This archive report was first published on 13 August 2019.
Kenya's trade with Tanzania has been on a downward trend in recent years, with exports dipping to a 10-year low of Sh28.5 billion in 2017. However, with the recent visit of President Uhuru Kenyatta to Tanzania, Kenya is now seeking to boost its exports to the neighboring country.
According to Kenya's High Commissioner to Tanzania, Dan Kazungu, the visit of President Kenyatta to Tanzania in July was a key factor in unlocking trade barriers between the two countries. 'What we needed was a reset button,' Mr Kazungu said. 'That button was pressed when President Uhuru visited President Magufuli.'
During the visit, President Kenyatta was offered the rare gift of two peacocks as a sign of the renewing of ties between the two neighboring countries. The visit was seen as a key step in improving relations between the two countries, which had been wracked by diplomatic and economic tensions.
Before President Kenyatta's visit, talks between the two countries had led to the elimination of 25 of the 37 tariff barriers by April. Kenya accounted for 15 of these tariff barriers while Tanzania's share stood at 22. Negotiations to resolve the remaining 12 are ongoing.
Official data show that Kenya exports to Tanzania dropped to the 10-year low of Sh28.5 billion in 2017, but reversed to Sh29.7 billion last year. Kenya sold goods worth Sh42.7 billion to Tanzania in 2014.
Imports from Tanzania to Kenya rose from Sh12.8 billion in 2016 to Sh17.8 billion last year, narrowing the trade gap between the two nations.
Tanzania will be hosting the Southern Africa Development Community (SADC) Heads of State summit on Saturday and Sunday, during which President Magufuli is set to take over as chairman of the community for the next one year. This could boost Kenya's trade prospects with the SADC bloc, now that relations with Dar-es-Salaam have improved.
Kenya and Tanzania belong to the East Africa common market, which allows for free movement of goods, people, labor, services, and capital within six member countries.
