Private Sector Urges Kenya, Tanzania to Remove Trade Barriers, Fast-Track Integration

Private sector leaders from Kenya and Tanzania, led by the Kenya Private Sector Alliance (KEPSA) and the Tanzania Private Sector Federation (TPSF), have urged both governments to fast-track economic integration.

At the same time, they called for the removal of remaining barriers that continue to slow down trade within the East African Community (EAC).

The call came through a joint communique read by KEPSA CEO Ms. Carole Kariuki during the Tanzania-Kenya Business Forum on May 5, 2026. The event took place in the presence of Samia Suluhu Hassan, President of Tanzania, and William Ruto, President of Kenya.

In addition, the business community stressed the need for a seamless regional market. It called for stability, faster movement of goods and people, as well as stronger shared infrastructure systems.

Meanwhile, KEPSA Chairperson Dr. Jaswinder Bedi noted that the East African region continues to record strong economic growth. However, he pointed out that structural weaknesses still undermine trade performance.

Furthermore, he explained that heavy reliance on imported capital goods and energy products continues to widen the trade deficit. As a result, the region’s balance of trade remains under pressure despite rising intra-regional activity.

Business Leaders Highlight Cross-Border Opportunities

Similarly, private sector players shared practical insights during the forum. For instance, the CEO of KCB Group, Mr. Paul Russo, highlighted the bank’s experience operating in both Kenya and Tanzania. He noted that success depends on regulatory alignment across borders.

Moreover, Mr. Tobias Alando, CEO of the Kenya Association of Manufacturers, spoke during a panel on “Agriculture, Trade & Investment: From Farm to Market.” In his remarks, he called for stronger regional value chains to improve competitiveness.

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Presidents Reaffirm Commitment to Integration and Reform

On the policy front, the two Heads of State reaffirmed their commitment to a predictable business environment. Specifically, they pledged regulatory clarity, investor protection and infrastructure integration.

“Beyond trade and capital, our people remain the backbone of this partnership. The free movement of people, labour, services and capital continues to unlock innovation, enterprise and share opportunity,” William Ruto said.

“Despite this progress, we must acknowledge that we are still underperforming relative to our full potential. The gap lies not in ambition, but in execution,” he added.

On her part, Samia Suluhu Hassan urged delegates to move beyond competition. Instead, she called for a shared spirit of brotherhood and partnership. She emphasised that Kenya and Tanzania belong to the same family, not rival camps.

Furthermore, she noted that political will already exists. However, she said attention must now shift to practical implementation.

Finally, she stressed that the Memoranda of Understanding are now officially signed. Therefore, both sides must move beyond rhetoric and commit to delivering tangible results.

Also Read: Amsons MD Edha Nahdi Hails Tanzania–Kenya Synergy as Key Driver of Regional Economic Growth

Trade Barriers and Regulatory Gaps Under Scrutiny

Despite progress, delegates identified Non-Tariff Barriers (NTBs) as a major challenge. In addition, they raised concerns over discriminatory taxes and inconsistent regulatory standards.

At the same time, they pointed out persistent border delays. These delays continue to increase the cost of doing business, especially in the agricultural sector.

Eight MoUs Signed as Leaders Set Reform Deadlines

In conclusion, the summit ended with the signing of eight Memoranda of Understanding (MoUs). These agreements cover trade, investment, infrastructure and transport.

Additionally, leaders directed officials to eliminate all remaining non-tariff barriers by May 31, 2026. This directive builds on earlier commitments to ease cross-border trade by June.

Finally, the forum concluded with B2B matchmaking sessions and high-level engagements. These sessions aimed to unlock new regional business opportunities.

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Tanzania-Kenya Business Forum attended by Presidents Samia Suluhu and William Ruto in Dar es Salaam. PHOTO/Amsons Group