Current Trade Barriers within the East African Community

1. Electronic Cargo Tracking System (ECTS) requirement
Kenya Revenue Authority (KRA) has given June 30, 2010 deadline for trucks carrying transist goods within Kenya to install Electronic Cargo Tracking System or risk losing their licenses.

Responsible Institution/Government
-Kenya Revenue Authority/Government of Kenya

Remarks and Recommendations
-KRA instituted this measure without due consultation with industry stakeholders.
-ECTS fees add to the already high cost of doing business
-The company responsible for issuing ECTS is a monopoly and negates the principle of competition.

Recommendation:
-KRA should stay ECTS requirements pending consultations with all industry stakeholders.
-More companies should be licensed to issue ECTS to allow competition.
-The measure should be agreed upon by all East African Partner States and implemented jointly
-KRA should shoulder part of the charges.

2. Local council fees for transit cargo in kenya and Tanzania
Namanga District Council-Kajiado in Kenya and Longido in Tanzania has instituted fees using an old Act that mandates local council’s to levy fees. However, the Act restricts such fees to goods produced locally and not Transit Cargo. This measure has increased bribery and extortion as most councils are happy to take half the charges without issuing receipts

Responsible Institution/Government
-Ministry of Roads/National Highways Authority-Kenya, TANROADS-Tanzania, Uganda National Roads Authority-Uganda

Recommendation
Abolish charges immediately for transit cargo

3. Too many weigh bridges and Differential Gross Vehicle Mass (GVM) requirements at weighbridges

(GVM) for Kenya is 48 tons while it is 50 tonnes for Tanzania, and 53 tons for Zambia.

Transit trucks which have Customs seals get a problem at intermediate weighbridges due to calibration and intolerances between weighbridges.

Lack of harmonized weight requirements across East Africa Community makes administration even more challenging.

Bribery of staff to accept unrecorded loads, in itself defeats the purpose for which the weighbridges were instituted.

Recommendation
Implement agreement to harmonise GVM.

Transit trucks should be allowed to use the first weighbridge slip as a legal weight and the other weighbridges should only be checking points and should allow minor deviations up to maximum one ton to pass without any fines.

4. Police roadblocks that act as money collection points often collect money from transit trucks
A study done by Private Sector Federation of Rwanda indicates that there were 28 road blocks in Tanzania and one had to stop at nearly all of them even when carrying transit cargo.

Responsible Institution/Government
Kenya Police, Tanzania Police, Uganda Police

Recommendation
-Reduce the number of roadblocks.
-Security can be insured through regular patrols and mobile roadblocks.

5. Charges on plant import permit (PIP) at Malaba on Ugandan tea destined for auction at Mombasa
USD 15 is paid for Ugandan tea per consignment reaching the auction market at Mombasa. Uganda traders pay Shs500 for plant import permit.

Responsible institution/government
Kenya Plant Health Inspectorate Services

Recommendation
EAC Partner States should adhere to the principle of mutual recognition of standards.

6. Non recognition by Kenya for SPS certificates issued by Uganda for tea destined for Mombasa auction

Responsible Institution/Government
Kenya Plant Health Inspectorate Services

Recommendation
EAC Partner States should adhere to the principle of mutual recognition of standards.

7. Work permits for people seeking to do business
Tanzania charges $50 as permit charge for business people with national passports and $100 for those with East African Passports

Responsible Institution/Government
Department of Immigration/ Ministry of Home Affairs

Recommendation
Immediately abolish visa requirements for all citizens of EAC Partner States whether they are on business or leisure.