSh60.9 billion in 2017. The increasing trade volumes and value relate to facilitation of trade through establishment of a Single Customs Territory in EAC for faster clearance and movement of cargo from the port of entry to the destination. Under this arrangement Partner States using the ports of Mombasa and Dar es Salaam have stationed customs officers at the ports to clear cargo. The Single Customs Territory is aimed at reducing the cost of doing business by eliminating duplication of processes as well as reducing the administrative costs and regulatory requirements. Today, all intra-regional traded goods between Kenya, Uganda, Rwanda and Tanzania are cleared under this scheme; as well as all goods to Rwanda through Dar es Salaam Port with a turnaround of 3 to 4 days on this corridor in tandem with the reduction in turnaround time earlier realised on northern corridor. The flexibility in deployment of customs officers has further eased clearance of goods such that goods move directly from points of dispatch in a partner state to the owner’s premises in another partner state without going through further customs checks. A single declaration under Single Customs Territory is made electronically, processed and released by the authorities from the country of destination prior to loading of goods and release from the port. This has reduced documentation currently used to release goods up to destination by 80%, hence reducing the administrative burden. Real time sharing of customs information upon arrival of goods at the port has lessened internal border controls. Turnaround time of trucks from Mombasa to Kampala has reduced from 18 days to 4 days and to Kigali has reduced from 21 days to 6 days. Under the auspices of EAC, partner states have been undertaking joint development of infrastructure that act as vessels through which goods and people move within the region. Kenya has benefited through the East African Roads Network Project where the Athi River -Namanga road was rehabilitated while the Voi – Taveta road was upgraded to bitumen status to effectively reduce the cost of doing business. It has been assumed that the EAC talks towards a political federation stalled. Is anything happening? Dialogue and work towards the East African Federation are on course, alongside operationalisation of the initial pillars, namely EAC Common Market Protocol and the EAC Monetary

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