The start of a two-day state visit by Tanzanian President Samia Suluhu, who is in the country at the invitation of President Uhuru Kenyatta has opened up a new chapter in the relationship between Kenya and the neighboring Tanzania.
Suluhu’s visit marks a turning point in the diplomatic relations between the two countries. Uhuru said they agreed to improve ties in trade, infrastructure, transport, tourism, culture and security, speaking at the State House in Nairobi earlier yesterday.
What does it mean for real estate?
President Kenyatta said they had instructed senior government officials from both countries to constantly engage each other to strengthen the ties.
“We have instructed our ministers to be meeting from time to time to resolve small issues that cause problems for the two countries. We want to make everything easy for us,” he said.
Experts now believe that the successful conclusion of a trade deal will drive new demand for a wide range of property types including offices, business parks and senior housing.
Suluhu said there are 513 huge Kenyan investments in Tanzania worth US$1.7 billion (Sh170 billion), employing some 51,000 Tanzanians.
“There are 30 Tanzanian companies which have invested Sh19 billion in Kenya employing some 2,600 people. I promise that we will invest more in Kenya to increase the volume of trade,” she noted.
This will result in stronger property leasing demand, particularly in the office, vacation and industrial sectors, while prompting many foreign investors to review their Kenya strategy.