Integration, Cross Border Trade and Dispute Settlement between Kenya and Tanzania

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Abstract:

The main objective of this study was to examine integration, cross border trade and dispute settlement between Kenya and Tanzania. It was guided by three specific objectives which include, to examine the nature of cross-border trade (CBT) and disputes between Kenya and Tanzania to investigate the mechanisms in place to resolve these disputes and to recommend other mechanisms that could be used to resolve the existing disputes. Decisively there is a significant trade between Kenyan and Tanzania with a lot of commodities being exchanged across the border. This trade involves product commodities as well as human capital. Kenya exports more than it imports from Tanzania with a significant margin of 34.21%. Trade between Kenya and Tanzania has been steadily decreasing at a rate of 7.66% for exports and 0.66% for imports. Trade disputes between Kenya and Tanzania range from, trade confrontation over the testing of commodities to job loss to foreigners as highlighted by the xenophobic remarks by one of the MPs in Kenya. Other disputes include a ban by Kenya on liquefied petroleum gas from Tanzania, which saw Tanzania retaliate by blocking Kenyan milk and its products, and cigarettes. There are also disputes experienced between pastoral communities of Tanzania and those from Kenya as well. Some of the diplomatic strategies that the Kenyan government and Tanzania have taken to address the cross border disputes include negotiation and delimitation and demarcation of border lines.

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Integration, Cross Border Trade and Dispute Settlement between Kenya and Tanzania

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