The agreement was endorsed by Tanzanian President Samia Suluhu Hassan and Kenyan President William Ruto following a high-level Tanzania–Kenya Business Forum held at the Julius Nyerere International Convention Centre in Dar es Salaam.
Business leaders and policymakers from both countries proposed the creation of the council as a permanent mechanism to strengthen trade, investment and cross-border commercial cooperation between East Africa’s two largest economies.
The initiative aims to increase bilateral trade from the current 860 million US dollars to more than 1 billion US dollars, equivalent to about 2.6 trillion Tanzanian shillings, by improving the movement of goods, services and investment flows between the neighbouring states.
Speaking at the forum, President Samia described Tanzania and Kenya as deeply interconnected economies with shared regional responsibilities.
“Tanzania and Kenya must move forward together. We cannot be divided by perceptions or selfish interests,” she said. “We are one, and we are ready to work closely.”
She said the two countries share strong historical, cultural and economic ties that should be transformed into broader prosperity through coordinated trade and industrial strategies.
The Tanzanian leader also highlighted the growing role of the private sector in East Africa’s economic transformation, noting that businesses are expected to contribute up to 70 per cent of the implementation of Tanzania’s forthcoming Development Vision 2050.
Regional integration and investment
President Samia praised Kenyan companies operating in Tanzania, including KCB Bank and Kenya Airways, for supporting employment and tax revenues, while encouraging Tanzanian firms investing in Kenya to comply with regulations and strengthen economic cooperation.
Among Tanzanian companies expanding into Kenya are Bakhresa Group, Taifa Gas and Amsons Group.
Samia also confirmed Tanzania’s readiness to host the business forum on a rotating annual basis, with the next meeting expected in Nairobi in 2027.
The forum had not convened since her state visit to Kenya in 2021, making its revival a significant diplomatic and commercial signal amid renewed efforts to accelerate integration within the East African Community (EAC).
For his part, Ruto said the Joint Business Council would serve as a permanent institutional platform for economic dialogue between the two countries.
“The Joint Business Council will institutionalise the annual Tanzania–Kenya Business Forum as a permanent platform,” he said.
Ruto argued that East Africa’s future prosperity depends on countries leveraging complementary strengths through coordinated infrastructure and industrial investments, including railways, electricity interconnectors and integrated agricultural value chains.
He also called for the development of a harmonised commercial system to ease trade and business operations across borders.
“You cannot share poverty; you can share wealth,” Ruto said. “We want to re-engineer our engagements.”
Tackling trade barriers
The Kenyan president said recent discussions with President Samia had already resulted in progress toward reducing non-tariff barriers that have historically slowed regional commerce.
According to Ruto, inefficiencies at border crossings and regulatory inconsistencies have cost both countries an estimated 100 million US dollars in lost trade opportunities.
He cited improvements in border efficiency, harmonised standards and reduced cargo delays as early signs of stronger bilateral cooperation.
Ruto added that the free movement of people, goods and services remains central to the success of East Africa’s integration agenda and the wider ambitions of the African Continental Free Trade Area (AfCFTA), which seeks to create a continent-wide single market.
Analysts say closer economic coordination between Tanzania and Kenya — two of the region’s largest transport and manufacturing hubs — could play a decisive role in strengthening intra-African trade and positioning East Africa as a more competitive investment destination globally.
Notes to Editors
· Tanzanian President Samia Suluhu Hassan and Kenyan President William Ruto endorsed the establishment of a Joint Tanzania–Kenya Business Council aimed at strengthening bilateral trade, investment and regional economic integration.
· The agreement was announced during the Tanzania–Kenya Business Forum held at the Julius Nyerere International Convention Centre in Dar es Salaam.
· The new council is expected to institutionalise an annual Tanzania–Kenya Business Forum as a permanent platform for dialogue between governments and the private sector.
Media Contact:
Information Services Department and Office of The Chief Government Spokesman
E-mail: maelezotv@gmail.com
Phone: +255 754 750 765; +255 754 698 856; +255 759 714; +255 713 381 904
Availability: EAT, UTC +3
