Kenya’s imports from Tanzania slumped 19% on imposed trade barriers in 2023

KENYA – Kenya’s imports from Tanzania fell by KES10.23 billion (US$70M) in 2023, a 19.2% drop on the back of renewed trade barriers which largely hit the flow of grains, according to the current data by the Central Bank of Kenya.

The data showed that traders trucked in goods worth KES43.05 billion (US$295M) from Tanzania compared with a record KES 53.28 billion (US$365M) in 2022.

The drop was the fastest slide since 2016 (seven years) when the administration of the then-late John Magufuli adopted protectionist policies when he first took power.

Tanzania is a major exporter of maize and rice, not only to Kenya but also to other EAC bloc states such as DR Congo, Burundi and South Sudan.

However, in early 2023, Dar es Salaam imposed guidelines on trade in grains between the country and partners in the seven-nation East African Community bloc, in a protectionist move to prevent food inflation in the country.

The measures were part of food export restrictions, which Dar es Salaam started enforcing in 2022 to ensure food security in a trading bloc, which largely restricted the importation of maize into Kenya

The rules taken by the Samia Suluhu administration required traders to open and register offices in Dar es Salaam for purposes of getting licences to export maize and other grains as well as tax clearance certificates.

For traders, the measures were viewed as “unnecessary” barriers to the smooth flow of goods contrary to the EAC Common Market Protocol, which allows free movement of goods, services, capital and labour within the bloc.

The rules largely restricted the importation of maize into Kenya. This saw more than 200 Kenya’s trucks blocked for days at the Namanga and Holili borders in June 2023, prompting the intervention of President William Ruto.

This came at a time Kenya was experiencing a steady decline in maize production, from 42 million bags in 2020 to 36 million bags in 2021, due to poor rainfall and the high cost of inputs.

During the time, in maize flour prices in Kenya hit record-high levels after millers were forced to look for maize supplies in far-flung markets like Ukraine under the Black Sea Grain Initiative.

However, the country has been making effort to slash imports through boosting local production.

According to the Ministry of Agriculture, the national annual maize requirement is 52 million bags, which includes other uses such as the manufacture of livestock feeds, stock retained as seeds, and the manufacture of other products.

The country’s maize production, however, is on an inclining projection, with 2023 realizing a production of 61 million bags following a raft of measures by the government and the improving climatic condition.

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