Kenya, Tanzania deepen trade push with new integration plan

Kenya and Tanzania have stepped up their cooperation on trade and investment with a fresh push aimed at easing cross-border movement of goods, expanding infrastructure, and growing private sector opportunities under a shared regional growth plan led by President William Ruto and President Samia Suluhu Hassan.

The two countries, meeting in Dar es Salaam, said the new phase of engagement is meant to turn their economic relationship into a more connected and practical partnership that benefits businesses on both sides. The approach is being framed as “Two nations. One integrated opportunity,” reflecting a joint effort to treat the two markets as part of a wider investment space in East Africa.

Figures presented at the forum show that trade between Kenya and Tanzania has reached about Sh111 billion in 2025. Officials noted that the flow of goods between the two countries is becoming more balanced, pointing to gradual improvements in access for traders and manufacturers operating across the border.

Investment links between the two countries have also grown. Kenyan investments in Tanzania now stand at more than Sh219.3 billion, while Tanzanian investments in Kenya have reached over Sh43.3 billion. These figures were presented as evidence of rising confidence among investors and increasing business activity across the two economies.

At the wider regional level, trade within the East African Community rose to about Sh20.2 trillion in 2025. Intra-regional trade also went up by 28%, reflecting stronger movement of goods and services between member states and deeper economic ties in the region.

Even with the progress, leaders noted that the main task ahead is turning agreements into action. “The focus now shifts to execution,” the forum statement noted, highlighting the need to ensure that commitments made are fully implemented.

One of the key areas of focus is the removal of non-tariff barriers that continue to slow down trade across borders. Both governments agreed to put in place a time-bound system to handle and reduce such barriers so that movement of goods and services becomes faster and more predictable.

The business forum is also set to be made an annual platform. This will allow governments and private sector players to regularly review progress, address emerging challenges, and keep engagement active between the two sides.

Infrastructure development was another major point of discussion. Kenya and Tanzania committed to speeding up investments in transport systems, energy projects, and digital networks. They also plan to bring in more private capital to support large projects aimed at lowering the cost of doing business and improving efficiency in trade routes.

Both countries have set targets for the next three years. They aim to raise bilateral trade to about Sh129 billion and attract around Sh64.5 billion in new cross-border investments. The targets are part of a broader plan to deepen economic integration and make the region more attractive to investors.

As part of the long-term outlook, Kenya and Tanzania are positioning themselves as a single competitive market within East Africa. The focus is on improving connectivity, aligning policies, and strengthening cooperation to support economic growth across the region.

The outcomes of the Dar es Salaam meeting show a continued push toward closer economic ties, with both countries now focusing on implementation as the key step in shaping future progress.