Trade relations between Kenya and Tanzania have improved in recent times with the two countries engaging regularly to address the non-tariff barriers. As a result, Kenya’s exports to Tanzania between January and May 2018 increased by about 29%, or Ksh2.34 billion.
This has had an impact on the overall exports increase over the same period from about Kshs 49 billion to Kshs 52.7 billion according to the Government of Kenya data.
While Kenya targets to achieve a higher middle income economic status through industrial transformation of over $4,036 pa capita according to the World Bank Economic Atlas, Tanzania seeks to spur industrialization and higher incomes for its citizen. Which is why, the two leading economies, being members of the EAC Common market, will open more market opportunities East Africans.
In April 2018, the Made-in-Tanzania Week was held in Kenya to support the quest for Tanzania to access the Kenya and East African market.
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In early July 2018 the Export Promotion Council hosted a diaspora forum and a Made-in-Kenya trade and investment promotion event in Dar es Salaam at the side-lines of Dar es Salaam International Trade Fair. The council also led the Made-in-Kenya Exhibition at the International Fair where 6 large exporters including Bidco Africa, Trufoods, KETEPA, New KCC, Spinners & Spinners Ltd participated as well as 15 small medium enterprises from Nandi, Tana River, Kwale, and Kilifi Counties that were introduced to export business.
During the International Trade Fair, New KCC realized an order worth Ksh6.5 million, Trufoods obtained an order to supply Ksh5.3 million of exports, KETEPA 11 tonnes worth of teas and BIDCO 40 tonnes worth of their products.
The Chief Executive Officer Export Promotion Council, Mr Peter Biwott, says this is a true testimony of the trade possibilities that exist within Africa. “The trade relations between the two countries are cordial and the business community of the two countries have a strong interest in enhancing trade to foster economic development. Most exporters from the two countries are eager to trade together, and grow business to higher levels,” says Mr Peter Biwott.
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The two countries held bilateral talks led by the Principal Secretary for Industry Trade and Cooperatives, Dr. Chris Kiptoo, and his counterparts from Tanzania Prof. Elisante Ole Gabriel where they agreed to eliminate all barriers to trade. This follows a directive by President Uhuru Kenyatta and his Tanzanian counterpart Dr John Pombe Magufuli to ensure all trade barriers are addressed to enhance trade between the two countries with a view to spur economic growth and developments.
“For Kenya to achieve an increase of the manufacturing sector’s contribution to the gross domestic product from 8.4% to 15%, Africa remains the single most lucrative market for her exports, Tanzania being an important destination within the EAC region and the continent,” says Mr Biwott.
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