The Kenya Private Sector Alliance (KEPSA) held a significant Roundtable with the Secretary General of the East African Community (EAC), H.E. Veronica Nduva, at the Nairobi Serena Hotel today. The event underscored the critical role of private sector engagement in advancing regional economic integration and enhancing the business environment within East Africa.
The Roundtable aimed to foster dialogue between KEPSA and the EAC Secretariat, focusing on how collaboration can drive regional economic growth, improve the ease of doing business, and amplify the private sector’s influence in policy discussions.
Regional Achievements and Future Prospects
The EAC has marked substantial progress in regional integration, including the introduction of the electronic EAC Passport, removal of visa requirements among member states, and the implementation of the Single Customs Territory. These measures, along with the adoption of a four-band structure, have been pivotal in streamlining regional trade.
The EAC is projected to grow by 5.1% this year and 5.7% in 2025, surpassing global and Sub-Saharan African growth averages. H.E. Veronica Nduva highlighted the need for the private sector to strike a balance between national interests and regional benefits to combat protectionism. She emphasized the importance of product diversification and value addition to leverage the over 300 million strong EAC market.
Trade Growth and Sector Opportunities
Intra-EAC trade surged by 14% to USD 12.2 billion in 2023, up from USD 10.7 billion in 2022. Overall EAC trade grew by 2.3% to USD 80.6 billion. Nduva called for increased investment in manufacturing, agriculture, and services to further bolster economic growth and regional integration.
She praised the EAC Customs Union for eliminating tariffs on intra-regional trade, resulting in a 60% increase in intra-EAC trade. The introduction of the Non-Tariff Barriers (NTB) reporting platform and the harmonization of over 1,000 standards have streamlined trade processes and ensured product quality across member states.
KEPSA’s Role and Challenges
KEPSA, representing Kenya’s private sector, has been instrumental in advocating for regional integration, including the elimination of non-tariff barriers and the revision of stringent rules. Dr. Jas Bedi, KEPSA Chair, acknowledged Kenya’s benefits from regional integration, particularly in the service sector. However, he noted ongoing challenges such as under-industrialization, high costs, and protectionist policies.
Dr. Bedi proposed the creation of a regional task force to address these issues and collaborate with the EAC Secretariat to unlock the region’s economic potential.
Key Issues and Recommendations
The Roundtable highlighted several critical areas needing attention, including the alignment of revenue collection processes among EAC member states. Carole Kariuki, KEPSA CEO, pointed out discrepancies in levies and standards that hinder trade efficiency. She advocated for a unified digital platform to streamline trade processes and enhance predictability for entrepreneurs.
Recommendations included increasing civic education on trade rules, transitioning to fully digital transactions, combating corruption at border posts, and focusing on value addition in exports.
The Roundtable concluded with a call for continued collaboration among regional businesses and a commitment to refining integration efforts to meet the evolving needs of the market.