Kenya and Tanzania, in a landmark agreement, have eliminated barriers that have impeded trade in key commodities including tea, spirits and timber.
The two countries struck a deal in Kisumu where Kenya’s Trade Cabinet Secretary Rebecca Miano hosted her Tanzania counterpart Ashatu Kijaji to resolve longstanding trade barriers.
The removal of these barriers is expected to enhance trade flows between Kenya and Tanzania.
The deal is also expected to foster economic growth and strengthen ties.
Miano highlighted that the discussions will conclude with the signing of a communique.
Additionally, Miano 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 could be 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 said.
President William Ruto has pledged to double bilateral trade between Kenya and Tanzania.
The visit of Tanzanian President Samia Suluhu Hassan to Nairobi in May 2021 marked a significant turning point in Kenya-Tanzania trade relations.
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 Central Bank of Kenya 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.
Data by the KNBS shows that the value of Kenya’s exports to Tanzania jumped 43.39 percent to Sh45.6 billion in 2021 compared to the previous year.
Tanzania’s exports to Kenya on the other hand grew 95.3 percent last year nearly doubling to Sh54.47 billion.