Kenya-Tanzania trade volume hits $905.5million

By Steve Umidha

Trade between Kenya and Tanzania hit USD 905.5 million last year for the period January –November 2021 according to figures by the Central Bank of Kenya (CBK).

Kenya imports from Tanzania stood at USD 501million and exports USD 403.9 in what has been attributed to resolutions on Non-Tariff Barriers by regional leaders Samia Suluhu Hassan and Uhuru Kenyatta – the presidents of Tanzania and Kenya respectively.

The two countries had in December last year signed eight bilateral pacts on the last day of President Kenyatta’s two-day state visit in Tanzania – with the bilateral pacts including agreements on mutual legal assistance, extradition and transfer of sentenced persons as well as memoranda of understanding (MOUs) on immigration, correctional services and animal health.

Others included MOUs on cooperation between Kenya Investment Authority and Tanzania Investment Centre as well as housing and urban development.

“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 and Regional Development of Kenya during the EABC Trade Facilitation Forum at Namanga One-Stop Border Post.

Figures announced yesterday further show that trade in the Namanga border now clears 250 trucks daily, a 3-fold increase in comparison to May last year, according to estimates by EABC Trade Facilitation Forum at Namanga One-Stop Border Post.

Equally clearing cost of cargo on the Kenyan side has 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 USD 200 resulting in un-competitiveness.

Available data from Kenya National Bureau of Statistics (KNBS) show that 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 to Tanzania include soap, coated flat-rolled iron, and packaged medicaments.

Gerald Masila, the Chief executive of East African Grain Council (EAGC) said the EAGC 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.

The two countries have in recent months mended fences to eliminate barriers hindering the smooth flow of trade and people between along the busy corridor and particularly on the Namanga border – with the most recent spat being 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.