Nairobi — By the end of this financial year, it could become possible for a citizen of any of the East African Community member states to get employed in any of the five countries or set up a business.
Except for Tanzania, it could also be possible for Kenyans to buy land and settle in any of the East African states once the common market is established after the signing of the protocol in three weeks' time.
EAC minister Jeffah Kingi said in Nairobi on Wednesday the five heads of state will gather on November 20 to sign the protocol, which will then kick off the process for the establishment of the common market.
Speaking after the launch of the ministry's strategic plan at the Intercontinental Hotel, Mr Kingi said the ministers had reached common ground on the protocol and sought to end fears that Tanzania could pull out of the deal.
"The negotiation period has been extremely emotional. Sometimes tempers flared, sometimes people walk away but despite all that we managed to get consensus and at the moment the agreement has been taken for fine-tuning and I believe all the heads of state will sign it," said Mr Kingi.
He said each country will then take the protocol through the process of ratification before it is adopted.
In Tanzania, for example, the Parliament is required to approve the document while in Kenya, the Cabinet will scrutinise the protocol before the ratification. Mr Kingi said July would be the earliest possible date by which each country will have gone through the ratification process.
He said the key benefits of the common market would be the free movement of services, labour and the right of establishment.
Goods originating from the member states would also have had zero rating on tariffs, allowing traders to export their products without having to pay prohibitive taxes.
The latter would give businessmen the opportunity to set up shop in any part of the region without discrimination, giving them the chance to establish their businesses anywhere in the region.
The full establishment of the common market is intended to be complete by 2012.
The plan to zero rate cement has particularly raised concerns from manufacturers in Tanzania and Uganda, who are afraid of a flood of cheap imports that could run them out of business.
Uganda is pushing for its partners in the five-member EAC Customs Union to scrap tax on the building material from the current 25 per cent. Yet to protect their turf, cement producers in Kenya and Tanzania want the levy raised to 35 per cent to lock out low-cost importers.
Their concern is that duty will be lowered and the local market will be flooded with cheap imports that are likely to put them out of business and kill their industries yet they cannot lower their prices because of the high cost of production due to expensive power.
Mr Kingi said the matter would be discussed by the states' ministries of trade and finance from November 2 to 5 in a bid to reach a middle ground on the matter. The talks could yield a solution by the end of next week, he added.
"The people producing cement here are the same ones producing cement in Uganda and their concern is not competition between Kenya, Uganda and Tanzania. The problem is cement coming from outside," he said.
The plan launched on Wednesday includes the creation of an advisory council with members from the private sector and people outside government to guide the ministry before it enters agreements.
Regional integration centres will also be established at several border points to ease access of information by those at the entry points, who will be directly affected by the gradual integration of the member states.

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