Trade Between Kenya and Tanzania Drops for the First Time in Nearly a Decade
Trade between Kenya and Tanzania declined in 2025, marking the first drop in the value of goods exchanged between the two countries since 2016.
The total trade volume fell by 9 percent, reaching Sh114 billion compared to Sh126 billion recorded in 2024. This development has drawn attention from business leaders and officials in both nations as they look for reasons behind the slowdown.
Several factors appear to have contributed to the reduction in trade. Changes in regional demand, supply chain issues, and shifts in the types of goods being moved across the border may have played a role. Both countries rely heavily on each other for various products, including agricultural goods, manufactured items, and raw materials, making the decline significant for traders and industries on both sides.
The drop comes despite ongoing efforts by the East African Community to strengthen economic ties and remove barriers to trade among member states. Kenya and Tanzania have historically enjoyed strong business links, with regular movement of goods helping to support jobs and economic growth in border regions. Officials are now expected to examine the situation closely to prevent further decreases.
Looking ahead, businesses and policymakers in both countries will need to find ways to revive and expand trade. Strengthening cooperation, improving transport links, and addressing any emerging challenges could help restore the upward trend seen in previous years. As the two neighbours continue to work together within the region, reversing this decline will be important for shared economic progress.
