Why Kenya Should Quit The East African Customs Union

For a number of years now, valuable Kenyan taxpayers' money has been going to an organization that is yet to yield any tangible benefits for Kenyans. In fact insiders point to several problems that suggest that the much hyped-about East African Community is a non-starter and is unlikely to yield anything but unnecessary headaches for Kenyans.

The major problem is one partner state in the union. Namely, Tanzania.

Tanzanians are not interested in regional integration. And even where they may be paying lip service to it, their eyes are sharply focused on their own self-interest first, which is hardly the sort of spirit that augurs well for any union. Try going into a marriage where your partner is after their own interests only.

Major reforms have been going on in that country since the retirement of founding father Mwalimu Julius Nyerere. These reforms have opened up the economy to foreign investors who have been pouring into the country in large numbers.

Ironically Kenya is by far the largest African investor in Tanzania and is in the "big two" with Britain when you consider all countries of the world. Over 200 Kenyan companies have invested in the country with a total investment well in excess of US$ 350 million. The investments have created about 40,000 jobs. There is no difference between the way an investor from America or Britain is treated and the way a Kenyan investor is handled. If anything the American is more favored. So there is really no benefit of Kenya being part of the East African Customs Union.

Unfortunately the local Tanzanian labor force is not capable of sustaining this growth that has been triggered mainly by foreign investments. The country's human resources lack skills, experience and even the right attitude to work. The result is that many Kenyans lacking opportunities back home have poured into the country in search of employment where they are deeply resented and regularly harassed by immigration officials who routinely throw them into jail "for being in the country illegally."

This is one of the reasons why Tanzanians are terrified about the proposal by the Customs Union for free movement of labour. Even if Arusha manages to pass it, this is one thing Tanzanians will resist with all they have, right to the end.

Meanwhile Kenyan goods entering Tanzania are taxed, despite the fact that Tnzanian exports to Kenya are not. Then there are regular taxes and new so-called "work permit" fees that are routinely introduced at the borders which mainly target Kenyans.

You may be reading this and getting puzzled because Tanzanians are known to be very polite people and many of them have been singing the praises of the Customs union and the coming political federation. Welcome to the Tanzanian art of deception and hypocrisy where you say one thing but mean the exact opposite.

Besides Tanzanians have too many problems of their own at the moment to be serious partners in any integration efforts.

The best thing the Kenyan government should do now is to withdraw from the Customs Union, citing massive breach of contract. Let us start charging duty again on Tanzanian imports, and let any Kenyans who want to venture into that country do so with the clear understanding that they are going into a very "foreign" country at their own risk, without having the illusion of a non-existent Union or East African Community.

Let us give Tanzanians time to sort out their very long list of issues. Including the fact that they don't like to work, they prefer to sit around complaining about foreigners. Then they invite South Africans to rob them blind in industries like mining but look at their neighbors, Kenya (many of whom have married their sons and daughter) suspiciously (or is it with envy?).

Maybe in the future after another 20 to 30 years of dilly-dallying and "jogging round in circles on the same spot", like they have been doing all along, Tanzanians may finally see the benefits of integration. But for now Kenyans will be much better off spending their hard-earned resources elsewhere. There is really no point in flogging a dead horse, is there?

Here is a perfect example of how Tanzanians speak eloquently in support of the EAC at Arusha and then do something very different on the ground. Read this story from the latest issue of the respected EastAfrican for yourself.

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Another blogger complains about Tanzania.

Do you want to get the Younger Generation in Kenya into power in 2007?

Calling all Kenyan bloggers, your country needs you.

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