In Summary
Exports to
Tanzania plunged by Ksh4.35 billion (about Tsh87 billion) to Ksh8.2 billion
(about Tsh164 billion) in the period to May compared to Sh12.55 billion (about
Tsh 251 billion) recorded in similar period last year, shows data released on
Friday by the Kenya National Bureau of Statistics (KNBS).
Nairobi. Tanzania’s imports from Kenya have dropped by 34
per cent in the first five months of the year due to the long-running trade
standoff between the two countries.
Exports to Tanzania plunged by Ksh4.35 billion (about Tsh87
billion) to Ksh8.2 billion (about Tsh164 billion) in the period to May compared
to Sh12.55 billion (about Tsh 251 billion) recorded in similar period last
year, shows data released on Friday by the Kenya National Bureau of Statistics
(KNBS).
Tanzania has been Kenya’s second largest market in the region after
Uganda, providing outlet for a range of products that include palm oil, soap,
medical drugs, cooking fats, iron sheets, sugar confectionery, and margarine.
According to the KNBS data, exports to Uganda have continued
to grow, firming up the country’s position as the single largest destination
for Kenya’s manufactured goods.
Tanzania, on the other hand, has had a long-running market
access war with Kenya, a stalemate that climaxed in May when the Energy
Regulatory Commission banned gas imports through Namanga border post citing
quality concerns.
Dealers from the neighbouring state say the ban has affected
40 per cent of the 100,000 metric tonnes of LPG imported into Tanzania in the
period. “Tanzania has been selling LPG to Kenyan companies for more than 10
years.
This business is well-established. We have invested and continue to
invest in infrastructure with a view of supplying the East African common
market,” the traders said in a statement.
Tanzania responded promptly by blocking long life milk and
cigarette exports from Kenya.
The stalemate has remained in place weeks after President
Uhuru Kenyatta and his Tanzanian counterpart John Magufuli directed border
agencies to end it.
Last week, trade officials from the two states, led by
Kenya’s trade PS Chris Kitoo and his Tanzanian counterpart Adolf Mkenda held
talks in Namanga in an effort to address the dispute that has rocked trade
between the two states.
“This standoff has curtailed trade leading to a drop in
business transactions between the two states since 2015,” said Dr Kiptoo on
Friday as he announced that a follow up meeting.
The Citizen
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