Battle: Dar es Salaam vs Nairobi

Battle: Dar es Salaam vs Nairobi

Geza Ulole said:

Tanzania intent on hosting EAC central bank amid objections​



SUNDAY JULY 31 2022​

EAC ledaers pic

EAC Heads of State at the recent ordinary summit in Arusha. Presidents from left: Samia Suluhu Hassan, Uhuru Kenyatta and Yoweri Museveni. PHOTO | STATE HOUSE

​

Summary​

  • The EAC is facing one of its biggest tests yet as member states fight over hosting the regional monetary institute


Nairobi/Arusha. As the East African Community focuses on deepening integration through working closely with various stakeholders, specifically the private sector as elaborated recently at the 22nd Summit of the Heads of State in Arusha, another bone of contention has erupted, this time one that involves all partner states.

Establishment of the East African Monetary Institute (EAMI) is an idea supported by all member states. However, where to host it is proving to be a real test that’s threatening the bloc’s unity.

The Tanzanian government has reiterated its commitment to hosting the EAMI which will later transform into the region’s central bank. This comes after an extensive verification exercise selected Tanzania as the preferred host country – a decision that is being vehemently objected to by Kenya and Uganda, with Rwanda and Burundi not particularly on board with the idea either.

As initially reported by our sister newspaper, The EastAfrican, EAC partner states have failed to agree on which country should host the monetary institute which is seen as a step towards implementing a single currency regime.

Selection of Tanzania as the host nation for the region’s monetary institute came after EAC partner states submitting their pitches to host the institute.

Refusal by member countries to acknowledge the East African Community Council’s decision is making the process becomes a herculean task, with Tanzania cautioning against a repeat of the verification process.

“The EAC spent resources on a verification conducted by professionals and therefore the outcome should be respected to avoid a duplication, which overburdens taxpayers,” the Tanzanian government through its EAC representative is quoted saying.

But the EAMI has become a hot potato, with member states jostling to host it, angling to avail themselves of the massive potential to attract foreign capital and become the region’s financial hub.

One of the issues brought to light is Kenya and Uganda’s questioning of the objectivity of the verification exercise. During the 42nd Council of Ministers meeting in Arusha two weeks ago, disagreements prompted the suspension of discussion on the selection of the EAMI host.

According to a businessman based in Arusha, the EAC monetary institute saga is laying bare the mistrust inherent within the bloc. “The EAC Central Bank clash is making it apparent that EAC partner states do not trust each other,” he said, further adding, “The contention must have been influenced by the big business players in the region, such as banks and other major commercial enterprises.”

The verification process to select the suitable host country was carried out in March this year and it ranked Tanzania most suitable, with a score of 86.3 percent, followed by Uganda (82.42 percent) and Burundi (78.1 percent). Kenya was the least qualified with 77.35 percent. The other partners did not express interest.

However, those that bid for the post and didn’t get selected are dissatisfied with the report and intend to take their concerns to “higher level”.

Particularly, Uganda wants the EAC Council to formally determine the headquarters of organs and institutions of the EAC such as East African Legislative Assembly, East African Court of Justice, and East African Community Competition Authority, which are “temporarily” hosted by the Secretariat in Arusha.

“The organs and institutions of the community differ in size and weight, and this should be taken into account in determining the hosting of these institutions,” said Uganda.

Apart from Uganda’s remarks, Kenya rejected the report and argued that the evaluation criteria were not universally interpreted by members of the committee and so they arrived at the wrong conclusions.

“There was a clear bias against Kenya, which was awarded lesser marks than other partner states. There is [a] need for a weighted formula to aid the determination of hosting of institutions. Hosts of the organs and institutions of the community which are not yet [determined] should be done simultaneously,” Kenya protested.

Burundi, the other country apart from the three founding members of the bloc to show interest in hosting the EAMI called for further consultations and equity, adding that the Secretariat should establish the number of institutions hosted by each partner state to guide equity.

Rwanda also advocated further consultations, saying the formula should be based on equitable distribution of institutions among partner states.

According to Kigali, some institutions are highly specialised and require certain conditions that may not be present in all partner states.

“It is important for the Council to establish the suitability of a location for hosting specific institutions of the Community,” said Rwanda in its submissions to the Council.

South Sudan, a fairly new member state in the bloc said the Council called for more consultations and consensus, taking into account that some partner states do not even host a single EAC institution.

“The principle of equity should be applied when deciding on the hosting of EAMI,” said Juba. “The Secretariat should identify the organs and institutions of the Community that are temporarily hosted in Arusha in order for them to be properly hosted by the Council.”

