The trade fight between Tanzania and Kenya is not anywhere near the end but a spirited continuation of arm twisting.
Several weeks ago, Kenya wanted its locally made chocolate, ice crème, sweets and biscuits to enter the Tanzanian market without any restrictions but the Tanzanians rejected this deal saying Kenya was producing these products using imported raw materials.
With this state of affairs, Kenya has hit back Dar es Salaam with a hefty punch by imposing a 25% import duty on Tanzanian products like flour which is processed from imported wheat.
Tanzania maintains that it has retained 25% import duty on Kenyan-made confectioneries such as chocolate, ice cream, biscuits and sweets, citing use of imported industrial sugar.
Tanzania also says will continue to levy 25% duty on Kenya’s edible oils as well as the Tembo cement brand produced by Bamburi Cement Factory which it says are made from imported palm and clinker respectively.
This row comes barely a month after the two countries announced an end to all trade disputes.
The EAC common market allows for free movement of locally manufactured goods. Tanzania and Uganda revenue bodies have however accused Kenyan manufacturers of tilting competition in their favour by using imported industrial sugar under a 10% duty remission scheme.