Kenya and Uganda have formally agreed to eliminate all tariff and non-tariff barriers (NTBs) hindering bilateral trade, aligning their commitments with the East African Community (EAC) Treaty and protocols.
The move is expected to unlock billions in cross-border commerce and ease long-standing logistical bottlenecks.
Border Congestion Targeted
In a joint communiqué issued after a ministerial meeting in Mbale City on August 30, Trade Cabinet Secretary Lee Kinyanjui and Uganda’s Trade Minister General Wilson Mbasu pledged to decongest key border points—including Malaba, Busia, Suam, and Lwakhakha—within 24 hours.
“It is a serious concern to receive numerous complaints affecting business at the border points. We are committed to restoring normalcy at all cross-border points,” said CS Kinyanjui.
Border agencies were directed to maintain a maximum queue of four kilometres at Malaba and 500 metres at Busia while ensuring 24/7 operations. Uganda also committed to resolving delays at the Malaba weighbridge to facilitate faster movement of goods.
Infrastructure and Policy Overhaul
Both governments pledged to mobilise resources for critical infrastructure upgrades, including
- Completion of the Suam One Stop Border Post (Kenya side)
- Acquisition of a scanner for Lwakhakha
- Road and bridge improvements along major trade corridors
Joint Border Committees will be operationalised to resolve daily challenges, while a standing technical committee will monitor and eliminate emerging trade barriers.
“Kenya and Uganda reached a joint agreement to remove the trade barriers and ease the movement of goods and people across their borders, in line with the East African Community (EAC) Treaties and Protocols,” said Kinyanjui.
Goods Reclassified as Transfers
In a major policy shift, all goods originating from Kenya and Uganda will now be treated as “transfers,” effectively ending double taxation and discriminatory excise duties.
“The ministers agreed to remove all discriminatory excise duties, levies and other charges of equivalent effects,” read the joint statement.
Kenya–Uganda Trade Data: A Strategic Relationship
According to the Kenya National Bureau of Statistics (KNBS), Uganda remains Kenya’s top regional trading partner:
- Kenya’s exports to Uganda in 2025: KSh 40.89 billion
- 2024 exports: KSh 38.56 billion
- Top exports: Cement, mineral fuels, iron and steel, pharmaceuticals, and edible oils
“Uganda has consistently been a major trade partner for Kenya, and the latest figures confirm the ongoing importance of this relationship,” KNBS noted in its July 2025 release.
This upward trend underscores the urgency of removing trade barriers and enhancing infrastructure to sustain momentum.
Today, with Uganda’s Minister for Trade, Industry and Cooperatives, Hon. Gen. Wilson Mbadi, we issued a joint communiqué on resolved trade barriers between Kenya and Uganda.
Kenya and Uganda reached a joint agreement to remove the trade barriers and ease the movement of goods… pic.twitter.com/tzuG85mO8s
— Hon Lee Kinyanjui (@GovLeeKinyanjui) August 30, 2025
Tanzania’s Restrictions Raise EAC Concerns
The Kenya–Uganda breakthrough comes amid rising tensions within the EAC, following Tanzania’s July directive banning foreigners—including Kenyans and Ugandans—from operating businesses in 15 sectors. These include retail, mobile money, phone repair, salons, clearing and forwarding, and tour guiding.
The East Africa Law Society (EALS) condemned the move, calling it “a violation of the EAC spirit” and urging its reversal.
Kinyanjui hinted at possible retaliatory measures, stating that Kenya would “explore all options” to protect its citizens and businesses.
Tanzania Introduces $90 Travel Tax for International Passengers Starting November 2025
