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East Africa experiences some trade tensions as trade between Tanzania and Kenya dip
By Jerry
- Kenya experiences the fastest decline in imports from Tanzania in seven years, as trade disputes drive Nairobi to seek goods from distant sources.
- Tanzania’s cereal export restrictions led to a one-third decrease in goods trucked to Kenya over six months, causing a 31.12% drop in imports.
- Tanzania’s declining imports see it slip from Kenya’s second to fourth-largest source market in Africa, overtaken by Egypt and Uganda due to new regulations and disputes.
Kenya’s imports from Tanzania have decreased at the fastest rate in seven years, during which time fresh trade disputes caused Nairobi to avoid Dar es Salaam and purchase more goods from as far away as Egypt. In response to limits on cereal exports to Kenya, according to a report by the Tanzanian news outlet The Citizen, expenditure on products trucked from Tanzania in the six months leading up to June fell by approximately a third.
During the review period, Tanzania implemented new limits on grain trade with its neighbors in the East African Community bloc, laws that significantly curtailed the entry of maize into Kenya.
According to information gathered by the Central Bank of Kenya (CBK), the value of Kenya’s goods imports from Tanzania fell 31.12% on-year to Sh18.68 billion between January and June. The decrease was the quickest since 2016 from Sh27.12 billion, a record-high for the half-year period, in a comparable period the previous year.
