East African Community Affairs PS Nominee pledges to champion regional trade, peace

Tuesday, 8 April, 2025

East African Community Affairs PS Nominee pledges to champion regional trade, peace

East African Community Affairs PS Nominee pledges to champion regional trade, peace 

๐๐š๐ซ๐ฅ๐ข๐š๐ฆ๐ž๐ง๐ญ ๐๐ฎ๐ข๐ฅ๐๐ข๐ง๐ ๐ฌ
๐Œ๐จ๐ง, ๐€๐ฉ๐ซ๐ข๐ฅ ๐Ÿ•๐ญ๐ก, ๐Ÿ๐ŸŽ๐Ÿ๐Ÿ“

Dr. Caroline Wanjiru Karugu, nominee for Principal Secretary in the State Department for East African Community (EAC) Affairs has committed to boosting regional trade and rebuilding diplomatic bridges within the East African Community. 

In an approval hearing before the National Assembly Committee on Defence, Intelligence and Foreign Relations, Committee Members put the nominee to task on her plans to steer Kenyaโ€™s interests within the EAC, amid growing geopolitical tensions and slow trade integration.

Dr. Karugu, previously served as the Deputy Governor of Nyeri County (2018โ€“2022), CEO of Jabali Microserve, and Senior Group Investor Relations Manager at Britam Holdings.

Hon. Martha Wangari pointed out Kenyaโ€™s recent strained ties with South Sudan and the regional support during the African Union Chairperaon elections.

โ€œThe EAC is in a very fragile state,โ€ Hon. Wangari noted. โ€œRecently we had AU elections and it is said that some in the region did not support Kenya's bid, and also the recent diplomatic situation with South Sudan. What will you do to repair this?โ€

Dr. Karugu emphasized that peace and stability are foundational to regional trade and integration. โ€œWe must first ensure peace and security for trade and the economy to thrive. Kenya has always been a leader in peacekeeping and mediation efforts, and I will work to strengthen that legacy,โ€ she stated, citing the contributions of past and current Kenyan leaders in fostering regional harmony.

She also underscored her intent to promote regional trade expos and forge stronger partnerships with the Ministry of Trade to bolster intra-EAC commerce.

Committee Members questioned the nominee on value addition and the need to align EACโ€™s economic goals with the African Continental Free Trade Area (AfCFTA).

Hon. Caleb Amisi asked how Kenya can leverage both regional and continental Trade Agreements. โ€œWe have the East African Community Agreement on Trade and the African Free Trade Agreements. How are you going to interface our sub-regional bloc and the African region as a whole, noting that we have similar offerings on horticulture, tea, and coffee?โ€ he posed.

Dr. Karugu called for value addition and competitiveness, โ€œWe must first enhance East African products, but we must export finished products. Value addition is key. Thereโ€™s a reason why eggs in Uganda are cheaper than in Kenyaโ€”itโ€™s the cost of production. To be competitive, we must work on our cost.โ€

Speaking on capital markets, Hon. Fred Ikana raised concerns over the fragmentation of capital markets across EAC states. 

โ€œWe have a number of companies trading within the East African Community, but the systems are not compatible. What are you going to do to integrate our stock markets?โ€

In response, Dr. Karugu acknowledged disparities in automation and modernization of financial systems.

โ€œWhile Kenya has made great strides in automating its stock market, many EAC counterparts are still operating manually. I will champion policies that promote systems integration to enhance cross-border investment and trade,โ€ she said.

Committee Chair, Hon Nelson Koech queried the nominee on her previous decision to decline a diplomatic post. โ€œYou have previously declined a nomination to a diplomatic post,โ€ he asked.

โ€œAt the time, I declined due to personal and family obligations,โ€ Dr. Karugu said. She further assured the Committee that she is now ready to serve the country at a regional level.

Hon. Koech also raised concerns about past PSs in the State Department of East Africa Community Affairs being inactive in budget advocacy. โ€œWe have noted that previous PSs were not active in pushing for increased budget,โ€ he noted.

Dr. Karugu pledged to work closely with National Treasury and the National Assembly to ensure adequate funding for the department, stating that strategic resources are key to fulfilling Kenyaโ€™s EAC commitments.

The Committee on Defence, Intelligence and Foreign Relations will table a Report on the suitability of the nominee before the National Assembly for consideration.