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Tanzania’s exports to Kenya double to Sh20 billion in six months

tanzania

Kenya President Uhuru Kenyatta [R] and his Tanzania counterpart President Samia Suluhu Hassan during Kenya-Tanzania Business Forum that was held at Serena Hotel on May 5, 2021. PHOTO | JEFF ANGOTE | NMG

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Summary

  • Data from the Kenya National Bureau of Statistics (KNBS) shows imports from Tanzania grew from Sh10.8 billion in the corresponding period last year.
  • The value of goods exported to Tanzania grew to Sh17.8 billion from Sh14 billion but the balance of trade remained in favour of Tanzania.
  • With the coming into power of President Suluhu Hassan, the two countries have improved their trade relations with most of the non-tariff barriers being abolished.

Kenya’s imports from Tanzania doubled to Sh20.5 billion in the first half of the year, on good trade relations between the two neighbouring countries.

Data from the Kenya National Bureau of Statistics (KNBS) shows imports from Tanzania grew from Sh10.8 billion in the corresponding period last year.

The value of goods exported to Tanzania also grew to Sh17.8 billion from Sh14 billion but the balance of trade remained in favour of Tanzania.

Kenya and Tanzania have in recent months mended fences over their differences on trade issues that had previously had a negative impact on the flow of goods.

With the coming into power of President Suluhu Hassan, the two countries have improved their trade relations with most of the non-tariff barriers being abolished.

President Uhuru Kenyatta and his Tanzanian counterpart, Ms Suluhu, in early May pledged to end persistent strained trade relations between the two largest economies in the six-nation EAC bloc which have, for years, hindered the smooth flow of goods and services.

The decision came out of a meeting of the Joint Commission on Cooperation (JCC), a bilateral organ comprising officials from the two countries created to resolve issues affecting areas of cooperation.

In June, a month after the State visit by Tanzanian President Samia Suluhu to Kenya, JCC identified 60 tariff and non-tariff barriers between the two countries that had to be resolved.

Among those resolved is customs clearance of soft drinks made in their territories, removal of inspection fees on processed products with a standardisation mark.

Kenya agreed to grant cement coming from Tanzania preferential treatment in accessing its market with Tanzania allowing Kenyan juices and wheat flour to be exported without hindrances at the border.

The two countries have so far handled 64 issues that we impeding on trade, out of which 30 were resolved and decisions made on how to settle the remaining 34.

The Tanzanian president’s visit to Nairobi — which, among others, saw the two countries sign a deal to build a gas pipeline from Dar es Salaam to Mombasa — touched off a series of joint trade meetings aimed at flattening barriers to the flow of goods.

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