The longstanding trade dispute between
Kenya and Tanzania is derailing business between the two neighbours to
the detriment of entrepreneurs who depend on it.
For a
long time, Tanzania has been Kenya’s second largest export market after
Uganda, underlining its importance as a trading partner.
The
dispute has put in jeopardy the production of some goods in Kenya, as
businesspeople cannot continue normally until they have found other
markets to replace the seemingly unreliable Tanzanian one.
The
situation is therefore dire for those whose jobs that are dependent on
selling goods to Tanzania. In the first five months of this year,
Kenya’s exports to Tanzania fell by 34 per cent to stand at Sh8.2
billion compared to a similar period last year.
That
means more than a third of the value derived from selling products such
as palm oil, soap, medical drugs, cooking fat, iron sheets, sugar
confectionery and margarine to Tanzania was lost.
It is
for this reason that cancellation of a meeting intended to iron out
the differences between the two countries is unfortunate.
There
can be no doubt that traders on both sides of the common border need a
quick settlement of the impasse in order to resume normal production and
keep employees at work.
The
long-running market access battles with Tanzania have become worse in
the past few months after Kenya blocked importation of Tanzanian gas
through the Namanga border post over quality concerns.
Clearly,
both countries have issues with products coming from one another’s
territory. Resolving such a matter would definitely require
level-headedness and a willingness to understand each other’s position
however irrational it may seem.
Negotiators on both
sides must be driven by the understanding that the losers in all this
are ordinary citizens of both nations who are losing millions of
shillings in the blockade.
Kenya, which has been the
main beneficiary of the trade between the two nations, needs to be
particularly sensitive to the feelings of Tanzania and solidly address
its concerns.
The bottom line then is that both will
lose if they prolong the current dispute for too long -- meaning that it
is in the interest of the two countries to quickly resolve the matter.
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