Kenya, TZ to benefit from Ksh100 billion deal as Suluhu and Uhuru meet

By Collins Osanya
Tuesday, May 4th, 2021
Samia Suluhu during state visit to Kenya
President Samia Suluhu with her Kenyan counterpart Uhuru Kenyatta at State House Nairobi on Tuesday, May 4 during President Suluhu's state visit: Photo/State House Kenya
In summary

President Uhuru Kenyatta and his Tanzanian counterpart Samia Suluhu signed a Ksh100 billion deal after the two heads of state held bilateral talks at Statehouse, Nairobi. 

The deal signed by the two countries during Suluhu’s May 4 state visit will see Tanzania construct a gas pipeline from Dar es Salaam to Mombasa.

In the deal, the two countries also had an MOU on animal health and sanitary measures, culture, the arts, social integration and national heritage. 

Once constructed, the 600-kilometer pipeline will get to Mombasa via the port city of Tanga ferrying natural gas from Songo Songo Island and Mnazi Bay gas fields in Southern Tanzania.

During the joint address at Statehouse, Nairobi, Suluhu revealed that Kenya is a major investor in the East African Community after curving the fifth position for itself in Africa’s economy. 

In her statement, Suluhu sighted 513 projects between Kenya and TZ which she revealed created more than 50,000 jobs for the Tanzanian population. 

After completion of the 600-kilometer pipeline, Kenya is set to benefit from the reduced cost of Liquid Petroleum Gas.

Beginning July 1, households are expected to part with at least Sh350 for cooking gas after introduction of a 16 per cent Value Added Tax on the commodity. 

The tax levied on LPG was reinstated following a delay in execution of the levy increase due to the concerns about the high cost of living.