Talks between Tanzanian President Samia Suluhu Hassan and President William Ruto have accelerated two multi-billion projects at the Coast meant to boost trade between the two nations.
President Ruto this week committed to continue implementing the strategic bilateral projects, including fast-tracking construction of the natural gas pipeline from Dar es Salaam to Mombasa, and that of the East African coastal corridor project road connecting Bagamoyo to Malindi in Kenya.
Already, the Sh75.1 billion Bagamoyo-Malindi road project has begun with several kilometres already done as the Energy and Petroleum Regulatory Authority (EPRA) revealed that it is considering giving a licence to Tanzanian firm Taifa Gas Investment to construct a liquefied petroleum gas (LPG) import and storage terminal in Mombasa.
The Kenyan government has officially begun the process of constructing its part of the 460km Coastline Transnational Highway in Kilifi County, a project which was initiated by the previous government.
Kenya National Highway Authority (Kenha) confirmed Phase 1 of the project between Malindi and Kilifi is ongoing and they are committed to ensure the project is completed as scheduled.
The Mtwapa-Kilifi Road project, which is part of the Bagamoyo (in Tanzania)–Lunga Lunga–Mombasa–Malindi Road, is being implemented in partnership with the African Development Bank (AfDB), African Development Fund (AFD), and the European Union (EU).
According to the KeNHA, the project entails the construction of a four-lane dual carriageway, construction of a grade-separated junction, service roads, stormwater drains, major and minor drainage structures, access roads and social amenities along the road.
AfDB is financing 70 per cent of the coastal highway while the governments of Kenya and Tanzania will cover the remaining 30 per cent.
“We will expedite the gas pipeline from Dar es Salaam to Mombasa and eventually to Nairobi so that we can use the resources that we have to lower energy tariffs both for commercial and domestic use in Kenya,” Mr Ruto said in a joint briefing with Ms Suluhu.
The construction of the pipeline, on the other hand, by Tanzanian business magnate Rostam Aziz is expected to trigger a fierce price war between Taifa Gas and Kenyan players given that its prices are lower.
The businessman is setting up a 2,500 metric tonnes (MT) plant, a bullet tank of 200 MT and several gas storage facility at Dongo Kundu next to Mombasa port.
Kenyan government has already given Taifa Gas company a site and the Impact Assessment Study Report is expected to be released after public participation.
Kenya imports about 40 per cent of gas annually from Tanzania via the Namanga and Holili border posts and the remainder is imported through the Port of Mombasa.
