Neighbours Tanzania and Kenya at loggerheads over new import tariffs

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.”