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REGIONAL TRADE
Neighbours Tanzania and Kenya at loggerheads over new import tariffs
By our African Marketing Confederation News Team | 2025
Concerns that Tanzania’s imposition of taxes on Kenyan dairy products and other food items could undermine the EAC.
The frequently frosty trade relations between Tanzania and Kenya have taken another downward turn, with Tanzania imposing new taxes on imported Kenyan dairy products and a variety of other food items.
Kenya’s government and producers have reacted angrily, saying the tariffs are in breach of the East African Community’s Customs Union rules, which aim to promote free trade among member states.
Both nations are members of the East African Community (EAC), which is a regional trading bloc also comprising the likes of Burundi, DRC, Rwanda and Uganda.
The products that have been targeted by Tanzania for higher tariffs are milk, yoghurt, butter, eggs, sausages, and confectionery such as biscuits.
Photo by Daniel & Hannah Snipes from Pexels
Trade relationship was showing signs of improvement
These taxes come at a time when relations between Nairobi and Dodoma (Tanzania’s capital) had shown signs of improvement after years of on-and-off disputes, the Kenyan-based Business Daily Africa news website reports.
“We are seeing a return of protectionism that hurts businesses on both sides,” the website quotes a Kenyan exporter of dairy products to Tanzania as saying.
“Tanzania’s decision to impose these levies follows a pattern of similar measures, including a temporary ban on Kenyan tea imports in 2024 over quality concerns, which was later resolved through talks,” Business Daily Africa adds.
“Tanzanian officials have not publicly explained the new taxes, but past actions suggest a desire to protect local industries.”
Comments The Citizen, the Tanzanian-based daily newspaper: “The imposition of these tariffs could have broader implications for trade within the East African Community.
“If Tanzania’s protectionist measures are deemed successful, other countries in the region may consider implementing similar policies, which could undermine the goals of the EAC, such as free trade and economic cooperation among member states.
“While Tanzania defends the move as necessary to protect its local industries, the policy has created challenges for Kenyan businesses, particularly in the dairy and food sectors. The diplomatic fallout from these taxes is ongoing, with both nations now needing to find a way to resolve the dispute and maintain economic cooperation within the EAC.”
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