Kenya, Tanzania strike deal to enhance trade flows
In a significant landmark agreement, Kenya and Tanzania have agreed to eliminate barriers that have impeding trade of key commodities including tea, spirits and timber.
The two neighbors struck a deal in Kisumu where Kenya’s Trade Cabinet Secretary Rebecca Miano hosted her Tanzania counterpart Ashatu Kijaji to resolve the longstanding barriers.
With the removal of these barriers, there is an expected trade flow between Kenya and Tanzania.
The deal is also expected to foster economic growth and strengthen ties.
CS Miano highlighted that the discussions will conclude with the signing of a communique.
Additionally, she indicated that the two countries will explore untapped market opportunities.Although the current bilateral trade between the two East African powerhouses stands at Sh90 billion, the figures would have been significantly higher were it not for the non-tariff barriers including restrictive regulations, licensing requirements, quotas, embargoes, foreign exchange restrictions, and import deposits.
“We are extremely grateful that for the next few days we will be hosting our Tanzania counterparts in the trade sector. The meeting will seek to strengthen our ties and friendship as neighbours.” Miano stated.
President William Ruto has pledged to double bilateral trade between Kenya and Tanzania.
The two nations successfully negotiated the removal of 23 trade barriers, paving the way for enhanced economic cooperation.
The breakthrough contributed to a substantial increase in bilateral trade.
Kenya remains a significant investor in Tanzania, contributing to the region’s economic growth.
Of the eight nations that make up the EAC, Kenya is the largest investor in Tanzania.
Statistics by the CBK show that the country’s exports to Tanzania jumped the highest by 46 per cent to Sh28.66 billion last year extending a good trade run between the pair amid ongoing elimination of non-tariff barriers.
Tanzania’s exports to Kenya on the other hand grew 95.3 percent last year nearly doubling to Sh54.47 billion.
About The Author
