Ethiopia and Kenya have jointly agreed to open their borders under a new arrangement that allows small-scale traders to move goods worth up to Ksh129,300 ($1,000) per trip, up to four times a month.
The agreement, reached during the 3rd Bilateral Trade Meeting on the Simplified Trade Regime (STR) held in Mombasa on April 17, 2025, is expected to ease movement for informal traders and border communities that have long faced restrictions, delays, and high compliance costs.
Additionally, Kenya and Ethiopia have agreed on new border trade guidelines aimed at streamlining small-scale commerce between communities near the shared boundary.
The meeting was co-chaired by Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui, and the Minister of Trade and Regional Integration of the Federal Democratic Republic of Ethiopia Dr. Kassahun Gofe.
“In attendance were Senior Government Officials from the Ministry of Trade and Regional integration, and relevant stakeholders from Federal Democratic Republic of Ethiopia, while Kenyan delegation was composed of officials from Ministries, Departments, and Agencies as well as a representative from the private sector,” the communiqué read in part.
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Details of the Agreement between Kenya and Ethiopia
According to the joint communiqué, Ethiopia’s border area has been defined as 50 kilometers from the common border, while Kenya’s side extends up to 100 kilometers.
The move is expected to significantly ease movement for informal traders and border communities that have faced restrictions, delays, and high compliance costs.
Additionally, it reflects each country’s approach to managing informal trade zones while maximizing the economic potential of communities that rely on daily cross-border exchanges.
“The meeting considered the key outstanding issues which include: Areas of Border Trade, Trading Threshold, Travel Frequency and the Common List of Products,” added the statement.
Moreover, the new $1,000 threshold, agreed upon by both countries, is aimed at streamlining cross-border business by reducing the paperwork and taxes previously associated with small-scale trade.
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Common Products Eligible Under the Agreement
Both governments have also agreed on a common list of products eligible under the STR framework.
The list includes essential goods frequently traded between the two countries, ranging from agricultural produce to household items.
In addition, Kenya and Ethiopia committed to fast-tracking a Memorandum of Understanding (MoU) to align the STR with the broader goals of the African Continental Free Trade Area (AfCFTA).
“Further, the meeting agreed to collaborate on the implementation of the African Continental Free Trade Area. Both parties agreed to develop a Memorandum of Understanding to fast-track the implementation of the African Continental Free Trade Area between the Republic of Kenya and the Federal Democratic Republic of Ethiopia.
“The Ethiopian side agreed to initiate and exchange the draft instrument,” added the statement.
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