COMMON MARKET

Kenya should backtrack on Air Tanzania, UNOC

In Summary

• KQ flights to Dar-es-salaam have been stopped because Kenya refused to allow Air Tanzania cargo to fly  out of Nairobi

• Uganda is planning to shift its fuel imports to Dar-es-salaam because has refused it permission to use the KPC pipeline

Tanzania has blocked Kenya Airways flights to Dar-es-salaam in retaliation for Kenya refusing Air Tanzania cargo flights out of Nairobi.

Kenya has also fallen out with Uganda after its refusal to allow the Uganda National Oil Company to pump its imported fuel through the KPC pipeline because UNOC does not have a Kenyan operating licence.

In consequence, Uganda says it now plans to import fuel through Dar-es-salaam, which will cause KPC to lose revenue and a good customer.

Both of these actions by Kenya are contrary to the spirit and rules of the East African Community. There are supposed to be open skies for member countries in  East Africa while it is blatantly unfair to block UNOC as it does not sell fuel in Kenya.

In any common market, there are winners and losers. Kenya has superior financial, transport and industrial services which profit from the EAC.

However, food and labour in Kenya are more expensive and here it should lose. But Kenya wants to win everywhere which is a self-defeating strategy because Kenya benefits most if the EAC succeeds.

Kenya should reverse its decisions on UNOC and Air Tanzania.

Quote of the day: "Knowledge is of no value unless you put it into practice."

Anton Chekhov
The Cherry Orchard by the Russian playwright was premiered on January 17, 1904

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