Tanzania, which won the verification process to host the EAMI defended the results. “The process was not flawed. All partner states participated, agreed on the outcomes and signed the Verification Report, which does not contain any divergent views,” Dodoma submitted.

Among the considerations were the potential economic benefits of the EAMI to the people of East Africa, comparative advantages (availability of qualified personnel to kick-start the EAMI and the availability of social services to staff), economies of scale, taking into account efficiency and cost-effectiveness, security, infrastructure considerations and possibility for future expansion.

The Council agreed to further consultations on the matter and is expected to make a decision during the 43rd meeting. The ministers will also consider the distribution of organs and institutions that are not yet headquartered. The Council directed the Secretariat to submit to the partner states a comprehensive analysis of the distribution of institutions before the meeting.

As the back and forth on selecting the host country for the EAMI continues, the EAC is way behind schedule in setting up relevant institutions to support a single currency. The EAMI was supposed to be up and running in 2015.

www.thecitizen.co.tz

Tanzania intent on hosting EAC central bank amid objections

Tanzania is intent on hosting the bloc’s monetary institute after winning the verification exercise despite objections from Kenya and Uganda.
www.thecitizen.co.tz www.thecitizen.co.tz
Click to expand...
Hahahaha, Kenya Kama kawaida Haina sifa inazidiwa hata na Burundi
Tony254
dyfre

Sent from my itel L5007 using JamiiForums mobile app
 
Marcelly said:
Kazoea kuwandanga utjenga lini wakati keshokutwa tu anatoka madarakani
Click to expand...


Uhuru Kenyatta built roads, rail but piled a whole load of debt​



SUNDAY JULY 31 2022​

uhunye

President Uhuru Kenyatta flagging off Kenya’s SGR phase 2A from Nairobi to Suswa on October 16, 2019 that was to terminate in Kisumu. FILE PHOTO | NMG


General Image

By JAMES ANYANZWA
More by this Author

On April 9, 2013, newly sworn-in President Uhuru Kenyatta pledged to “lead all Kenyans, those who voted for me and those who voted for our competitors” towards national prosperity firmly rooted in a rich and abiding peace.

Close to a decade later, he has achieved some of these goals but he is leaving his successor to deal with a huge burden of debt and unhappy taxpayers already battling a galloping cost of living.

It was during Kenyatta’s tenure that billions of dollars were pumped into infrastructure projects such as roads, airports, railways, ports and in energy and telecommunications.

According to government figures, his administration has built over 11,000km of tarmacked roads, compared with 2,000km built by the previous three governments.

He has increased investment in ICT, which has seen internet penetration rise to 93.9 percent in 2022, from 31.4 percent in 2013, and cellphone use increase to 131 percent from 74.9 percent in the same period.

“Infrastructure has a way of turning swamps into cities, dead spaces into high-value properties, and village shopping centres into city malls,” the President said in a speech on June 1. “Without infrastructure, there is no way of finding new possibilities. And that is why we made it one of our big push investments.”

Kenyatta’s government introduced Huduma Centres and the eCitizen online platform to ensure fast access to government services, and shifted the country to digital television and radio. This pushed the number of TV stations in the country to 130 from 14 in 2013. Radio stations increased to 204 from 130.

His Jubilee administration oversaw the reduction in lending rates by commercial banks to 12.22 percent from 17 percent in December 2013, according to data from the Central Bank.

In agriculture, coffee earnings have nearly doubled to at least Ksh110 ($0.93) per kilogramme of cherry, from Ksh60 per kilogramme in 2013, while tea export earnings increased 20 percent to Ksh136 billion ($1.15 billion) in 2021 from Ksh114 billion ($966.1 million) in 2013, according to government data.

Debt concerns​

On the economic front, the country’s GDP nearly tripled to Ksh13 trillion ($110.16 billion) from Ksh4.5 trillion ($38.13 billion) in 2013, while tax revenues more than doubled to Ksh2.03 trillion in the 2021/2022 fiscal year, from Ksh800 billion ($6.77 billion) in the 2012/2013.

However, the President has been criticised over rising public debt and high-profile corruption that rocked his administration, drying public coffers and escalating public borrowing to finance persistent budget deficits.

Critics argue that while Kenyatta put emphasis on physical infrastructure development, he failed to dedicate his energy to fight corruption, an issue that will cloud his legacy.

Senior state officials, including Cabinet and principal secretaries, have been sent home on corruption charges while others are battling court cases.

