‘Past decade saw increased products from Kenya’

DAILY NEWS Reporters in Dodoma

Deputy Minister for Foreign Affairs and East African Cooperation, Dr Suzan Kolimba

GOODS and services imported from Kenya to Tanzania between 2005 and 2015 increased from 64.8bn/- to 270bn/-, the National Assembly was informed here yesterday.

Deputy Minister for Foreign Affairs and East African Cooperation, Dr Suzan Kolimba, said Kenyan exports for the 10-year period went up by 14.9 per cent. The exports include human and veterinary drugs, cooking fat, cement, soap, spare parts, plastic products and packaging items used by entrepreneurs and small and medium enterprises.
Dr Kolimba was responding to a basic question by Nkenge Member of Parliament, Dr Deudorus Kamala of Chama Cha Mapinduzi. The MP had sought government explanation on the value of Kenyan goods and services between 2005 and 2010.
However, the lawmaker questioned the effects of importing the same products which are also produced by domestic industries. “To what extent did the products produced by local industries suffer as a result of tax exemption, which was to be phased-out slowly to pave way for the single custom territory?” he queried.
In response, the Deputy Minister said the government decision to adopt the Customs Union was meant to promote products and trade within the East African Community (EAC) member states. “It also meant to increase investment and production within the community.
During the initial stage of implementing the single Customs Union we had a grace period of four years (2005-2009) where all the products were charged tax,” she said. However, semi-finished and finished goods, which were included in group B, were not charged.
Dr Kolimba said Tanzanian industries faced a number of challenges, which include an influx of group B products from Kenya in the local markets.
The move increased competition, she noted. She said increased non-customs barriers of group B products such as wine and whisky when exported to Kenya they face stiff competition in the market as Tanzanians prefer imported products.
“The government formed a national committee to address the barriers, improve the investment environment and push for improved production to meet the market demands in the region,” she noted.