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Cross-Border Breakthrough: Kenya & Uganda Smash Trade Barriers, Ushering New Economic Era

Published 6 days ago3 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Cross-Border Breakthrough: Kenya & Uganda Smash Trade Barriers, Ushering New Economic Era

Kenya and Uganda have embarked on a significant initiative to eliminate all tariffs and non-tariff barriers (NTBs) hindering trade between the two East African Community (EAC) member states. This strategic move follows a directive from Kenyan President William Ruto and his Ugandan counterpart Yoweri Museveni during an official visit by President Museveni to Kenya from July 30 to July 31, 2025, aimed at strengthening bilateral relations and fostering greater economic cooperation.

Following the presidential directive, the respective ministers of trade, Lee Kinyajui of Kenya and Wilson Mbasu Mbadi of Uganda, convened a sideline meeting in Nairobi on July 31, 2025. They subsequently held a technical meeting in Mbale, Uganda, from August 18 to August 22, 2025. During this period, technical officers thoroughly assessed operations at key border points, including Suam, Busia, Malaba, and Lwakhakha, to identify causes of delays and congestion. Their findings and recommendations were then presented to the ministers at a subsequent meeting on August 29-30, 2025. A core outcome of these discussions was the groundbreaking agreement that all products originating between Kenya and Uganda will now be treated as transfers, effectively eliminating associated tariffs at all border points. Furthermore, the ministers committed to removing all discriminatory excise duties, levies, and other charges of equivalent effect, aligning fully with the EAC Treaty and Protocols.

Beyond tariff removal, both governments have prioritized the completion of vital infrastructure projects to enhance the movement of goods and people. This includes upgrading border posts, roads, and bridges. Specifically, construction works at the Suam and Lwakhakha borders are earmarked for completion, and Kenya has committed to acquiring a scanner to streamline operations. Uganda, for its part, has pledged to immediately address issues related to the operations of the Malaba weighbridge, a crucial step in facilitating faster trade along this major corridor. Joint border committees are also being operationalized to resolve operational challenges and escalate unresolved matters to higher authorities.

Addressing chronic border congestion was another critical area of focus. Ministers directed border management agencies to clear truck congestion at the Malaba border within 24 hours, maintaining a maximum queue of four kilometers, and at the Busia border, congestion is to be kept at not more than 500 meters. These agencies were also instructed to ensure 24/7 hour operations of their respective functions to prevent future bottlenecks. These measures are designed to significantly reduce delays caused by multiple checkpoints and enhance overall trade efficiency.

The emphasis on trade facilitation is particularly significant given that Uganda is Kenya’s top trading partner. In 2024, Kenya's exports to Uganda reached Sh125.9 billion, the highest among all EAC states and individual African countries. In the same period, Kenya imported goods worth Sh37.7 billion from Uganda. Despite this robust economic relationship, trade relations have historically been strained by recurrent disputes over customs delays, restrictions on agricultural goods, and complex licensing requirements. The latest agreements aim to mitigate these long-standing issues.

Kenyan Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, highlighted the commitment's importance, stating,

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