Kenyatta’s administration has been accused of doing little about multimillion dollar scandals featuring the Port of Mombasa, the standard gauge railway line, Kenya Medical Supplies Authority (Kemsa), dams that were never built such as Kimwarer and Arror, and the controversial gas to the poor project – popularly known as Gas Yetu.

In his reign, national debt jumped to Ksh8.56 trillion ($72.54 billion) in May 2022, from Ksh1.89 trillion ($16.01 billion) in June 2013, according to data from the National Treasury.

In the 2022/2023 financial year, the government has allocated Ksh1.39 trillion ($11.77 billion) towards debt repayment, comprising Ksh690.64 billion ($5.85 billion) as interest payments and Ksh702.46 billion ($5.95 billion) as redemptions.

Cost of living​

Inflation rose to 7.9 percent in June 2022 from 5.72 percent in December 2012, while the shilling weakened significantly to stand at Ksh118 against the US dollar, from Ksh85.89 in December 2013.

As the chorus on the need to tame the cost of living reached a crescendo, on July 20, President Kenyatta announced the fifth stimulus package of his regime focusing on food subsidy to cushion households from hunger.

In particular, the President sought to address the unga crisis that had seen the price of a two-kilogramme packet of maize flour reach Ksh205 ($1.73), from Ksh100 ($0.84). He termed it an engineered crisis that repeats itself just every election year and ordered price control through a government subsidy.

“I note with regret that the cost of a 2kg pack of maize-meal remains out of reach for many,” he said.

The package entailed suspension of the Railway Development Levy and Import Declaration Fee on all imported maize.

Kenyatta said the programme of subsidising maize meal by Ksh105 ($0.88) per 2kg packet was meant to lower the cost of living for vulnerable households as a sustainable solution was sought.

www.theeastafrican.co.ke

Uhuru Kenyatta built roads, rail but piled a whole load of debt

Outgoing Kenyan leader is leaving his successor to deal with a huge debt burden and unhappy taxpayers already battling a galloping cost of living.
www.theeastafrican.co.ke www.theeastafrican.co.ke

MY TAKE
Which is which 11,000 km or 11,500 km? Eti Bwn Tony254 ? Mnadanganywa mchana wote huu?
 
Teargass said:
I usually pity those Tanzanians that always try to compare Mombasa with Dar es salaam.

Click to expand...

Mwaka wa kwanza tuu wa SSH mizigo imeongezeka mara dufu,Jiwe alikuwa anazingua Sana kwa propaganda..

Lakini inachoipa faida Mombasa port ni nguvu ya Uchumi wa Nchi yenu,the same to South Africa..

Tukikuza Uchumi,hiyo volume itaongeza..

Hata hivyo tuna bandari zingine so tukijumlisha kwa pamoja tunakaribia hiyo figure ya Mombasa.👇
 

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joto la jiwe said:
Hahahaha, Kenya Kama kawaida Haina sifa inazidiwa hata na Burundi
Tony254
dyfre

Sent from my itel L5007 using JamiiForums mobile app
Click to expand...
Let us just pull out of this stupid thing called EAC. It is just nonsense. Upuuzi mtupu. Kenya being a financial hub tunaambiwa kwamba we are the least qualified to host EA monetary institute. The hatred against Kenya from some of these losers and lazybones is too much. Wivu na majungu dhidi ya Kenya. EAC has become irrelevant.
 
Tony254 said:
Let us just pull out of this stupid thing called EAC. It is just nonsense. Upuuzi mtupu. Kenya being a financial hub tunaambiwa kwamba we are the least qualified to host EA monetary institute. The hatred against Kenya from some of these losers and lazybones is too much. Wivu na majungu dhidi ya Kenya. EAC has become irrelevant.
Click to expand...
Mtaenda wapi? Mkiambiwa the only city hapo Kunyaland ni that filthy dirty Nairobi mnabisha! Ona sasa Arusha imeipita Nairobi by far!
 
Geza Ulole said:

Uhuru Kenyatta built roads, rail but piled a whole load of debt​



SUNDAY JULY 31 2022​

uhunye

President Uhuru Kenyatta flagging off Kenya’s SGR phase 2A from Nairobi to Suswa on October 16, 2019 that was to terminate in Kisumu. FILE PHOTO | NMG


General Image

By JAMES ANYANZWA
More by this Author

On April 9, 2013, newly sworn-in President Uhuru Kenyatta pledged to “lead all Kenyans, those who voted for me and those who voted for our competitors” towards national prosperity firmly rooted in a rich and abiding peace.

Close to a decade later, he has achieved some of these goals but he is leaving his successor to deal with a huge burden of debt and unhappy taxpayers already battling a galloping cost of living.

