Two of East African Community (EAC) largest markets are targeting to smoothen diplomatic relations in support of bilateral trade which has been held back by non-tariff barriers.
According to President William Ruto who is on a two-day state the two countries are seeking additional Ksh 195 billion worth of trade and investments.
“Kenya and Tanzania have set a target of Ksh 130 billion in new trade and Ksh 65 billion in fresh cross-border investments. To achieve this ambition, we must deliberately bring down hurdles that hinder free movement of people, goods and services,” said President Ruto.
The new commitments by the President Ruto and his Tanzanian counterpart President William Ruto will see bilateral trade grow from the current Ksh 113 billion to Ksh 309 billion.
President Ruto said the new trade and investment will be accelerate by the removal of non-tariff barriers which have been seen by business leaders in the region as a hindrance to enhance trade volumes.
“Business and trade will grow exponentially if non-tariff barriers are eliminated, including border delays, non-harmonised standards, and restricted market access. This is the reason we have set ourselves a June 30, 2026 target to ensure all these barriers are removed,” he added via his official X account.
Latest data by the Kenya National Bureau of Statistics (KNBS) indicate that Kenyan exports to Tanzania fell to Ksh 63.6 billion last year, compared to Ksh 67.2 billion reported in 2024.
On the other hand, imports from the neighbouring country declined by 14pc to Ksh 50.5 billion from Ksh 58.7 billion over the same period.
Ruto also stressed on the need for the Joint Business Council to become the central platform for structured collaboration.
Speaking during the Tanzania-Kenya Business Forum in Dar es Salaam on Monday, President Ruto added that the Tanzania-Kenya Business Forum will be institutionalised as an annual event to review progress, track implementation, and unlock new opportunities.
“We reaffirmed our steadfast resolve to provide a stable, predictable, and enabling environment, anchored on regulatory clarity, investor protection, and private sector-led growth,” he noted.
The two day state visit by the president will conclude on Tuesday after a historic address to the Tanzanian parliament.
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