This archive report was first published on 13 July 2021.
On July 13, 2021, a trade mission led by the Kenya Association of Manufacturers (KAM) concluded in Tanzania, marking a significant step towards strengthening trade relations between the two East African countries.
The mission, which was organized in partnership with the Confederation of Tanzania Industries, aimed to explore opportunities for mutual trade and investment between Kenya and Tanzania.
According to statistics, Kenya's exports to Tanzania declined from $343.6 million in 2015 to $329.5 million in 2019, while imports from Tanzania increased from $172.6 million in 2015 to $269.7 million in 2019.
However, Tanzania's exports to Kenya grew from $126.2 million in 2016 to $258.2 million in 2020, while her exports to the world grew from $4.4 billion in 2016 to $5.2 billion in 2020.
The business community highlighted three main areas to deepen trade between the two countries: driving mutual trade and investments, enhancing market linkages, and addressing non-tariff barriers.
Addressing non-tariff barriers, such as discriminatory treatment of products, is crucial to making trade between the two countries easier and more efficient.
Additionally, finalizing the review of the East African Community (EAC) Common External Tariff (CET) is essential to discourage imports of finished goods and encourage manufacturing.
The Kenya Association of Manufacturers has called for Kenya to adopt a 35% tariff band to support the industrialization agenda and correct the anomaly in the current CET.
With the Africa Continental Free Trade Area (AfCFTA) in place, the two countries are poised to become a trade, investment, and industrialization hub, enhancing productivity and prosperity in the region.
