Kenya and Uganda have moved to end years of trade disputes by agreeing to drop tariffs and non-tariff barriers that have been choking the flow of goods between the two countries.
The deal is the result of a directive issued in July by Presidents William Ruto and Yoweri Museveni, who tasked their trade ministers with finding immediate solutions to border congestion and the constant wrangles over duties.
Following the presidential push, Uganda’s Trade, Industry and Cooperatives Minister Wilson Mbadi and Kenya’s Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui met in Nairobi on July 31. They exchanged lists of products restricted by non-tariff barriers, which were later scrutinised during a technical meeting in Mbale, Uganda, between August 18 and 22.
Their teams visited Suam, Busia, Malaba and Lwakhakha border posts to identify causes of delays. The findings were presented at a joint ministerial meeting held on August 29 and 30.
The outcome was a package of measures meant to unclog the borders. Goods from either country will now be treated as transfers, not imports. Discriminatory excise duties and levies will be scrapped. Border agencies were instructed to work around the clock and to cut congestion immediately.
At Malaba, truck queues should not exceed four kilometres, while at Busia, traffic must be held at less than 500 metres. Uganda also promised to sort out problems at the Malaba weighbridge, which traders have long blamed for frustrating cargo clearance.
“Ministers directed border agencies to immediately address delays relating to multiple checkpoints…border management agencies to ensure 24/7-hour operations of their respective functions,” part of a joint statement released read.
The two governments also pledged to fast-track infrastructure upgrades. Kenya will complete the Suam One Stop Border Post and install a cargo scanner at Lwakhakha. Both sides will mobilise funds for better roads and bridges.
“Both ministers committed to prioritise and mobilise resources for critical border infrastructure, including road upgrades and bridge construction,” the statement read in part.
Joint Border Committees will be activated to resolve day-to-day problems, while a permanent technical committee will monitor compliance and address new disputes. Private sector players will also be consulted regularly to ensure the reforms are in line with business needs.
Uganda is Kenya’s top trading partner in the region and the largest user of the Port of Mombasa. Last year, Uganda accounted for 65.6 per cent of transit volumes through the port, up from 62.3 per cent in 2023. Exports to Uganda dipped slightly to Ksh 125.9 billion from Ksh 126.3 billion, driven by weaker sales of cement clinker and palm oil. Imports dropped to Ksh 37.7 billion from Ksh 41.2 billion.
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