The Presidents of Tanzania and Kenya have agreed to accelerate the construction of a gas pipeline designed to increase trade and reduce energy costs for both countries.
The decision was taken on Monday at bilateral talks in Dar es Salaam led by Tanzanian President Samia Hassan and Kenyan President William Ruto during a two-day visit.
Last year, Hassan and then Kenyan president Uhuru Kenyatta signed an agreement in Nairobi to start work on the pipeline project, but actual construction has yet to begin.
The two countries have generally maintained positive ties in politics and trade, but have occasional trade disputes.
Tanzania imposed a 25% import duty on Kenyan confectionery in 2020, claiming that the country was using zero-rated industrial sugar imports to produce it. In another dispute, Kenya banned Tanzanian tourist vans from accessing the Maasai Mara National Reserve, arguing that Tanzania had banned Kenyan operators from accessing the Serengeti National Park.
These differences were resolved when Tanzanian Hassan went to Nairobi last year to meet Kenyatta.
There were 68 identified trade barriers between Tanzania and Kenya at the time, Hassan said, and 54 of these non-tariff barriers have been resolved. Trade and investment ministers were tasked with working to resolve the remaining 14 barriers, Hassan said.
The proposed pipeline would run approximately 600 kilometres from Dar es Salaam to Mombasa. There is no scheduled completion date.