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Trade Triumph: Kenya and Uganda Forge Path to Tariff-Free Future!

Published 6 days ago3 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Trade Triumph: Kenya and Uganda Forge Path to Tariff-Free Future!

Kenya and Uganda have embarked on a significant initiative to eliminate all tariff and non-tariff barriers (NTBs) hindering trade between the two East African nations. This commitment stems from directives issued by President William Ruto of Kenya and his Ugandan counterpart, Yoweri Museveni, during bilateral meetings held in Nairobi between July 30 and 31, 2025. The overarching goal is to foster stronger bilateral relations, boost trade, and enhance regional integration within the East African Community (EAC).

Following the presidential mandate, the respective ministers of trade – Kenya's Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, and Uganda's Minister for Trade, Gen. Wilson Mbasu Mbadi – convened a sideline meeting on July 31, 2025, in Nairobi. During this meeting, they agreed to classify the movement of goods between Kenya and Uganda as 'transfers,' effectively eliminating all associated tariffs and discriminatory excise duties, levies, and other charges of equivalent effects. This pivotal decision aims to streamline cross-border commerce significantly.

To address the persistent challenge of non-tariff barriers, the ministers committed to exchanging comprehensive lists of all products affected by such impediments. Subsequently, a technical meeting was scheduled to take place in Mbale, Uganda, from August 18-22, 2025. During this period, technical officers from both nations conducted on-site assessments of 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 during a follow-up meeting on August 29-30, 2025, which solidified the recommendations for the 'transfers' classification.

Beyond policy changes, both governments are prioritizing the completion and upgrade of critical infrastructure projects. This includes developing border posts, improving road networks, and constructing bridges to facilitate the seamless movement of goods and people. Specifically, Kenya has committed to acquiring a scanner to enhance efficiency, while joint efforts are underway to complete construction works at border points like Suam and Lwakhakha. Furthermore, Uganda has pledged to immediately address operational issues related to the Malaba weighbridge, a major trade corridor.

Addressing border congestion, the ministers issued strict directives to border management agencies. For the Malaba border, agencies were instructed to clear truck congestion within 24 hours and maintain queues at no more than four kilometers. Similarly, at the Busia border, congestion is to be reduced and maintained at not more than 500 meters. Both countries committed to ensuring 24/7 operations of their respective functions at border points, further expediting trade flows. To resolve ongoing operational challenges and escalate unresolved matters, the ministers directed that joint border committees be fully operationalized.

This renewed commitment holds significant implications for the region. Uganda remains Kenya’s top trading partner, with Kenya exporting goods worth Sh125.9 billion to Uganda in 2024, the highest among EAC States and individual African countries. In the same period, Kenya imported goods valued at Sh37.7 billion from Uganda. CS Kinyanjui articulated the sentiment, stating, “The commitment by our two governments is to eliminate unnecessary restrictions and unlock the full potential of trade between Kenya and Uganda. This is a win for businesses and citizens on both sides.” Gen. Mbasu echoed this, declaring that the resolution signals a new chapter in bilateral cooperation, aimed at strengthening the EAC and creating opportunities for all citizens by ensuring trade is not hindered by artificial barriers.

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