It was during Kenyatta’s tenure that billions of dollars were pumped into infrastructure projects such as roads, airports, railways, ports and in energy and telecommunications.

According to government figures, his administration has built over 11,000km of tarmacked roads, compared with 2,000km built by the previous three governments.

He has increased investment in ICT, which has seen internet penetration rise to 93.9 percent in 2022, from 31.4 percent in 2013, and cellphone use increase to 131 percent from 74.9 percent in the same period.

“Infrastructure has a way of turning swamps into cities, dead spaces into high-value properties, and village shopping centres into city malls,” the President said in a speech on June 1. “Without infrastructure, there is no way of finding new possibilities. And that is why we made it one of our big push investments.”

Kenyatta’s government introduced Huduma Centres and the eCitizen online platform to ensure fast access to government services, and shifted the country to digital television and radio. This pushed the number of TV stations in the country to 130 from 14 in 2013. Radio stations increased to 204 from 130.

His Jubilee administration oversaw the reduction in lending rates by commercial banks to 12.22 percent from 17 percent in December 2013, according to data from the Central Bank.

In agriculture, coffee earnings have nearly doubled to at least Ksh110 ($0.93) per kilogramme of cherry, from Ksh60 per kilogramme in 2013, while tea export earnings increased 20 percent to Ksh136 billion ($1.15 billion) in 2021 from Ksh114 billion ($966.1 million) in 2013, according to government data.

Debt concerns​

On the economic front, the country’s GDP nearly tripled to Ksh13 trillion ($110.16 billion) from Ksh4.5 trillion ($38.13 billion) in 2013, while tax revenues more than doubled to Ksh2.03 trillion in the 2021/2022 fiscal year, from Ksh800 billion ($6.77 billion) in the 2012/2013.

However, the President has been criticised over rising public debt and high-profile corruption that rocked his administration, drying public coffers and escalating public borrowing to finance persistent budget deficits.

Critics argue that while Kenyatta put emphasis on physical infrastructure development, he failed to dedicate his energy to fight corruption, an issue that will cloud his legacy.

Senior state officials, including Cabinet and principal secretaries, have been sent home on corruption charges while others are battling court cases.

Kenyatta’s administration has been accused of doing little about multimillion dollar scandals featuring the Port of Mombasa, the standard gauge railway line, Kenya Medical Supplies Authority (Kemsa), dams that were never built such as Kimwarer and Arror, and the controversial gas to the poor project – popularly known as Gas Yetu.

In his reign, national debt jumped to Ksh8.56 trillion ($72.54 billion) in May 2022, from Ksh1.89 trillion ($16.01 billion) in June 2013, according to data from the National Treasury.

In the 2022/2023 financial year, the government has allocated Ksh1.39 trillion ($11.77 billion) towards debt repayment, comprising Ksh690.64 billion ($5.85 billion) as interest payments and Ksh702.46 billion ($5.95 billion) as redemptions.

Cost of living​

Inflation rose to 7.9 percent in June 2022 from 5.72 percent in December 2012, while the shilling weakened significantly to stand at Ksh118 against the US dollar, from Ksh85.89 in December 2013.

As the chorus on the need to tame the cost of living reached a crescendo, on July 20, President Kenyatta announced the fifth stimulus package of his regime focusing on food subsidy to cushion households from hunger.

In particular, the President sought to address the unga crisis that had seen the price of a two-kilogramme packet of maize flour reach Ksh205 ($1.73), from Ksh100 ($0.84). He termed it an engineered crisis that repeats itself just every election year and ordered price control through a government subsidy.

“I note with regret that the cost of a 2kg pack of maize-meal remains out of reach for many,” he said.

The package entailed suspension of the Railway Development Levy and Import Declaration Fee on all imported maize.

Kenyatta said the programme of subsidising maize meal by Ksh105 ($0.88) per 2kg packet was meant to lower the cost of living for vulnerable households as a sustainable solution was sought.

www.theeastafrican.co.ke

Uhuru Kenyatta built roads, rail but piled a whole load of debt

Outgoing Kenyan leader is leaving his successor to deal with a huge debt burden and unhappy taxpayers already battling a galloping cost of living.
www.theeastafrican.co.ke www.theeastafrican.co.ke

MY TAKE
Which is which 11,000 km or 11,500 km? Eti Bwn Tony254 ? Mnadanganywa mchana wote huu?
Click to expand...
Unapenda kulialia sana wewe bongolala. Nyinyi mumejenga kilomita ngapi ndani ya miaka tisa iliyopita?
 
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