Kenya, Tanzania agree to cooperate on improving trade ties

Kenya and Tanzania have agreed to work together to eliminate barriers to cross-border trade. President William Ruto said he has agreed with President Suluhu Samia on a plan that will spur commerce between the two countries.

He noted that a borderless East African Community (EAC) will foster free movement of goods and services, thereby unlocking the bloc’s economic potential.

The two countries agreed to start working on a gas pipeline from Dar es Salaam to Mombasa and later reroute to Nairobi. The 600km pipeline has been estimated by local reports to cost around $1.1bn.

President Suluhu said respective technocrats have been directed to start working on the implementation of the gas project.

In May last year, Mr Ruto’s predecessor, Uhuru Kenyatta and Ms Suluhu signed a preliminary agreement covering the transport of gas from Tanzania to Kenya for use in power generation and, potentially, for cooking and heating.

The deal was said to be part of a longer-term plan to expand infrastructure links between the two big economies of East Africa.