Category Archives: Sasini

Kenya Agri Exports to the EU take a Hit?

An ad in the September 22 Nation newspaper  has a statement by the European Union addressed to exporters from the East African Community on changes to the tariff regime starting on October 1 owing to the failure of the two sides to sign an Economic Partnership Agreement (EPA)

There was also an article in the same paper showing that a draft has been agreed to, and that a final EPA may be signed and effected in time, but others say it is too late for this.

The new rates, while still subsidized compared to what other nation suppliers pay to export to the EU, are still a blow considering that some exports will no longer be duty-free.

EU Agri

EU newspaper ad

While some like tea, coffee beans & carnations will remain duty-free, Kenyan exporters will pay subsidized rates  of 4.5% on tilapia exports (compared to a normal EU rate of 8%), 2.5% for roast coffee (not 7.5%), 10.9% for mixed vegetables (not 14.4%), and 5% for roses and cut flowers (not 8.5%) between November and May – which includes the crucial Valentine’s Day period when some flower farms can earn half their revenue.

This caps what has been a tough year for Kenya’s  exports of tourism, tea and coffee which have all been adversely affected, and now this.  The recently released Economic Survey 2014 showed total exports declined by 3% from Kshs 518 billion in 2012 to Kshs 502 billion in 2013 (as per the Devolution Cabinet Secretary).

Kenya will  qualify for the preferential (GSP) tariffs, while Rwanda, Burundi, Uganda and Tanzania are currently considered under “least developed countries” and most of their exports to the EU will qualify for a unilateral 0% tariff.


Coffee sector revival?

66 applications for coffee ‘A’ marketing licenses have been made from a broad representation of companies eager to enter the lucrative but locally cliquish industry.

From blue chip companies, to connected holding companies to coffee farmer co-operatives and societies – applicants include Aristocrats Coffee, Cetco, Dorman’s, KPCU marketing services, Magana Holdings, Mbo-I-Kamiti Farmers, Plantation Services (Delamere), Sasini Tea & Coffee, Tetu Coffee, Tropical Farm Management, and Valentine Growers. Applications were also received from 2 firms to be coffee buyers, 6 for coffee milling and 5 for packing.

Corporate briefs


Kenya Airways has added a once a week 777 direct flight from Mombasa to London. There are several charter airlines that operate flights on this route – serving the tourism boom at the Coast.

East African has also added flights to Malindi


Sasini slump: Sasini reported a loss of 387 million shillings for the year, down from a profit of 771m the year before. Operations generated only 12 million shillings which was a steep drop from 209m in 2004. The company blamed the poor performance on over supply of tea in world markets. Sasini also entered the horticulture business during the year and will maintain a focus on the premium tea sector where demand is high.


NIC Bank has extended its banking hours and will now be open from 9 a.m. to 4 p.m. on Saturdays.

New communication Minister Mutahi Kagwe is an advocate of using the government’s shareholding in Safaricom to restructure Telkom Kenya. In an October interview in the Financial Post, he says Telkom is inefficiently run and he believes it can achieve efficiency and connectivity levels similar to India and Mauritius. Hopefully he can restore confidence to the sector after two years of Tuju’s confusion. Surprisingly dropped in the cabinet re-shuffle was Permanent Secretary Rege who has been an active player in the satellite and mobile communications sectors.

The National Oil Corporation pulled out of the running to to buy BP Oil’s Kenya assets.


Kenya Commercial Bank staff pension fund will construct 252 houses along old airport road in Embakasi.


Cosmopolitan magazine will discontinue its Kenyan issue and resume distributing the South African one locally.


The concessioning of Kenya Railways may be delayed after pensioners of the corporation filed a suit to stop the deal until their interests are secured.