MOMBASA, KENYA: The governments of Kenya and Tanzania have downplayed reports that there is bad blood between two countries in matters of trade.
Recently, there are reports that Tanzanians have been tough on Kenyan traders with the most recent incident being that of Tanzania authorities burning a live over 6000 chicks imported into their country from Kenya.
There is also an incident where over 10,000 heads of cattle belonging to Kenyans were auctioned by President John Magufuli’s administration.
On Tuesday, Kenya and Tanzania delegations held a five-hour closed door meeting at the Sarova Whitesands Hotel in Mombasa to discuss some of the pertinent issues affecting trade.
After the meeting, Kenya’s Principal Secretary for International Trade Dr Chris Kiptoo and Tanzania Trade Permanent Secretary Prof Elisante Ole Gabriel jointly told journalist that there are no trade barriers between the two East African countries.
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Kiptoo however said there has been a decline in business between Kenya and Tanzania since 2012, which is immediately after the Jubilee government came into power.
In 2012, Kiptoo said Kenya was making over Sh46 billion in trade with Tanzania, while the Tanzanian were making over Sh20 billion in trade with Kenya.
“Last year, Kenya made Sh34 billion and Tanzania made Sh13 billion in trade between the two countries. The business was in favour of Kenya, but as you can see it has been on decline since 2012,” said Kiptoo.
“This is why we are here today to discuss some of the trade barriers.”
Ole Gabriel noted that Kenya and Tanzania have been engaging on quite sometime to see how best they will revive the business which they have been doing over the years.
Tanzania is Kenya’s number two in trade after Uganda in the East African countries, but some of the non-tariff trade barriers introduced by the governments have been affecting business.
“It is the responsibility of political leadership in the respective countries to make a favorable environment for trade and investments. That is why we are here to engage,” said Ole Gabriel.
He said they have agreed that there should be no sudden changes of trade laws and regulation in Kenya and Tanzania that will have negative impact on the investors.
The issue of Uchumi and Nakumatt supermarkets also arose during the meeting.
Kiptoo and Ole Gabriel confirmed that they have engaged with the leadership of the two supermarkets to see how they will be revived.
Reports emerged that since Uchumi had also closed down its stores in Tanzania, Kenya government should pay all the Tanzanian suppliers an amount exceeding TSh50 billion.
Kiptoo said the Kenyan government has some shares in Uchumi (14 per cent), but has no control over the supermarket.
“Uchumi is listed at the Nairobi Stock Exchange and regulated by Capital Markets Authority,” said Kiptoo.
He said they have agreed that they will come up with National Trade Policy which will see that all suppliers are paid within the shortest time possible.
“There should be a code of practice between the retailer and supplier. Any person supplying perishable goods should be paid within 14 days and not wait until 30 days to get paid,” said Kiptoo.
Ole Gabriel said they have given the Uchumi and Nakumatt managements sometime to sit down and see how best they can revive the supermarkets.
