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Kenya and Uganda take steps to eliminate border tariffs, boosting trade between the two nations.

Uganda leads as Kenya's primary trade ally, with exports totaling Sh125.9 billion.

Removal of Cross-border Tariffs Bolsters Trade Between Kenya and Uganda
Removal of Cross-border Tariffs Bolsters Trade Between Kenya and Uganda

Kenya and Uganda take steps to eliminate border tariffs, boosting trade between the two nations.

In a joint effort to boost trade between the two countries, the ministers of trade from Kenya and Uganda have issued a communique detailing expected changes following directives from Presidents William Ruto and Yoweri Museveni. The communique aims to resolve trade barriers and improve the efficiency of border crossings.

The communique, issued on August 30, 2025, highlights several key points. The ministers are committed to eliminating all existing tariffs and non-tariff barriers (NTBs) hindering trade between Kenya and Uganda. To achieve this, both countries will operationalize joint border committees to resolve operational challenges and escalate unresolved matters to higher authorities.

One of the main areas of focus is the Busia border, where congestion is to be maintained at no more than 500 meters. Similarly, on the Malaba border, the congestion is to be cleared within 24 hours and maintained at no more than four kilometers. Uganda has committed to addressing issues related to operations along the Malaba major trade corridor to facilitate faster movement of goods.

In addition, Kenya has committed to acquiring a scanner for border infrastructure upgrades. The Suam and Lwakhakha borders are among the infrastructure projects earmarked for completion. Both countries will work together to prioritize the completion of key infrastructure projects, including border posts, roads, and bridges to aid the movement of goods and people.

The communique does not mention any new figures for trade between Kenya and Uganda. However, it is known that Uganda is Kenya's top trading partner, with Kenya exporting goods worth Sh125.9 billion to Uganda in 2024. In the same period, Kenya imported goods worth Sh37.7 billion from Uganda.

The recommendations for classifying the movement of goods across the two countries came from a meeting held on August 29-30, 2025. The ministers also agreed to remove all discriminatory excise duties, levies, and other charges of equivalent effects. Movement of goods between Kenya and Uganda will now be treated as transfers, eliminating tariffs associated with trade at all border points.

Prior to this communique, a technical meeting was held to assess operations at the borders of Suam, Busia, Malaba, and Lwakhakha to find causes of delays and congestion and make recommendations for resolving barriers. A side meeting was also held on July 31, 2025, in Nairobi, where the ministers, Lee Kinyajui (Kenya) and Wilson Mbasu Mbadi (Uganda), agreed to exchange lists of products affected by non-tariff barriers and to hold a technical meeting in Mbale, Uganda, from August 18 -22, 2025.

In the East African Community (EAC) market, Kenya imported the most from Tanzania, valued at Sh58.7 billion in 2024. The streamlining of trade between Kenya and Uganda is expected to have a significant impact on the overall trade within the EAC.

The ministers have taken a significant step towards improving trade relations between Kenya and Uganda. The implementation of these changes is expected to lead to increased efficiency at the borders, reduced congestion, and improved trade between the two countries.

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