Uganda, Kenya move to remove all trade barriers, ease border congestion

Uganda and Kenya have reached a landmark agreement to eliminate all tariff and non-tariff barriers hindering cross-border trade, in a move expected to ease long-standing frustrations for traders and boost economic cooperation between the two neighbours.

The agreement was sealed during a bilateral ministerial meeting between Gen. Wilson Mbasu Mbadi, Uganda’s Minister of State for Trade, and Lee Kinyanjui, Kenya’s Cabinet Secretary for Investments, Trade, and Industry. 

The meeting took place from August 29 to 30, 2025, marking what officials described as a turning point in the implementation of East African Community (EAC) protocols.

Declining trade amid growing barriers

According to the Ministry of Finance’s July performance report, export receipts fell by 3.6% in June compared to May, mainly due to new tariffs and non-tariff barriers imposed by EAC member countries.

These restrictions, ranging from import quotas to unilateral taxes, have disrupted the free flow of goods within the bloc, contrary to the principles of the EAC Customs Union.

Products like tiles, fish, dairy, meat, onions, and potatoes, which would ordinarily access the regional market without hindrance, have instead faced restrictions that have curtailed Uganda’s share of the regional pie.

Tariff and non-tariff barriers

According to the East African Business Council (EABC), for Ugandan exporters, Kenya has been one of the toughest markets to navigate.

They have had to contend with a 25% duty on eggs, which increases costs by nearly sh913 per tray, even though the levy had been suspended at the EAC level. 

Restrictions on Ugandan sugar, one of the country’s most important agricultural exports, have persisted despite repeated negotiations.

The imposition of an 18% value-added tax on exercise books has further disadvantaged Ugandan manufacturers, who sell similar products tax-free at home. 

Tissue paper consignments have been turned back on claims of poor packaging standards, while Uganda’s calibration certificates for petroleum tankers have been rejected, forcing transporters to undergo expensive recertification.

Delays in licensing milk, poultry, and grain exports have further complicated matters.
Uganda had also applied restrictions on Kenyan products, fuelling the tit-for-tat trade disputes.

A 13% excise duty has been levied on Kenyan fruit juices because the sugar used in their processing is sourced from outside the EAC, a move that runs counter to common tariff rules.