- For the first time, Tanzanian exports to Kenya have exceeded its imports from Kenya.
- According to the data released by the Central Bank of Kenya (CBK) Kenya’s imports from Tanzania rose by almost three-quarters in the six months to June 2021.
- The 70.06 percent surge in Kenya’s imports from Tanzania which grew at a five-year high, outpaced its exports, resulting in a trade deficit of Sh1.02 billion.
For the first time, Tanzanian exports to Kenya have exceeded its imports from Kenya. According to the data released by the Central Bank of Kenya (CBK) Kenya’s imports from Tanzania rose nearly by three-quarters in the six months to June 2021. The 70.06 percent surge in Kenya’s imports from Tanzania which grew at a five-year high, outpaced its exports, resulting in a trade deficit of Sh1.02 billion. The improvement in bilateral trade reflects improved economic ties between the two countries under President Samia Suluhu’s administration.
Tanzania predominant exports to Kenya included cereals, wood, and edible vegetables according to data from the Kenya Revenue Authority (KRA) published by the CBK.
For years, the two countries had strained trade relations. In early May, President Uhuru Kenyatta and Tanzanian President, Ms Suluhu, had pledged to end the tensions for mutual benefit and facilitate better flow of trade and services. During the Tanzanian president’s visit to Nairobi the two countries signed a deal to build a gas pipeline from Dar es Salaam to Mombasa and also held a series of joint trade meetings aimed at removing trade barriers.
The Presidential meetings were followed by Trade minister Betty Maina and her Tanzanian counterpart, Kitila Mkumbo’s meetings in Arusha — the headquarters of the EAC. A three-day investment forum of manufacturers from both countries in Dar es Salaam was held from July 7 where the Kenya Association of Manufacturers (KAM) and the Confederation of Tanzania Industries resolved to jointly lobby authorities to end crippling non-tariff barriers. Industry members from both sides have been complaining about discriminative duties and non-tariff barriers.
