Era of mistrust is now behind us, Ruto says 

Mombasa. Tanzania and Kenya recorded another milestone in trade relations yesterday when Kenyan President William Ruto graced the foundation stone-laying event of a $130 million (Sh300 billion) investment project by a Tanzanian company, Taifa Gas, in Dongo Kundu, Mombasa.

Trade between the two largest economies in the East African region has faced hurdles in the past; however, today, Tanzania has made the largest investment by a foreign private sector company in Kenya in recent memory.

Gracing the event as guest of honor, Kenyan president William Ruto acknowledged Rostam’s persistence. “Rostam is a very resilient investor. I know the struggles you have gone through to get to this stage. This investment should have happened five years ago, but it was delayed due to political shenanigans. I want to assure you that the government will ensure it is implemented. It is commendable that you, coming from Tanzania, are going to make this huge investment in our country,” Ruto said.

He added that when he met Rostam, he assured him that the government will implement the project within 90 days, stating that the era of mistrust in East Africa “is behind us.” “We cannot compete for investors from Europe, America, or Asia. Investors can be Kenyans, Tanzanians, and Ugandans; that’s the future.” Ruto said.

“When I met Samia, we agreed that we were going to eliminate all mistrust, barriers, and roadblocks between our countries. Take my message to Samia: Kenya is open for business. I appreciate that every time I send investors to Kenya, she gives them personal support. I will reciprocate.”

At the launch event of what was initially a $130 million facility but has now been adjusted to close to $200 million on the request of the Kenyan government, Rostam Aziz, who is the chairman of Taifa Gas, said this is the largest Tanzanian investment in Kenya since the collapse of the East African Community. With the EAC having a GDP of over $300 billion and a market of over 180 million people, Rostam said that “Tanzania and Kenya are the only EAC states with access to global maritime routes. Developing trade and making it affordable will help scale growth.”

With Rostam’s Taifa Gas investment stalling for over five years, the tycoon said that the road has not been easy. “And like yourself (President Ruto), we have had to hustle to get to this stage. But also like yourself, we will build from the bottom up.”

Rostam then took a moment to address a matter that, in his opinion, has derailed growth between Tanzania and Kenya for years.

“It’s easier importing from China and India than from Kenya and Uganda,” he lamented, questioning why East Africa and Africa as a whole choose to trade more with other continents. Rostam also shared that there have been long-time sentiments of dissatisfaction when it comes to Tanzanians being given an opportunity to invest in Kenya or getting jobs.

“We are all brothers and sisters. When you go to a household in Mombasa, you are likely to find a Tanzanian; same thing when you go to Tanga or Zanzibar; you are likely to find a Kenyan as part of the family,” he said, advising that these close ties need to be used to grow economies.

“Unfortunately, we value Western partners more than our own in East Africa and Africa. There is a lot of mistrust and fear among ourselves instead of building together,” he said.

As a sign of optimism, Rostam said that in a very short time since assuming office, Ruto has addressed these sentiments of mistrust with actions. “I ask you and your fellow presidents (Samia, Museveni, and Kagame) to sit down and discuss trade barriers. We need to acknowledge that the world will not wait for us. Let’s open our trade doors,” he said.

Tanzania’s ambassador to Kenya, John Simbachawene, said that the investment is not only a positive business move but will enhance cooperation in the EAC. “Relations between Tanzania and Kenya are at their best in years,” he said.

Kenya’s cabinet secretary for investment, trade, and industry, Moses Kuria, said that they had initially planned to unveil Taifa Gas in April this year, “but I’m glad we managed to do it with 40 days to spare. This expedited process shows willingness to work for development,” he said, adding that “our presidents (of Kenya and Tanzania) said they don’t want one border post but zero border posts.”

About Taifa Gas investment in Mombasa

By February 2023, Taifa Gas had been registered and licensed as an investment company known as Taifa Gas SEZ Investment Company Limited and allocated 30 acres of land for investment by the Kenyan government.

The project will take 15 months to complete and is expected to add at least 90,000 jobs in Kenya.

Also, with a capacity of 30,000 million tons (MT) of gas storage and distribution, the project will be Taifa Gas’ largest in East Africa. However, Ruto has requested that Taifa Gas increase capacity to 45,000MT, making it the largest in Africa.

It will serve the Kenyan, Ethiopian, Ugandan, and potentially Somalian markets, while Tanzania will serve Zambia, the DR Congo, Malawi, and other southern African countries.