NAIROBI/DAR ES SALAAM — August 22, 2026: Kenya and Tanzania are intensifying a strategic competition to become East Africa’s dominant gateway for trade, logistics and energy, as both countries invest heavily in ports, railways, oil infrastructure and regional transport corridors.
The rivalry is increasingly focused on serving landlocked countries whose economies depend on efficient access to seaports. Uganda, Rwanda, Burundi, Zambia, Malawi and the Democratic Republic of Congo are among the markets that could benefit from expanded transport options and greater competition between the two corridors.
Kenya is seeking to strengthen the position of Mombasa and Lamu as major regional logistics and energy centres. Mombasa remains one of the region’s busiest ports, handling about 45 million tonnes of cargo in 2025, according to the figures cited in the report.
Lamu is also being promoted as a potential alternative gateway for oil exports and regional cargo, supported by Kenya’s wider plans to develop transport and energy infrastructure along the northern corridor.
Tanzania, meanwhile, is expanding the role of Dar es Salaam and Tanga, seeking to attract cargo and energy-related business from neighbouring countries. Dar es Salaam handled about 27 million tonnes of cargo in 2025, while Tanga is being positioned as an emerging petroleum and energy hub.
Tanzania’s plans include petroleum storage facilities, pipelines, marine infrastructure and other energy projects. The country is also seeking to deepen economic and transport cooperation with Uganda and the Democratic Republic of Congo as it expands its regional corridors.
President Samia Suluhu Hassan has placed greater emphasis on regional economic engagement, particularly with neighbouring countries that could use Tanzania’s ports and transport networks to access international markets.
Railway expansion
Railway infrastructure has become another major element of the competition.
Kenya is extending its Standard Gauge Railway (SGR) network toward Kisumu and Malaba, with the longer-term objective of improving connections to Uganda and the wider East African market.
Tanzania is pursuing an even broader westward expansion of its SGR network toward Kigoma, potentially strengthening links with Burundi, Rwanda and the Democratic Republic of Congo. Planned and proposed connections could also improve access to Zambia and Malawi.
The two competing transport corridors could give landlocked economies greater flexibility in choosing where to import and export goods.
Competition brings opportunities — and risks
Analysts say competition between Kenya and Tanzania could benefit the wider region if it results in lower transport costs, faster cargo movement and better infrastructure.
However, they caution that large infrastructure projects alone will not determine which country emerges as the region’s principal gateway.
Industrial development, reliable electricity, efficient customs systems, political stability, cross-border cooperation and stronger regional economic integration will also be crucial.
There are also concerns over the financial sustainability of major infrastructure projects. Heavy borrowing, weak project management or duplication of infrastructure could increase debt burdens without generating sufficient economic returns.
For East Africa’s landlocked economies, the rivalry could ultimately provide more choices and reduce dependence on a single transport corridor.
The competition also reflects a broader struggle for regional economic influence, with Kenya and Tanzania seeking to position their ports, railways and energy networks at the centre of East Africa’s rapidly expanding trade system.
