Uganda to abolish work permit fees for Kenya, Rwanda nationals

Kigali. Uganda will abolish work permit fees for Kenyans and Rwandan citizens from January 1, 2014, one of several reforms East African leaders launched yesterday to reduce the cost of doing business and speed up the movement of goods and people.

Presidents Paul Kagame of Rwanda, Yoweri Museveni of Uganda and Uhuru Kenyatta of Kenya met in Kigali yesterday to sign off on a Single Customs Territory (SCT) for the three countries. President Salva Kiir of South Sudan also attended the event, which followed earlier infrastructure summits in Kampala in June and Mombasa in August.

Presidents Jakaya Kikwete of Tanzania and Pierre Nkurunziza of Burundi did not attend the meeting.

Under the SCT, tax on goods imported into the three countries will be paid at Mombasa and trucks weighed only on crossing the border. In theory, all the roadblocks from Mombasa to Kigali will be eliminated and the weighbridges reduced from nine to three at most.

The summit heard that a reduction in the number of roadblocks and weighbridges had reduced the time and cost of transporting goods from Mombasa to the interior.

The cost of transporting a 20-foot container from Mombasa to Kigali is also expected to drop from $383 to $193, resulting into savings of about $45 million annually.

“There is still a long way to go,” host President Kagame said, “but we are encouraged by the progress made so far.”

President Kenyatta, who has pushed for reforms at Mombasa Port and along the highway to Malaba, said Kenya is committed to the effort.

“Today is a very happy day for me,” he said on his first visit to Rwanda as President. “I am very excited about the progress made in such a short time.”

The summit heard that ground-breaking for construction of the standard-gauge railway from Mombasa to Kigali will take place next month although details about final cost and source of funds are still to be hammered out.