Boost for Traders as Kenya and Uganda Agree to Scrap Cross-Border Taxes

Kenya and Uganda have scrapped tariffs, excise duties, and non-tariff barriers (NTBs) on goods traded between them in a new deal expected to transform cross-border commerce and ease long-standing disputes.

The decision means all products originating in either country will now be treated as transfers, exempt from discriminatory charges.

According to a joint communique by Ministers from both countries, this commitment was announced on August 30 at a ministerial meeting in Mbale City, led by Kenya’s Trade Cabinet Secretary, Lee Kinyanjui, and Uganda’s Trade Minister, Francis Mwebesa.

“Both governments have agreed to fully remove existing tariffs and NTBs and implement all East African Community (EAC) trade commitments,” the joint communiqué read in part.

Decongesting Border Points as a trade deal

Alongside tariff removal, the ministers issued tough directives regarding congestion at the Malaba and Busia border posts.

At Malaba, traffic queues will be capped at four kilometres, while in Busia the limit will be 500 metres. Both posts must clear all backlogs within 24 hours.

Uganda also committed to immediately streamlining operations at the Malaba weighbridge, which has been a major source of delays for truck drivers.

The deal also requires border agencies to operate 24/7 and reduce the number of checkpoints that slow down cargo movement.

“The delays and bottlenecks have been costly for traders. We are determined to ensure goods move faster and without unnecessary hurdles,” said CS Kinyanjui.

Infrastructure Upgrades

The agreement also prioritises infrastructure development to improve efficiency. The two governments pledged to:

• Complete the Suam One Stop Border Post (OSBP).
• Upgrade roads and bridges along key trade corridors.
• Install a cargo scanner at the Lwakhakha border on the Kenyan side.

Also Read: Warning Issued After Ruto’s Letter on Tanzania Trade Ban

These upgrades are expected to cut clearance times and support faster cargo movement across the busiest trade corridor in East Africa.

Oversight and Private Sector Dialogue

To ensure accountability, the ministers ordered the operationalisation of Joint Border Committees (JBCs) to address daily challenges, with unresolved cases escalated to higher authorities.

A standing joint technical committee will monitor implementation of the commitments and handle emerging barriers.

Private sector input was also placed at the centre of the deal. “Continuous dialogue with businesses will ensure trade facilitation measures align with real market needs,” Minister Mwebesa emphasised.

Beneficiaries of the Deal

Traders, manufacturers, and truck drivers who rely on the Kenya–Uganda corridor are the biggest winners once the changes are implemented.

Also Read: EAC Unveils New Plan to Slash Border Costs for Traders: How It Will Work

With tariffs scrapped, border delays reduced, and infrastructure projects prioritised, the deal is set to lower costs, improve efficiency, and deepen regional integration.

“The two governments are determined to end long-standing barriers that have hampered trade and ensure the smooth flow of goods between Kenya and Uganda,” the ministers affirmed.

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