The Kenya-Tanzania Business Forum 2026 placed banks as central players in unlocking regional private capital, with banking leaders outlining fresh financing commitments tied to infrastructure, manufacturing, and trade expansion between Kenya and Tanzania.
Held at the Julius Nyerere International Convention Centre under the theme “Unlocking Private Sector Growth and Investment,” the event brought together more than 300 delegates, including government officials, financiers, and business executives. Presidents William Ruto of Kenya and Samia Suluhu Hassan of Tanzania led discussions focused on strengthening bilateral trade and investment ties. The forum formed part of a two-day state visit by President Ruto, which also included an address to Tanzania’s Parliament as both countries sought to deepen commercial cooperation and accelerate joint projects.
Banking executives described the sector as the region’s financial services anchor, tasked with helping unlock the KSh 65 billion ($500 million) cross-border investment target announced during the summit.
KCB Reveals $520 Million Tanzania-Linked Financing
Speaking during the forum, KCB CEO Paul Russo said the lender had deployed approximately $520 million (KSh 67.6 billion) over the past 2.5 years into four major Tanzania-linked transaction.
The disclosed financing includes:
- $180 million for cement acquisitions in Tanzania
- $120 million in financing for fleet and cement assets
- $110 million for construction-related projects
- $100 million allocated to an undisclosed facility
Russo said the focus is shifting from broad trade ambitions toward financing projects with clearer execution pathways and stronger commercial viability.
Among the transactions highlighted was syndicated financing for Tanzania’s SGR, part of broader efforts to integrate East Africa’s transport corridors. In Kenya, authorities are also securitising Rail Development Levy revenues to support funding for the Naivasha-Malaba extension, a project expected to strengthen regional freight movement.
Infrastructure Financing Expands Across Transport and Logistics
Banks also pointed to several transport and logistics projects requiring long-term capital deployment. These include the Malindi-Bagamoyo Superhighway, viewed as a strategic link for coastal trade and cargo movement between the two countries. Executives said lenders are increasingly financing logistics operators, contractors, and industrial suppliers participating in regional transport projects.
The banking sector’s role extends to maritime logistics, with financiers supporting port-related infrastructure and transport fleet expansion tied to regional trade. KCB noted that its $120 million in financing for fleet and cement assets supports logistics operations connected to cross-border construction and materials transport. Industrial financing has also accelerated, with lenders backing manufacturing capacity and urban development projects such as the Bomas International Convention Complex and Nairobi Railway City (worth KSh 4.5 billion).
SMEs Identified As Next Frontier for Regional Trade Financing
Beyond large infrastructure projects, lenders said the next phase of growth will depend on improving access to finance for Small and Medium Enterprises (SMEs) in navigating the Kenya-Tanzania corridor. Bankers said the goal is to help Kenyan and Tanzanian SMEs tap into international trade by linking them to supply chains created by major infrastructure and industrial investments. Executives from KCB and Equity noted that SMEs have massive opportunities as tier-two and tier-three suppliers across logistics, construction, energy, and manufacturing value chains.
During discussions, financial leaders from KCB Group and Equity Bank outlined financing models aimed at making cross-border trade bankable for smaller firms. This includes invoice financing, local purchase order lending, and trade guarantees for firms lacking traditional collateral. Equity Bank is currently leveraging a $60 million (Sh7.7 billion) AfDB trade guarantee facility to support imports and exports for SMEs engaged in intra-Africa trade.
Participants also highlighted opportunities for businesses building regional payment systems, particularly under the Mobile One Area Network initiative.
Bankers said fintech SMEs developing regional payment gateways and e-commerce platforms could benefit from increasing demand for interoperable financial systems across East Africa. Additional opportunities were identified for firms looking to distribute solar energy products and clean cooking solutions, areas increasingly financed under sustainable lending programs.
Joint Council to Monitor Implementation
Officials said implementation will be coordinated through the Joint Business Council, which has been tasked with improving regulatory clarity and resolving investment bottlenecks. A tripartite MoU signed by KNCCI and TNCC was also announced to create a support hub for SMEs, helping businesses address trade barriers, dispute resolution, and market access issues.
The agreement is expected to streamline business engagement between the Kenyan and Tanzanian private sectors as both governments push to convert diplomatic commitments into commercial deals. Paul Russo and Annastacia Kimtai said stronger coordination between lenders, regulators, and businesses will be critical to ensuring announced projects move from planning into execution.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.