East Africa

The Rwanda Utilities Regulatory Authority (RURA) announced the implementation of a distance-based fare system for public buses in Kigali. The pilot program will commence on Wednesday, December 4th, and will be implemented on the Nyabugogo-Kabuga and Downtown-Kabuga routes.

Under the new system, passengers will be required to tap in when boarding the bus and tap out at the end of their trip to ensure accurate billing. Fares will be charged per kilometer, ranging from Rwf182 for 1-2 km to Rwf855 for 25 km.

The change is expected to benefit passengers, with some routes seeing a decrease in fares, such as Downtown to Rwandex (Rwf274) and Downtown to Kanogo (Rwf205), while longer routes like Nyabugogo to Kabuga (Rwf855) will see an increase.

RURA and City of Kigali staff will be present at bus stations and stops to assist passengers and facilitate the smooth implementation of the pilot program. Passengers are encouraged to provide feedback to the authorities.

Deluxe Trucks and Buses East Africa has reported a 50% increase in sales since the start of the year, selling 92 trucks in the first half of 2024.

The positive performance comes despite a challenging economic climate in Kenya, with the Kenyan truck and bus market contracting by 17-18% compared to the same period last year.

The distributor (for Ashok Leyland Trucks and Buses) has set an ambitious target of securing the number two position in overall sales by the end of the year, focusing on the tipper segment for strategic growth.

The Kenyan truck and bus market, valued at approximately USD 2 billion, has historically been fueled by infrastructure development, urbanization, and the burgeoning e-commerce sector.

However, the current year has seen a contraction of 17-18% compared to the same period last year, attributed to economic pressures, new taxes, political protests, currency fluctuations, and rising fuel costs.

Hussein Kamal, the newly appointed General Manager of Deluxe Trucks and Buses East Africa, acknowledges these challenges, stating that “the broader economy is facing difficulties, with businesses struggling with affordability, access to capital, and high operational costs.”

Despite this, Deluxe Trucks and Buses remain optimistic, having sold 92 trucks in the first half of 2024, a significant figure considering the industry-wide slowdown.

The company has set an ambitious target of securing the number two position in overall sales by the end of the year, focusing on the tipper segment for strategic growth.

“This growth indicates the market’s potential for value-oriented products in the light and intermediate commercial vehicle segments,” says Kamal.

While our numbers may be modest compared to the competition, we believe we have immense opportunities for growth over the next year.

Kamal, an industry veteran with over 20 years of experience, attributes this positive outlook to Ashok Leyland’s competitive pricing, high-quality vehicles, and comprehensive after-sales support. The brand, positioned as a challenger, offers a unique 5-year or 500,000-kilometer warranty, making it a compelling option in the current economic environment.

The Ashok Leyland Phoenix light truck, for instance, allows customers to calculate the cost of transporting goods for up to four years, demonstrating long-term value and return on investment.

This strong value proposition has enabled Deluxe Trucks and Buses to target a 20% market share in the fast-moving consumer goods segment, which accounts for over 50% of all truck sales in Kenya, by the end of 2025.

While acknowledging the short-term economic challenges, Kamal remains cautiously optimistic about the future, predicting a period of consolidation followed by renewed growth as the economic situation stabilizes.

He emphasizes the company’s success measurement based on “cost of operations,” a metric tailored for specific market segments.

Addressing the issue of high operating costs, which often represents a significant barrier for commercial vehicle owners, Deluxe Trucks and Buses has established strategic partnerships with major commercial banks, offering customers access to up to 95% financing or refinancing.

In a bid to reduce congestion at the Busia and Malaba One-Stop Border Posts (OSBPs), the East African Community (EAC) has joined forces with the Republics of Kenya and Uganda to upgrade the Lwakhakha border post into a modern OSBP.

The transformation is expected to streamline customs procedures, reduce clearance times, and enhance collaboration between border agencies from both countries.

The upgrade, part of a larger 256km feasibility study funded by the African Development Bank (AfDB), aims to create a more conducive environment for trade and commerce, ultimately benefiting businesses and communities on both sides of the border.

The project is seen as a key milestone in fostering cross-border cooperation between Kenya and Uganda, and promoting regional integration in East Africa.

Speaking during a site visit to review the status of the ongoing feasibility study, Eng. Godfrey A. Enzama, Principal Civil Engineer at the EAC Secretariat, said that the upgrading of the Lwakhakha border post into an OSBP is a collaborative effort between the EAC, Kenya, and Uganda.

“This collaborative effort underscores the shared vision of promoting trade facilitation, border security, and regional integration in East Africa,” said Eng. Enzama.

