Kenya and Uganda Eliminate Tariffs and Trade Barriers to Boost Cross-Border Commerce
Historic Agreement Aims to Streamline Trade and Reduce Border Congestion
Kenya and Uganda have officially removed tariffs, excise duties, and non-tariff barriers (NTBs) on goods exchanged between the two countries, marking a significant milestone expected to enhance bilateral trade and resolve persistent border disputes. Under the new arrangement, all products originating from either nation will be exempt from discriminatory charges, effectively treating cross-border transfers as domestic trade.
The announcement was made on August 30 during a ministerial meeting held in Mbale City, co-chaired by Kenya’s Cabinet Secretary for Trade, Lee Kinyanjui, and Uganda’s Minister of Trade, Francis Mwebesa. A joint communiqué issued by both governments confirmed their commitment to fully implement East African Community (EAC) trade protocols by eliminating existing tariffs and NTBs.
Measures to Alleviate Border Congestion
In addition to tariff removal, the agreement sets strict limits on traffic congestion at key border points. At the Malaba crossing, vehicle queues will be restricted to a maximum of four kilometers, while at Busia, the cap is set at 500 meters. Both border posts are mandated to clear any backlog within 24 hours to facilitate smoother transit.
Uganda has pledged to expedite operations at the Malaba weighbridge, a known bottleneck for freight transport. Furthermore, border agencies on both sides will operate around the clock and reduce the number of checkpoints that impede cargo flow.
“Delays and bottlenecks have imposed significant costs on traders. We are committed to ensuring goods move swiftly without unnecessary obstacles,” stated CS Lee Kinyanjui.
Infrastructure Enhancements to Support Trade Efficiency
The pact also prioritizes infrastructure improvements aimed at boosting trade efficiency. Key projects include:
- Completion of the Suam One Stop Border Post (OSBP)
- Upgrading roads and bridges along major trade corridors
- Installation of a cargo scanner at the Lwakhakha border on the Kenyan side
These developments are expected to shorten clearance times and facilitate faster movement of goods along one of East Africa’s busiest trade routes.
Strengthening Oversight and Private Sector Engagement
To guarantee effective implementation, the ministers directed the activation of Joint Border Committees (JBCs) tasked with resolving daily operational challenges. Issues that remain unresolved will be escalated to higher authorities. Additionally, a standing joint technical committee will oversee the enforcement of commitments and address emerging trade barriers.
Minister Mwebesa emphasized the importance of ongoing collaboration with the private sector, noting, “Continuous dialogue with businesses will ensure trade facilitation measures meet actual market demands.”
Beneficiaries and Regional Impact
The agreement is poised to benefit traders, manufacturers, and transport operators who depend on the Kenya-Uganda corridor by reducing costs and improving efficiency. With tariffs abolished, border delays minimized, and infrastructure projects underway, the deal is expected to deepen regional integration and stimulate economic growth.
“The two governments are resolute in dismantling long-standing obstacles that have hindered trade and in promoting the seamless flow of goods between Kenya and Uganda,” the ministers affirmed.
