Posted on March, 19, 2019 at 09:18 am
By Martin Mwita
Kenya is staring at tough times ahead as the diplomatic row between Uganda and Rwanda continues unabated. Nairobi has expressed concerns that a prolonged diplomatic row between the two hinterland states will hurt trade, a move that could also affect business at the port of Mombasa which is a key entry and exit point for cargo traded along the Northern Corridor.
Both the government and the business community have admitted the effects of the tiff have been felt in the country with the business community suffering the most, as Uganda comes out to accuse Rwanda of imposing a trade embargo. The standoff which escalated a fortnight ago is now threatening trade along the Northern Corridor, which runs from the Port of Mombasa to Rwanda and Burundi through Nairobi, Malaba and Uganda.
East African Community and Regional Development Cabinet Secretary Adan Mohamed expressed concern that if the standoff between the two states continues, it would hurt trade along the corridor which is heavily served by the port of Mombasa, with spiraling effects being felt in the entire East African Community.
“The Northern Corridor is a very important part of our trade programme. The Port of Mombasa, through Kampala up to Kigali is a corridor that is absolutely important. If there are any blockages along the border points, it is likely to be disruptive,” the CS warned.
Doing business
Adan, however, said the good thing about East Africa is if something happens at the border, leaders talk and those things are resolved and life moves on.
He made the remarks while addressing journalists in Nairobi on the sidelines of a government-led stakeholders forum on the ease of doing business in Kenya and the region. The sentiments came after Rwanda closed its borders with Uganda, stalling movement between the two countries.
The recent visit by President Paul Kagame to Tanzania, where he met his host President John Magufuli, also seems to have rattled Kenya as it is seen as a move by the landlocked country to secure an alternative trade route for its imports and exports.
Though 80 per cent of Rwanda’s imports come through Dar es Salaam port, major exports such as minerals, tea and coffee go through Uganda to the port of Mombasa, with its tea trading at the Mombasa Tea Auction before being exported.
Source: MediaMax Network