Kenya-Tanzania trade hit $905.5 million on easing trade barriers
Trade between Kenya and Tanzania for the year ending November 2021 hit $905.5 million (Sh103 billion) last year according to Central Bank of Kenya (CBK) data.
Imports from Tanzania also stood at $501 million while exports hit $403.9 in what has been attributed to resolutions on non-tariff barriers by presidents of Tanzania and Kenya.
The two countries have recently mended fences to eliminate barriers hindering the smooth flow of trade and people between along the busy corridor and particularly on the Namanga border.
EAC market
The most recent spat was in August 2021 when Tanzania government banned Kenyan airlines from its airspace after Nairobi announced passengers from the EAC market would not be allowed to enter Kenya.
“Kenya and Tanzania have strong trade ties and the ministry is setting up a Jumuiya Market near the border of Namanga to support cross-border trade. Cross-border trades shall have a stall at the Jumuia Market,” said Irene Musebe from the Ministry of East African Community during an EABC trade facilitation forum at Namanga One-Stop Border Post.
Data from the border post shows that trade has improved to 250 trucks compared to 70 trucks in May last year.
The two countries signed eight bilateral pacts which included agreements on mutual legal assistance, as memoranda of understanding (MOUs) on immigration, correctional services and animal health.
Kenya National Bureau of Statistics (KNBS) data says imports from Tanzania grew from Sh10.8 billion ($96.2 million) to Sh20.5 billion ($182.6 million) as of November last year, with Tanzania’s biggest exports to Kenya being cereals, wood and edible vegetables.
Kenya’s exports include soap, coated flat-rolled iron, and packaged medicaments.
- Steve Umidha
East African Grain Council (EAGC) Chief executive Gerald Masila said the council spearheaded the development of EAC harmonized standards on grains and cereals and Standards on sampling and testing to boost cross-border trade of cereals in the region.
The traders called for more staff to be deployed at the Agriculture Food Authority (AFA) of Kenya to facilitate approval of pre-applications of maize import from Tanzania to Kenya and joint testing of aflatoxin to be undertaken preferably in Arusha to reduce the number of rejections at the border.
Clearing cost of cargo on the Kenyan side have increased by 70 per cent due to multiple processes and departments, according to Daniel Wainaina, the Chairman of Kenya International Freight and Warehousing Association (KIFWA) who noted that for a 20 metric tonne truck, the clearing cost is approximately $200 resulting in un-competitiveness..
– Writer’s Name
