Kenyan investors out to profit from Tanzania’s pro-business policies

Dar es Salaam. Kenyan investors, eyeing Tanzania’s fertile business landscape, are seeking to raise the number of their projects in the country by 100 percent over the coming years.

This, they pursue, in order to cash in on Tanzania’s pro-business policies and growth potential.

To achieve the goal, they will encourage their countrymen to come and invest in Tanzania while simultaneously encouraging those that are currently doing business in the country to up their investments.

Speaking at the Kenyan Diaspora in Tanzania (Kedit) forum in Dar es Salaam, on March 9, 2024, investors congregated to strategise on bolstering investments, with a particular emphasis on encouraging compatriots to tap into Tanzania’s promising market.

“Tanzania still remains our potential investment destination. We want to encourage more Kenyans to come and invest and help take our companies in Tanzania to at least 1,000,” asserted a Kenyan investor in Tanzania, Mr Peter Kariuki, in an interview with The Citizen.

Mr Kariuki highlighted the conducive business environment in Tanzania as a primary motivator for expanding operations and fostering growth.

Currently, Tanzania hosts over 500 Kenyan companies spanning various sectors, collectively employing between 70,000 to 100,000 individuals, according to insights shared by the Kenyan High Commissioner to Tanzania, Mr Isaac Njenga. The target is to raise the number to 1,000 in the shortest possible period.

“Kenya is ranked among the top five sources of foreign direct investment to Tanzania with companies investing approximately $2 billion currently,” Ambassador Njenga underscored, emphasizing the deep-rooted economic ties between the two nations.

Acknowledging the symbiotic relationship between Kenya and Tanzania, Mr Njenga lauded Tanzania as one of Kenya’s strongest partners in the region.

“Tanzania ranks in the top 10 global destinations for Kenyan exports, likewise Kenya ranks in the top 10 destinations for Tanzanian exports globally. We are each other’s significant trading partners in the region,” he affirmed.

Reflecting on the vital role of the diaspora in national development, the High Commissioner hailed Kenyan remittances from Tanzania, noting their substantial contribution to the economy.

“It’s huge. Recently, when South Africa faltered, we surpassed them. You play a critical role in national building and we can go even beyond this,” he commended, as he stressed the diaspora’s pivotal role in enriching the country’s human capital through their diverse skills and experiences.

In addition to economic ties, the forum also showcased burgeoning interest from Kenyan investors in sectors such as real estate, education, and transportation in Tanzania.

A prominent figure in real estate investment, Ms Jane Atieno, expressed optimism about the prospects of bolstering business cooperation between the two countries.

“They have already begun the process of entering the country to invest. This is one of the ways that will boost the business cooperation between our countries to higher levels,” she said.