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rucks ferrying maize from Tanzania to Kenya awaiting clearance at the Namanga border

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Political tension in Tanzania threatens Kenyan businesses, KAM

NAIROBI, Kenya, Nov 4 – The Kenya Association of Manufacturers (KAM) has raised concern over the ongoing unrest in Tanzania following the contested election of President Samia Suluhu, warning that the instability could disrupt vital cross-border trade between the two countries.

KAM Chief Executive Officer Tobias Olando said the political tension in Tanzania poses a threat to Kenyan businesses that rely on the neighbouring market for exports and imports.

“Kenya exported goods worth Sh67 billion to Tanzania in 2024 and imported goods worth about Sh57 billion,” said Olando.

“So that shows you Tanzania is a market that we need to have. If there is chaos in Tanzania, it means our businessmen who are exporting their products to Tanzania are not able to access that market and we need to get concerned.”

He noted that the disruptions have already affected the movement of goods and services across the border, straining regional logistics and trade.

“And the businesses that also import or traders also import some materials or some products from Tanzania are not able to import those products because of what is happening or what has been happening in Tanzania, so peace and stability in the East African region is good for all of us.”

Recent trade data underscores Tanzania’s growing importance as a trading partner and transit corridor for Kenya.

According to official trade statistics, Kenya exported goods worth Sh67.2 billion to Tanzania and imported Sh58.7 billionin 2024, reflecting rising integration between the two economies.

Tanzania also serves as a key transit route for regional cargo. In 2024, about 3.4 percent of all transit goods handled through the Port of Mombasa were destined for or originated from Tanzania, according to port data.

However, competition between the Northern Corridor (through Mombasa) and the Central Corridor (through Dar es Salaam) has intensified, with Kenya reportedly losing nearly 1.1 million metric tonnes of cargo to Tanzania in recent years as shippers diversify routes.

Olando warned that any prolonged instability in Tanzania would ripple across the East African region, undermining efforts to build an integrated and resilient regional economy.

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