Trade between the two countries continues to fall. In the first five months of the year, exports from Nairobi to Tanzania dropped by 34 per cent, while exports to Tanzania dropped to $77.6 million from $118.8 million in the same period last year, according to Kenya National Bureau of Statistics.
Tanzania is Kenya’s largest regional trading partner. A trade dispute in April led to a ban on margarines, tile products, milk, wheat and gas. Two weeks ago the two countries appeared to have lifted the ban, but this was not so.
“When we were told that the two governments had set aside the trade ban, our dairy products members tried to get to the Kenyan market but were told that access was still limited,” the Tanzania Private Sector Federation (TPSF) said in Dar es salaam last week at a meeting between them and the Kenya Private Sector Alliance (Kepsa).
Last Sunday, speaking at the Tanga Fresh Milk Company Ltd, President Magufuli said, “Tanzania will not allow importation of processed milk from any country as this will cripple our local milk processors’ efforts to produce and export.
“I closed the Arusha-based milk processing factory because it was just a raw milk collecting centre. How can I allow a foreign investor to purchase raw milk and process it in his country and then resell it to us at inflated prices?”
Last week, trade officials from the two countries led by Kenya’s Trade permanent secretary Chris Kiptoo and his Tanzanian counterpart Adolf Mkenda held talks at the Namanga Customs border point on the trade dispute. They are expected to have a follow up bilateral meeting after Kenya’s elections.
“This standoff has led to a drop in business transactions between the two states since 2015,” said Dr Kiptoo.
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