Fresh momentum builds behind cross-border investment inflows

Dar es Salaam. Fresh momentum is building behind cross-border investments between Tanzania and Kenya, as business leaders and policymakers intensify calls for closer cooperation to drive industrial growth and regional integration.

Speaking in Dar es Salaam during the Tanzania–Kenya Investment Forum on Monday, the managing director and chief executive officer of Amsons Group, Mr Edha Nahdi, said Kenya continues to offer a stable and predictable investment climate that supports long-term business expansion.

Amsons Group acquired majority shareholding in the Kenya-based Bamburi Cement in December 2024.He noted that the company’s operations in Kenya have been characterised by steady growth, policy consistency and a receptive market environment.

“Our experience in Kenya has been one of growth and good reception. We have found a market that is hungry for infrastructure and a workforce that is exceptionally skilled,” he said.

Mr Nahdi said the group’s recent acquisitions, including a 69 percent stake in East African Portland Cement Company and the takeover of Bamburi Cement, mark a transition from expansion to long-term responsibility.

“We have not just bought assets; we have embraced responsibility in supporting industrial development and infrastructure expansion,” he said.  He added that the investments align with Kenya’s development priorities and reflect a sustained commitment to the market.

Mr Nahdi said Amsons Group has invested hundreds of millions of dollars across the region, including a planned $250 million clinker plant in Kwala, Tanzania.

He described the company’s expansion strategy as anchored in regional integration within the East African Community.

“I am a firm believer in the shared destiny of our two nations. When Tanzanian capital meets Kenya’s entrepreneurial spirit, the result is transformative,” he said.

Mr Nahdi noted that the group’s entry into Kenya followed earlier unsuccessful attempts in 2012, 2017 and 2018. The eventual breakthrough in 2024, he said, was the result of a more structured and strategic approach.

He urged Tanzanian investors to take advantage of Kenya’s skilled workforce and industrial base, while encouraging Kenyan entrepreneurs to explore opportunities in Tanzania’s manufacturing and infrastructure sectors.

The renewed push for investment cooperation comes amid rising capital flows between the two countries, with businesses increasingly expanding beyond national borders.

Addressing Tanzania’s Parliament in Dodoma on May 5, Kenyan President William Ruto said bilateral investment ties have deepened significantly in recent years.

He noted that Kenyan firms have invested more than $1.7 billion in Tanzania, supporting job creation, skills transfer and sectoral growth across manufacturing, energy, logistics, financial services and agriculture.

“At the same time, Tanzanian investments in Kenya, now valued at over $336 million, are steadily expanding,” he said. “They are driving employment, strengthening corporate linkages and fostering shared growth.”

President Ruto said he expects Tanzanian investments in Kenya to more than double by the end of the year, citing increased investor activity and improving business confidence.

He also addressed concerns raised in Kenya following the acquisition of Bamburi Cement by Amsons Group, which had sparked debate over foreign ownership.

“I was asked why a Kenyan company was being acquired by a Tanzanian investor,” he said. “Yet the company was previously owned by the French, and there were no objections. Why now?”

He stressed that cross-border investments should be viewed as drivers of economic expansion rather than sources of concern.

“These are not merely capital flows. They are catalysts for trade expansion and industrial growth, particularly in manufacturing and agro-processing,” he said.

With the right policy support, he added, the current momentum could significantly boost bilateral trade and position both countries to benefit more from the East African Community and the African Continental Free Trade Area.

President Samia Suluhu Hassan also noted that the expansion of Tanzanian firms into Kenya, including Amsons Group, reflects strengthening private sector linkages between the two countries.

She said increased cross-border investment signals deepening economic cooperation and growing confidence among regional investors.

As bilateral engagement gathers pace, both public and private sector leaders expressed optimism that sustained collaboration will unlock broader opportunities for trade, industry and shared prosperity across East Africa.

President Samia Suluhu Hassan also noted that Tanzanian companies expanding into Kenya, including Amsons Group, reflect growing cross-border private sector participation between the two countries.