Dar es Salaam — Kenya and Tanzania have renewed their pledge to cultivate closer ties and accelerate economic growth by signing eight new agreements during a high-level business forum.
The two nations have set a strict deadline of June 30, 2026, to eliminate all remaining non-tariff barriers that have long frustrated cross-border commerce.
The commitments were made during the Tanzania-Kenya Business Forum 2026, held on May 4 at the Julius Nyerere International Conference Centre (JNICC) in Dar es Salaam.
The forum coincided with a two-day state visit by Kenyan President William Ruto, who held talks with President Samia Suluhu Hassan.
The leaders witnessed the signing of eight Memoranda of Understanding covering energy, legal cooperation, agriculture, railway development, public service capacity building, maritime cooperation, seafarer certification, and standards harmonisation.
Bureaucratic hurdles
Addressing the forum, President Ruto emphasised the urgent need to address bureaucratic hurdles that hinder trade.
“We lost a bit of trade, close to US$100 million between 2024 and 2025, because of non-tariff barriers,” President Ruto said.
He noted that the two countries should have already crossed the US$1 billion trade mark, but progress has been hindered by bureaucrats erecting roadblocks.
“It is said you cannot share poverty, but you can share wealth,” he added. “We must allow our business people to create wealth because we have an opportunity to share what we have.”
Bilateral trade between the two countries reached US$860.3 million in 2025, accounting for nearly 40 per cent of all intra-East African Community commerce.
Despite this strong performance, both leaders acknowledged that the potential for growth remains vast.
President Samia highlighted the importance of private sector leadership in driving economic transformation.
She stated that the private sector is expected to lead 70 per cent of the implementation of the national development vision, with the government facilitating the remaining portion.
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President Samia also announced plans to digitise customs and establish a 30-day dispute resolution window under the newly formed joint business council.
Deeper integration
The forum brought together prominent business leaders who echoed the call for deeper integration.
Rostam Aziz, a prominent Tanzanian businessman, urged the two nations to move beyond traditional trade and build a unified commercial system.
“If we work in silos, we will underperform,” Aziz said. “If we work together as a single commercial system, we will unlock the full potential of our markets, our people, and our economies.”
He pointed out that the combined population of the two countries presents a massive market opportunity that can attract significant global capital.
Paul Russo, CEO of KCB Group, highlighted the financial sector’s role in facilitating cross-border investments.
He revealed that KCB has lent US$520 million to businesses operating in both countries over the past two and a half years.
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“If we want to create scale, focusing on one country or one market will not work,” Russo stated. “We must be bold enough to open up.”
Agreements signed
The agreements signed include significant infrastructure projects aimed at enhancing regional connectivity.
These include the revival of the Voi-Mwatate-Taveta railway line and the advancement of the Isinya-Singida power transmission line.
President Ruto also announced the signing of a feasibility study for a gas pipeline connecting Tanzanian gas fields to Mombasa.
“We have now sanctioned our two ministers to proceed with the necessary details for us to get that into action,” he said.
The leaders also discussed harmonising telecommunications, with President Ruto calling for the actualisation of the mobile one area network to make calls between the two countries local.
“We want a telephone call from Kenya to Tanzania to be local,” he asserted. “We want a telephone call from Tanzania to Kenya to be a local call because we are one people.”
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The forum concluded with a commitment to institutionalise the event annually, alternating between the two countries.
The two governments also agreed to establish a joint mechanism to eliminate outstanding barriers and publish a time-bound resolution plan.
“If we act with unity, with resolve and with purpose, I have no doubt that the Kenya-Tanzania partnership will ultimately stand as a continental model of what African integration can achieve,” President Ruto concluded.
