- Kenya’s Exports to Tanzania Hit USD 139.42 Million in the first quarter of 2022
Thursday, 9th June 2022: – Horohoro Lunga-Lunga Kenya Tanzania Border. Speaking at the EABC Trade Facilitation Forum at Horohoro-Lunga Lunga OSBP, Mr. John Bosco Kalisa said Kenya doing destination clearance of goods at Horohoro OSBP leads to delays and longer queues of cargo trucks to Kenya.
Mr. Kalisa, urged that Kenya Revenue Authority (KRA) officials should be posted to the key cities in Tanzania to facilitate the pre-arrival clearance of exports from Tanzania to Kenya to reduce traffic queues at the border. Tanzania has already posted Tanzania Revenue Authority (TRA) officials in Mombasa and Nairobi to facilitate the pre-arrival clearance of goods under the Single Customs Territory framework.
Kenya’s exports to Tanzania for the first quarter January-March 2022 stood at USD139.42 million while imports at USD 118.6 million (Central Bank of Kenya).
The Manager of Horohoro OSBP Tanzania said, “the pilot running of one-stop border operations at the Horohoro-Lunga Lunga One-Stop Border Post has eased the free movement of goods and persons between Kenya and Tanzania.”
The Manager expounded that the number of trucks entering Kenya from Tanzania has increased to 150 per day while 80 cross over into Tanzania daily. Tanzania’s trade volume increase is attributed to coal and maize exports.
Mr. Sadik Ndoro, Chairman of Clearing and Forwarding Associations appealed for the removal of the Single Tax System levy charged on Kenyan trucks entering Tanzania.
He commended the Governments of Kenya and Tanzania for waiving off COVID-19 mandatory testing for fully vaccinated passengers.
The chairperson of women cross-border traders in Kenya Ms. Zipporah urged the county governments to waive off cess levies to ease the free movement of cargo across EAC borders. She further appealed to the border management to institute a trade help desk for women cross-border traders and construct cross border market “Jumiya Market” with amenities such as crèche & stores.
Mr. Sammy Tutua, Chairman of Cross Border Traders in Kenya called for more sensitization campaigns for MSMEs on custom procedures and EAC simplified trade regime.
In her remarks, Ms. Eugenia Mwesiumo, from the Ministry of Foreign Affairs and East African Cooperation -United Republic of Tanzania said “EAC is more integrated than other regional economic communities in terms of social and trade ties.”
Dr. Juma Wahungu from the Ministry of EAC and Regional Development Kenya commended EABC for rolling out dialogues at the border with the business community in order to resolve trade barriers.
The Manager of Kenya Revenue Authority at LungaLunga OSBP said imports for Tanzania increased to 3300 trucks per month from 1500 trucks while exports stand at 1000 trucks following the elimination of Non-Tariff barriers.
Speaking at the Forum, Mr. John Bosco Kalisa said” intra-EAC trade was at USD 5.9 billion in 2020.” He said a joint border performance charter and instituting a green lane for EAC originating goods will enhance trade facilitation and boost intra-EAC trade to 40%.
In 2021 Kenya’s exports to Tanzania hit 409.7million in 2021 from USD.294.9 million in 2020 while Kenya’s imports from Tanzania stood at USD. 489.8million in 2021 and USD.258.3million in 2020. (International Trade Centre)
The trade facilitation forum was supported by GIZ “Support to East African Market-Driven and People-Centered Integration” programme (SEAMPEC).
The traders called for the formation of a committee to oversee the acquittal of motorcycles held at the police stations, Seminars on EAC export procedures and access to markets, Bank at the OSBP on the Kenya side, Construction of road bumps at the OSBP to reduce accidents, Establishment of women cross border association on Tanzania side, elimination of bureaucracy on multi-agency forms, Inclusion of cross border trades in the joint border management meeting, capacity building on African Continental Free Trade Area and youth on business matters
The EABC Trade Facilitation Forum was attended by over 50 delegates composed of Officials from the Ministry of EAC Affairs, trade facilitation agencies, importers, exporters, transporters & freight forwarders and women cross-border traders.