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Trade war: Kenya bans importation of rice from Tanzania
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MONDAY, SEPTEMBER 17, 2018
Dar es Salaam. The government revealed on Saturday that Kenya has stopped importation of rice from Tanzania in yet another sign of unending trade wars between the two largest economies in East Africa.
The permanent secretary in the ministry of Foreign Affairs and International Cooperation, Prof Adolph Mkenda, told The Citizen that the Kenyan government stopped the importation of rice from Tanzania over claims of standards and packaging. “We are seeking an explanation [on the ban],” said Prof Mkenda. “We are sure that these are negotiable issues and it is our best belief that they are resolvable.” Apart from rice, there are also other issues that the government of Tanzania is trying to sort out with its Kenyan counterpart.
One is that which involves the 15 lorries carrying wheat flour, which are stranded at the Namanga border post. The trucks were stopped to pass through the border following the decision by Kenyan authorities to ask the owner to clear each lorry afresh.
This is despite the fact that the owner had already cleared 85 lorries, including those stuck at the border, which were bound various cities of Kenya.
The other issue, according to Prof Mkenda, is that involving Bakhresa’s energy drinks product, which the Kenyan authorities overvalue them in contrast to the exact value indicated by the producer.
This has made the product to be unfairly taxed by the Kenyan taxman and cause unnecessary inconvenience to the producer.
The PS also revealed that the government of Tanzania was aware of reports that consignments of beer from Tanzania have been confiscated in Kenya. “We have seen on social media platforms that consignments of beer have been confiscated in Kenya, but our High Commissioner in Kenya is working on the matter,” explained Prof Mkenda.
The aforesaid information surfaced amidst a meeting between Tanzania and Kenya, which among other things, downplayed claims that a trade war between the two states was brewing.
Briefing the media on Thursday, Prof Mkenda and Kenya’s High Commissioner to Tanzania, Mr Dan Kazungu, expressed their optimism that the solution would be found to some unresolved issues, which affect business between the two countries.
Prof Mkenda called upon traders from the two countries to be patient as they were striving to resolve the challenges, which were hindering cross border trade.
There has recently been reports that there is a ‘trade war’ between the two countries basing their reports on incidents perpetrated by the authorities from both sides.
In August, Kenya and Tanzania media reported that some Kenyans had blocked lorries from Tanzania from entering the country as they protested mistreatment of Kenyan traders.
However, the claims were later dismissed by the Kenyan authorities.
Recently there have also been reports that Tanzania had ignored a deal that granted Kenyan-made confectionery products like chocolate, ice cream, biscuits and sweets unrestricted entry into its market.
Tanzania banned importation of confectionary goods from Kenya by claiming that some manufacturers used raw materials from countries, which were not members of East African Community.
However, Prof Mkenda said that the row has been resolved.
The two countries have agreed that the goods will only be imported duty-free if the manufacturers used local raw materials.
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MONDAY, SEPTEMBER 17, 2018
Dar es Salaam. The government revealed on Saturday that Kenya has stopped importation of rice from Tanzania in yet another sign of unending trade wars between the two largest economies in East Africa.
The permanent secretary in the ministry of Foreign Affairs and International Cooperation, Prof Adolph Mkenda, told The Citizen that the Kenyan government stopped the importation of rice from Tanzania over claims of standards and packaging. “We are seeking an explanation [on the ban],” said Prof Mkenda. “We are sure that these are negotiable issues and it is our best belief that they are resolvable.” Apart from rice, there are also other issues that the government of Tanzania is trying to sort out with its Kenyan counterpart.
One is that which involves the 15 lorries carrying wheat flour, which are stranded at the Namanga border post. The trucks were stopped to pass through the border following the decision by Kenyan authorities to ask the owner to clear each lorry afresh.
This is despite the fact that the owner had already cleared 85 lorries, including those stuck at the border, which were bound various cities of Kenya.
The other issue, according to Prof Mkenda, is that involving Bakhresa’s energy drinks product, which the Kenyan authorities overvalue them in contrast to the exact value indicated by the producer.
This has made the product to be unfairly taxed by the Kenyan taxman and cause unnecessary inconvenience to the producer.
The PS also revealed that the government of Tanzania was aware of reports that consignments of beer from Tanzania have been confiscated in Kenya. “We have seen on social media platforms that consignments of beer have been confiscated in Kenya, but our High Commissioner in Kenya is working on the matter,” explained Prof Mkenda.
The aforesaid information surfaced amidst a meeting between Tanzania and Kenya, which among other things, downplayed claims that a trade war between the two states was brewing.
Briefing the media on Thursday, Prof Mkenda and Kenya’s High Commissioner to Tanzania, Mr Dan Kazungu, expressed their optimism that the solution would be found to some unresolved issues, which affect business between the two countries.
Prof Mkenda called upon traders from the two countries to be patient as they were striving to resolve the challenges, which were hindering cross border trade.
There has recently been reports that there is a ‘trade war’ between the two countries basing their reports on incidents perpetrated by the authorities from both sides.
In August, Kenya and Tanzania media reported that some Kenyans had blocked lorries from Tanzania from entering the country as they protested mistreatment of Kenyan traders.
However, the claims were later dismissed by the Kenyan authorities.
Recently there have also been reports that Tanzania had ignored a deal that granted Kenyan-made confectionery products like chocolate, ice cream, biscuits and sweets unrestricted entry into its market.
Tanzania banned importation of confectionary goods from Kenya by claiming that some manufacturers used raw materials from countries, which were not members of East African Community.
However, Prof Mkenda said that the row has been resolved.
The two countries have agreed that the goods will only be imported duty-free if the manufacturers used local raw materials.