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Economy

Kenya, Dar in long-drawn-out dispute over cooking gas trade ban

A KENYAN FERRIES AN ASSORTMENT OF COOKING GAS CYLINDERS, FEBRUARY 21, 2016. FILE PHOTO | NMG
A KENYAN FERRIES AN ASSORTMENT OF COOKING GAS CYLINDERS, FEBRUARY 21, 2016. FILE PHOTO | NMG 

Kenya and Tanzania are headed for a long-drawn-out dispute over cooking gas trade after officials failed to strike a deal to end an existing import ban.

Energy secretary Charles Keter said the ban on Tanzania gas imports remains until the two countries reach an agreement.

“The ban is in place, but there are discussions going on to reach an amicable solution,” Mr Keter told the Business Daily.

For the last two months, Kenya has blocked more than 4,000 metric tonnes of Liquefied Petroleum Gas from entering its market over quality concerns.

Kenya receives at least 2,000 metric tonnes of gas through the Namanga border point alone.

Last week, Tanzania accused Nairobi of violating the East Africa Community protocol and hinted that the two States had agreed to lift the ban during an EAC sectorial meeting in early June.

Kenya earlier linked the ban to quality verification challenges.

Mombasa was then designated as the only entry route for LPG, closing the door on Tanzania road imports.

Kenya has banned importation of wheat from Tanzania deepening the trade standoff.

Lake Oil Group from Tanzania was the main importer of LPG into the country.

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