Kenya-TZ trade doubles after talks

Provisional Central Bank of Kenya (CBK) data shared by the East Africa Business Council (EABC) shows a 96 per cent jump in the value of trade to Ksh.60 billion between June and November 2021 from Ksh.30.6 billion a year earlier.

Tanzania has however bossed the balance of trade as its imports into Kenya more than doubled having grown by 130.8 per cent to Ksh.33.7 billion from Ksh.14.6 billion a year earlier.

On the flipside, Kenyan exports into Tanzania have grown by 64 per cent to Ksh.26.3 billion from Ksh.16 billion in November 2020.

The rise in trade between the two neighbours follows talks held in early May which resolved to tackle enterprise obstacles between the pair which at the time largely featured non-tariff barriers.

The barriers mostly covered blockades on goods from accessing either side of the border with activity at the border crossing slowing to a near halt occasionally.

According to the Station Manager at the Namanga One Stop Border Point (OSBP), the border is now clearing an estimated 250 trucks daily, representing a three-fold increase in comparison to May 2021.

Traders operating across the two borders have however lamented the high cost of clearing cargo on the Kenyan side which they say, have jumped by up to 70 per cent due to multiple processes and clearing departments.

It for instance costs an estimated Ksh.22,720 ($200) to clear a metric ton truck.

The traders have further called for the set-up of a permanent cargo scanner at the border to further facilitate trade.