The upgrade is expected to reduce traffic congestion at the Malaba and Busia OSBPs, boost trade along the Northern Corridor, and improve cross-border security.

The Lwakhakha border post, located on the common border between Kenya and Uganda, is strategically positioned to provide an alternative route for trade and commerce, reducing the reliance on the busy Busia and Malaba border crossings.

The feasibility study includes upgrading the existing 25km Lwakhakha – Kimaeti road and the 45km Mbale (Bumbobi) – Lwakhakha Road to a two-lane, two-way single carriageway status, with wide shoulders, to enhance capacity and accommodate current and anticipated future local and cross-border traffic volumes along the corridor.

The project is expected to have far-reaching benefits, including the promotion of high-value exports to regional markets, increased employment among border community youth, and the opening of new opportunities for tourism.

With its completion, the Lwakhakha OSBP is poised to play a significant role in deepening regional integration and cross-border trade between Kenya and Uganda.

In early February 2022 violent clashes erupted in and around Agok, in the Abyei special administrative area of South Sudan, and an estimated 70,000 people were displaced.

While the majority fled to the town of Abyei, others sought refuge in areas further south, with more than 20,400 people registered in Twic County in Warrap state as of March 2022.

In a region that was already vulnerable and prone to recurrent disease outbreaks, the influx of displaced people placed an additional burden on fragile communities. The situation has further worsened by heavy floods, and the area recently experienced another wave of violence.

“In January 2024 alone, we received more than 100 casualties, mainly gunshot wounded patients in need of surgery, and we have activated our mass casualty response plan multiple times,” said Zélie Antier, a project coordinator with MSF in Abyei, South Sudan. “As a consequence, we’ve upgraded our surgical capacity to be able to respond to the medical needs of the population.”

Today, in Abyei and Twic, MSF is providing comprehensive care in four facilities and supports integrated community case management sites in the camps for displaced people. There remains, however, a critical lack of hospital care available in the area; there is no operating theater in the whole of Twic County, leaving patients in need of surgical care at risk.

Decreased funding and overstretched services

“The main threat in 2024 is the decrease in funding for South Sudan, which has led to a significant decrease in the presence and response of [humanitarian] actors, with major concerns about lack of food and poor water and sanitation conditions—in the camps as well as in most host communities—and poor shelter conditions to [accommodate] the coming rainy season, with limited access to quality health care services,” said Nicolas Guiral, MSF project coordinator in Twic.

This renewed violence has led to deaths, serious injuries, destruction of property and livelihoods, and further displacement. These conditions have stretched our teams and equipment and, during the clashes, MSF lost two team members who, although off-duty and not targeted as staff, became victims of the violence.

“In Twic the recent violence has mainly affected our activities [in] receiving [people who are] wounded or killed,” explained Guiral. “It’s also affecting an important part of our team since most have family members who are from other communities and have been separated until now from the conflict.”

The magnitude of the crisis exceeds the capacity of any single entity, and a collaborative approach is essential for creating a more substantial and effective humanitarian response.

Challenges faced by refugees and returnees from Sudan

Amidst the already dire situation in Abyei, a new challenge has arisen: an influx of returnees and refugees fleeing the horrors of Sudan’s ongoing war that began in April 2023. There has been a significant influx of internally displaced people and refugees into South Sudan since the fighting started. Families who had been displaced from their homes sought refuge in Abyei, hoping for safety and a chance to rebuild their shattered lives.

“Most people fled from Agok, north of here,” said a community leader. “Some have come recently from Sudan, and they are still coming every day. More than 6,000 people are living in the camp. When there is peace and MSF goes back to Agok then we will go too. But if there is peace and MSF doesn’t go back, then we won’t go back either. We need MSF. Some [of the people arriving from Sudan] come by official routes and have vouchers and a pass to get food and shelter, but many come on unofficial routes from different directions and they don’t have the necessary papers,  so they get no help at all. This is a big problem, and it is growing.”

As of November 2023, more than 400,000 people, predominantly South Sudanese returnees, as well as refugees have crossed the border. The large number of arrivals, particularly women and children, presents challenges for transit sites. Rising market prices have contributed to worsening food insecurity. These add to the challenges South Sudan already faces, such as regular disease outbreaks, flooding, displacement, and high rates of malnutrition.

While MSF continues to provide health care and hospital services, there is an urgent need for additional support from other humanitarian actors in terms of food, water, sanitation, and shelter, especially with the impending seasons of floods as well as violent events that could cause the situation to deteriorate further. In the past year alone, our teams supported 50,000 people and conducted 23,000 emergency consultations.