ECONOMY

Kenya, Tanzania trade wars far from over

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President Uhuru Kenyatta (right) and his Tanzania counterpart John Magufuli (left) during a past meeting. The two countries are locked in a diplomatic war.
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Six months after Kenya and Tanzania agreed to end their trade animosity and allow free movement of goods between the two countries, the two East African economies are locked in a serious tiff described as ‘chronic’ by Trade Principal Secretary Chris Kiptoo over specific goods including  tobacco and confectionery

On November 30, 2018, Industrialisation Cabinet Secretary Peter Munya described trade relations between the two countries as ‘unacceptable’ over Tanzania’s decision to block Kenyan goods from accessing its market despite meeting all the necessary requirements.

Conversely, on January 28 this year, Kenyan traders expressed their disgruntlement on social media over constant harassment by Tanzanian authorities who urged the Kenyan government to retaliate claiming that Kenya has allowed her neighbour to renege on an agreement struck by President Uhuru Kenyatta and his Tanzanian counterpart John Magufuli that committed to end the animosity.

Speaking to a local TV station on Monday, PS Kiptoo said that there is ‘hope’ as the two countries are locked in negotiations to solve the impasse.

“We have been able to resolve 45 issues. 17 remain to be resolved but are on course and 2 were singled out as chronic between Kenya and Tanzania which include tobacco and confectionary,” said PS Kiptoo.

The Principal Secretary explicitly underscored that Kenya will only retaliate when it has exhausted all other available options and when the move will be deemed necessary.

Read: East African economy best performing in the continent

“Retaliation is always an option we can always fall back to if every other option fails. Every country reverts to that option at an appropriate time. We will work under the directives of the summit (East African presidents) on the way to resolve and we think that we are making progress,” said PS Kiptoo.

See also: Rivalry between East African countries hurting regional economy

In February 2018, Uhuru and Magufuli directed their ministers to convene an urgent meeting to end the uneasy trade ties. There has been progress as Kiptoo explains but it has been hampered by emerging tensions over movement of select goods.

 

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