Philip Ngunjiri
4 February 2008
The current delays at the port of Mombasa and disruption of transport along the Northern Corridor in Kenya will see Tanzania become an alternative trade route for the landlocked countries of Uganda, Rwanda, Burundi and the Democratic Republic of Congo.
According to Lineth Oyugi, a macroeconomist at the Institute of Policy Analysis and Research, Tanzania's political stability and positive development record - as well as its position as a regional trade centre, albeit of smaller significance than Kenya - will see it benefit immensely from the current political stalemate in the latter country.
"Dar es Salaam only needs to perfect its clearance system and the port of Mombasa could become irrelevant," she said.
The same applies to Kenya's tourism industry, already hard hit by reservation cancellations as well as international travel warnings, with tourists now being redirected to Tanzania, she added.
Only last week, Tanzania and Rwanda signed an agreement that will enable the latter to use Dar es Salaam port to ferry its petroleum products.
According to Basil Mramba, Tanzania's Industry Trade and Marketing Minister, the Tanzania Ports Authority and the Tanzania Railways are working to improve handling of cargo destined for the landlocked country.
Petroleum products will be cleared at the Kurasini oil jetty in Dar es Salaam. The leader of the Rwandan delegation, Mitali Protais, who is also Industry, Commerce, Empowerment, Tourism and Co-operation Minister, said his country had been thinking for sometime now of using Dar es Salaam to ease cargo haulage.
Both countries are considering improving the facilities at the Isaka dry port to facilitate cargo destined for Rwanda. Uganda is also reported to be holding talks with the Tanzanian government on the possibility of using Dar es Salaam instead of the Mombasa port.
Currently, Dar es Salaam is unable to cope with the sudden demand for services as there has been significant redirection of cargo from Mombasa to Dar es Salaam.
Even in the long run, the transition will not be smooth as Tanzania has inherent drawbacks, including the road and rail transportation, which need total revamping. "Irrespective of the additional costs, once these neighbours get the leeway, they will not be coming back to Kenya soon," adds Ms Oyugi.
Tanzania Ports Authority communications manager Franklin Mziray says they have made arrangement to receive and handle the influx of cargo. TPA is ready to handle the rising number of containers passing through Dar es Salaam he said.
Currently, the authority is undertaking a major expansion of the port.
Road blocks, railway line destruction and violence affecting key towns in the western part of Kenya have led to shortages of food, fuel and consumer goods across the country, forcing international agencies to come in with humanitarian aid.
A two-kilometre railway line passing through the Kibera slum was damaged by rowdy youth, completely cutting off the western region. According to the Rift Valley Railways, the company running the country's rail service, the repairs cost the company Ksh12.5 million ($178,570), but the disruption cost the firm Ksh400 million ($5.7 million) in lost business.
To counter future destruction of the rail system, the Kenya government will fast-track the construction of a 17-km parallel railway bypass to supplement the portion that passes through Kibera.
The line, which is expected to be completed in nine months, will follow the Southern Road bypass and cost the government Ksh900 million ($12.8 million).
Passenger transporters too lost millions of shillings as rowdy mobs blocked key highways to western Kenya.
According to the chairman of the Matatu Owners Association, Simon Kimutai, vehicles owners have withdrawn their fleet in big numbers. "Some of our members lost their matatus to the rioters," he said.
These disruptions are not only taking their toll on the Kenyan economy, but have also begun to pressurise the regional economic landscape. Food and fuel supply lines have been severely disrupted, which will definitely boost inflation.
Prices of basic commodities and services have already shot up. Fuel is selling at between Ksh250 ($3.57) and Ksh300 ($4.28) per litre in Kericho and Kisii, two of the areas worst hit by the violence.
In Kisumu, the local economy has been seriously damaged. Several shops were looted or burned down.
Shortages of key raw materials such as milk has forced some factories to lay off some of their workers while others have shut down altogether. Worst affected is the agriculture-rich North Rift, which has been cut off from the rest of the country.
Regular supply of raw materials and access to the market are not guaranteed any more for some key manufacturers.
East African Breweries Ltd has reported loss of key facilities to protesters in North Rift, Kericho, Kisumu and Kisii.
Read comments. Write your own.
Copyright © 2008 The East African. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
It is unfortunate that we are throwing our beautiful country to the dogs. It is the high time kenyan realised in the long run, we all suffer. At some point, we will all realise that our children are not going to school, that our teachers are not teaching any more as they have been displaced, and that only selected transport companies can reach some areas.
Just imagine a scenario whereby a Hotel like Diani Beach is charging 3500/= for a double room, full-board. Kenyans, lets wake up and take care of our beautiful country.