Dar reacts to Nairobi move on TZ oil exports

Dar es Salaam. The government has expressed concern over Nairobi’s refusal to allow Tanzanian exporters to transport cooking gas to Kenya through Kenya-Tanzania land borders.

According to a statement released by the Permanent Secretary in the ministry of Industry, Trade and Investment, Prof Adolf Mkenda, the government has learnt through the Nairobi media that the Kenyan government has imposed a ban on importation of cooking gas through Kenya-Tanzania land borders.

Prof Mkenda said Kenya’s decision is against East Africa Community protocol and an agreement reached between the two countries after Kenya imposed a ban on importation of cooking gas from Tanzania on May 18, 2017.

According to Prof Mkenda, Kenya’s decision affected major businesspersons and ordinary wananchi who earn their living through cooking gas trade. He noted that during the EAC sectorial meeting which brought together ministers of trade, industry, finance and investments from EAC member states, the issue featured.

He said it was decided during the meeting which was held on June 2, 2017, that Kenya should lift the ban in adherence to the EAC protocol.

“During the meeting, Kenya agreed to lift the ban on importation of cooking gas and wheat through Tanzania-Kenya borders,” he said, adding:

“However, it is with great disappointment that we have learnt through the Kenyan press that Kenya government has continued to implement the ban.” Prof Mkenda added that the government has already registered its complaints to its Kenyan counterpart.

Apart from imposing a ban on importation of cooking gas through the two countries’ borders, Kenya government has imposed a ban on importation of wheat, something, which, according to Prof Mkenda, is against EAC trade regulations.

He said that following Kenya’s decision, the Tanzanian government would continue to take measures to ameliorate the situation.

However, the PS didn’t elaborate what measures have been taken so far.

Reached for elaboration, Prof Mkenda said in a telephone interview with The Citizen that it was too early to reveal the measures which have been taken by the government in the wake of the Kenya’s decision.

He, however, reaffirmed that Tanzania would continue to adhere to EAC protocol.

“We will continue to strengthen trade relations between us and other EAC member states…we still believe Kenya is one of our key partners when it comes to trade in the EAC bloc,” Prof Mkenda said in the statement, adding: “We believe that decisions which are made in the official meetings between EAC member states must be implemented by concerned parts.”

The decision by Kenya’s Ministry of Energy raised the possibility of a shortage of cooking gas and a surge in the prices of the commodity in the neighbouring country.

On Monday, Principal Secretary Andrew Kamau said traders won’t be allowed to import gas imports via land borders in a week’s time.

The move, according to Mr Kamau, is meant to eliminate illegal cooking gas filling plants which have cropped up in various parts of the country posing safety and security risks.

“The Cabinet Secretary has written a letter to Energy Regulatory Commissions, Customs and Kenya Bureau of Standards and designated Mombasa as the only point of import for LPG. So if you want to play in this game, come and invest in Kenya, import through Mombasa and then we can now follow up who is supplying unlicensed dealers. But now this whole thing about Tanzania is a thing of the past,” Mr Kamau told a briefing for the oil marketing companies organised by Kenya Pipeline Company.

Mr Kamau later confirmed that the full implementation will begin before the end of the month.

The ban is, however, likely to catch unawares dealers who rely on the gas from Tanzania as most of them denied knowledge of the plan.

Energy Dealers Association said it was yet to receive communication regarding the ban.