President Uhuru Kenyatta's decision to initiate talks that will lead to improved relations with Tanzania is expected to boost manufacturing and turn around Kenyan exports to the neighbouring country.
President Kenyatta approached his Tanzanian counterpart, John Magufuli, during last week's heads of state retreat in Kampala and convinced him to repair the decades-old cold relations between the two countries for the benefit of the people.
Magufuli agreed and the two asked their respective ministers to iron out any issues affecting the two countries.
With Kenya likely to step up the manufacturing of quality goods locally, which is one of President Kenyatta's Big Four Agenda for the next five years, the improved trade relations with the southern neighbour will see Kenya exporting more and improving in the foreign exchange by closing the trade deficit.
The latest data from the Central Bank of Kenya show that Kenya buys more goods from Tanzania despite the restrained trade relations. Between January to October last year, imports from Tanzania increased by 25% to Sh13 billion.
Because of the unresolved trade issues, Kenya's exports to Tanzania hit a 10-year record low, dropping by 18% to Sh23 billion. This shows that with a repaired relationship, Kenya is set to be the winner in the trade deals.
Tanzania's estimated population of 56 million people will be a key target market for the surging manufacturing sector here in Kenya. This will, in turn, create millions of jobs for Kenyans.