Kenya and Tanzania are intensifying a quiet contest to position themselves as East Africa’s preferred trade and logistics hub, investing heavily in ports, railways and energy infrastructure aimed at serving regional markets. While rivalry could boost connectivity, efficiency and investment, analysts warn that competition not anchored in industrialisation and regional integration risks creating costly duplication and undermining cooperation.
First, it was their ports, Mombasa and Dar es Salaam, where each has tried to improve efficiency to attract more regional business. Then it came to the standard gauge railway (SGR), with each country working hard to ensure their lines reach the next-door neighbour. The latest bid involves seeking to become the oil hub of the region, with Kenya’s Lamu port area and Tanzania’s Tanga set to become hot rivals in oil refinery and exportation.
