The East African Business Council is putting pressure on Kenya to compensate Ugandans and Rwandan traders for the losses incurred during the post election violence between 2007 and 2008.

Twenty one Ugandan traders demand nearly $1.3 million for losses incurred at the height of the violence in Kenya. The total value of the losses incurred by Rwandese traders is yet to be revealed.

If Kenya agrees to compensation, this could set a precedent which should worry politicians as the country heads into elections.  

The EABC, which held talks with Kenyan President Mwai Kibaki in Nairobi last week, said in a statement, that the issue of compensation should be concluded as a matter of urgency.

The EABC recommends that the Office of the President of Kenya evaluates all the pending claims against the attorney general; analyses the evidence and the law and make proposals on which claims may be settled out of court; advise on the legal risk and arrive at a compensatory award.

Kenya, through Deputy Prime Minister Uhuru Kenyatta, undertook to expeditiously conclude the matter.

 EABC chairperson, Consolata Ndayishimiye underscored the need for the public sector both nationally and regionally to work with the private sector to address these and other challenges in order to ensure that the private sector fully plays its role as the engine of economic growth in the EAC.

Violence broke out in Kenya on December 30, 2007 after Mwai Kibaki, the incumbent, was declared winner of the presidential elections despite objections by the opposition and election observers that the vote tally was seriously flawed.

  In addition to attacks by armed groups from both sides, roadblocks along the main highways between Kenya and neighbouring countries curtailed trade and movement of goods in the region.

 Such blockades, along with other disruptions, slowed down economic growth throughout East Africa.

Before the unrest, the five countries of the East African Community — Kenya, Tanzania, Rwanda, Burundi and Uganda — expected to see their combined gross domestic product grow by 6 per cent in 2008, but the crisis led to a lower growth rate— 1.5 percentage points lower.

EABC is the apex body of business associations of the private sector from the EAC.

It was established in 1997 to foster the interests of the private sector in the integration process of the East African Community.

EABC’s  overarching objective is to be an effective change agent for fostering an enabling business environment and to promote private sector’s regional and global competitiveness in trade and investment.

EABC therefore provides a regional platform through which the business community can present their concerns at the policy level, with the aim of creating a more conducive business environment through targeted policy reforms.

EABC also works towards trade promotion through addressing challenges experienced by members at organisational and firm level; and through provision of tailored market intelligence.