Economy

Kenya and Tanzania steer clear of pipeline, EPAs in talks

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President Uhuru Kenyatta (right) with Tanzania's John Pombe Magufuli at State House Nairobi on October 31, 2016. PHOTO | PSCU

Presidents Uhuru Kenyatta and Tanzania's John Pombe Magufuli have directed their foreign ministers to form a joint commission to chart the way forward on future bilateral relations, even as the leaders avoided speaking on hot button issues that have recently strained ties between the neighbours.

The joint ministerial team, spearheaded by Kenya's Foreign Cabinet Secretary Amina Mohamed and her Tanzanian counterpart Augustine Mahiga, is expected to meet in Tanzania before year end.

Mr Magufuli and his host Mr Kenyatta, however, did not share details of the upcoming talks.

They also steered clear of addressing the oil pipeline issue, the Economic Partnership Agreement (EPAs) and work permits for Kenyans operating in Tanzania.

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Business opportunities

Dr Magufuli however welcomed Kenyans to invest in his country, citing numerous business opportunities.

The Tanzanian leader acknowledged the crucial role Kenyan investors play in the Dar economy, noting that 529 Kenyan firms operate in the country, employing 56,260 people and their collective investments valued at $1.7 billion.

This makes Kenya the largest African investor in Tanzania, he said.

"My visit today is to cement the good relations between Tanzania and Kenya" said Dr Magufuli.

The two countries also agreed to co-operate on security issues and expedite link roads such as the Bagamoyo-Malindi highway, which is one of the roads spearheaded by the East African Community (EAC) to boost cross-border trade.

The Tanzanian leader arrived Monday morning for a two-day State visit, making it his maiden visit to Kenya since he became president.