Tanzania has agreed to remove a 25 percent duty on Kenyan lubricants and textiles ending a trade dispute that has rocked the two countries.
Trade Principal Secretary Dr. Chris Kiptoo has said Kenya and Tanzania have agreed to form a joint trade team to deal with any trade disputes between the two nations.
Trade relations between Nairobi and Dar-es Salaam have been frosty in the last five years, with Kenya accusing Tanzania of stoking trade disputes by imposing high tariffs on Kenyan goods.
This has forced leaders from the two nations to meet in Nairobi in a bid to deal with the stalemate.
East African Affairs Principal Secretary Susan Koech says Tanzania has agreed to allow Kenyan textiles and lubricants to access her market duty free.
The Kenya Association of Manufacturers and the Kenya Private Sector Alliance had raised concern after Tanzania imposed a 25 percent duty on the two products in a bid to protect her industries.
The PS has also said the two nations have established a joint working committee to look into all trade disputes pitting the two nations.
East Africa heads of state are expected to meet next week in Arusha and recurring trade rows within the region are expected to be discussed.
Kenya will host the annual regional SMEs fair in Eldoret where business people from the five East African nations will showcase their crafts.