The just concluded Kenya-Tanzania Business Forum 2026 brought together policymakers and executives in Dar es Salaam with a focus on accelerating cross-border investment and trade, as both governments moved to resolve longstanding barriers and deepen private sector collaboration.
Held at the Julius Nyerere International Convention Centre, the forum convened more than 300 participants under the theme “Unlocking Private Sector Growth and Investment,” with William Ruto and Samia Suluhu Hassan presiding over discussions. The event marked a key milestone in a two-day state visit by President Ruto, which also included a historic address to the Tanzanian Parliament, signalling renewed momentum in bilateral relations.
Agreements Signed Across Key Sectors
A key part of the forum was the signing of eight landmark agreements spanning energy, transport, agriculture and public sector cooperation. The deals covered railway development, maritime transport, standards harmonisation and seafarer certification, among other areas.
Additionally, a tripartite MoU was signed between the Kenya National Chamber of Commerce and Industry (KNCCI), the Tanzania National Chamber of Commerce (TNCC), and the Zanzibar National Chamber of Commerce (ZNCC) to coordinate trade facilitation and investment flows.
Trade Targets and Policy Deadlines
Kenya and Tanzania set a strict deadline of June 30, 2026, to eliminate all remaining non-tariff barriers (NTBs), aiming to address delays, regulatory inconsistencies and overlapping taxes that have constrained trade. The Kenya-Tanzania Business Forum 2026 also set a target of KSh 130 billion (approx. $1 billion) in new trade and KSh 65 billion (approx. $500 million) in cross-border investments over the medium term.
President Ruto said East African trade volumes were expanding but remained underdeveloped relative to potential. He noted that EAC trade rose 25% to about $156 billion in 2025, while intra-regional trade increased 28% to $19.3 billion, accounting for roughly 12% of total trade. He added that bilateral trade between Kenya and Tanzania declined to about $860 million in 2025 from $950 million a year earlier, with around $100 million lost due to non-tariff barriers.
Private Sector Signals Capital Deployment
KCB CEO Paul Russo, said the bank had deployed approximately $520 million over the past two and a half years into four Tanzania-linked transactions. These included financing for cement acquisitions, construction projects and industrial assets.
Other companies pointed to large-scale commitments. Taifa Gas said private capital would depend on bankable projects with clear risk allocation, while Amsons Group detailed investments including a $300 million cement acquisition and a $250 million clinker plant.
Structural Constraints and Coordination Plans
Kenya Private Sector Alliance and Tanzania Private Sector Foundation said the two countries anchor a combined economy exceeding $200 billion with a population of over 300 million. However, they cited persistent barriers including standards misalignment, border delays and multiple taxation regimes. To address these issues, the private sector backed the formation of a joint Kenya–Tanzania Business Council to coordinate advocacy and monitor implementation of reforms.
Infrastructure and Integration Agenda
President Ruto said EAC trade growth would depend on logistics and energy connectivity, confirming feasibility work on a Tanzania–Mombasa gas pipeline and progress on a 500-kilometre power interconnector linking the two countries. He also called for the Mobile One Area Network to be fully actualised between Kenya and Tanzania, allowing cross-border calls to be billed as local, in line with regional integration efforts.
Tanzania’s Long-Term Economic Model
On the Tanzanian side, President Samia Suluhu Hassan outlined the country’s development framework, stating that Tanzania Vision 2050 will be 70% private sector-led, 22% government-led, and 8% public enterprise-led. The model places private investment at the centre of growth, with regional partnerships seen as a key delivery channel.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.