The governments of Kenya and Tanzania have downplayed reports that there is bad blood between the two on trade.

There are reports that Tanzanians have been tough on Kenyan traders with the most recent incident being that of Tanzania authorities burning live chicken imported into their country from Kenya.

There is also an incident where over 10,000 head of cattle belonging to Kenyans were auctioned by President John Magufuli’s administration.

PS for International Trade Chris Kiptoo and Tanzania trade Permanent Secretary Prof Elisante Ole Gabriel jointly agreed there are no trade barriers between the two nations.

Kiptoo however said there has been a decline in business between Kenya and Tanzania since 2012. Kenya was making over Sh46 billion in trade with Tanzania, while the Tanzania was making over Sh20 billion trading 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 a decline since 2012,” said Kiptoo.

“This is why we are here today to discuss some of the trade barriers.” Tanzania is Kenya’s number two in trade after Uganda, but non-tariff trade barriers have been affecting business.

“It is the responsibility of the political leadership in the respective countries to make a favourable environment for trade and investments. That is why we are here to engage,” said Gabriel.

He said they have agreed that there be no sudden changes to trade laws and regulations that will have a negative impact on investors. The issue of Uchumi and Nakumatt supermarkets arose during the meeting. The two confirmed they have engaged 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 about TSh50 billion (Sh2.27 billion).

Kiptoo said the Kenyan government owns 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 all suppliers 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.

Gabriel said they have given the Uchumi and Nakumatt managements sometime to sit down and see how best they can revive the supermarkets.

Source: The Star

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