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Markets15 July 2026 - 09:40

Kenya pledges seamless regional cargo flow despite election fever

Uganda is the biggest transit destination among users of the Port of Mombasa

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by MARTIN MWITA
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East African Community Affairs and acting Principal Secretary in the State Department for ASALs and Regional Development, Caroline Karugu, speaks during a media engament on achievements for the 2025-26 financial year/ HANDOUT

Kenya has reassured regional traders, transporters and investors that the country's  election season will not disrupt the movement of cargo and people along the Northern Corridor.

This, as the government intensifies efforts to strengthen the region's busiest trade route and maintain investor confidence.

The assurance comes amid growing political activity ahead of the August 2027 General Election, with early campaigns and by-elections already signalling the start of an extended electioneering period that has previously raised concerns over the continuity of regional trade.

Speaking at a media forum on the East African Community (EAC) achievements for the 2025-26 financial year, East African Community Affairs Principal Secretary, Caroline Karugu said the Kenya will ensure cross-border trade is seamless during the political season.

"I wish to reassure transporters and people engaging in cross-border trade that the government of Kenya, together with the East African Community, will do all it takes to ensure goods moving along the Northern Corridor are not affected by the upcoming political season," Karugu said.

She said security will be enhanced along the corridor to safeguard the free movement of goods, people and labour as provided for under the EAC Treaty.

"We are ensuring that we are securing the Northern Corridor, our borders and our One Stop Border Posts so that they continue to operate efficiently and ensure goods and people move freely from country to country," she said.

Karugu also appealed to political leaders to safeguard the country's economic interests during the campaign period.

The Northern Corridor remains the backbone of East Africa's regional trade, stretching about 1,700 kilometres from the Port of Mombasa through Kenya to Uganda before connecting to Rwanda, Burundi, South Sudan and the eastern Democratic Republic of Congo.

The corridor handles more than 35.84 million metric tonnes of cargo annually and accounts for over 80 per cent of Kenya's transit trade.

It is the preferred route for landlocked countries due to improved infrastructure, increased efficiency at the Port of Mombasa and streamlined border operations.

Uganda remains the largest user of the Port of Mombasa, accounting for 65.7 per cent of total transit cargo volumes, followed by South Sudan at 12.7 per cent, the Democratic Republic of Congo at 11.8 per cent, Rwanda at 5.1 per cent and Burundi at 1.1 per cent.

During the year, Kenya's exports to EAC partner states increased by 9.3 per cent to Sh351.2 billion from Sh321.4 billion, with the regional bloc accounting for 31 per cent of the country's global exports and 77 per cent of all Kenyan exports destined for Africa.

Kenya maintained a trade surplus with all EAC partner states and remained the region's leading intra-EAC exporter, contributing 35 per cent of total regional exports.

Manufactured goods continued to dominate Kenya's export basket, underlining the country's industrial competitiveness.

Uganda remained Kenya's largest export destination within the bloc, with export earnings rising by nearly 30 per cent to Sh162.3 billion.

Exports to Rwanda increased to Sh43.3 billion, while exports to the Democratic Republic of Congo rose to Sh37.1 billion. Burundi also recorded modest growth.

However, exports to South Sudan declined to Sh21.5 billion from Sh29.7 billion, while exports to Tanzania fell to Sh63.6 billion from Sh67.2 billion.

The government's assurance comes as Kenya  implements measures to improve logistics and eliminate non-tariff barriers that have historically slowed cargo movement.

Among the major reforms has been the reduction of road checkpoints along the Northern Corridor from as many as 26 to just five gazetted inspection points, significantly cutting transit time and transport costs for regional traders.

The ministry has also expanded engagement with county governments to remove local levies and administrative barriers affecting regional commerce.

Structured consultations were held with Mombasa, Kajiado, Kwale, Taita Taveta and Migori counties.

As a result, Mombasa county abolished parking fees charged on trucks using gazetted transit routes, while Kajiado committed to scrap the Sh2,000 transit fee imposed on regional cargo trucks during the 2026-27 financial year.

Kwale county also reaffirmed that it does not levy cess on cargo originating from or transiting within the EAC.

The government said the next step will be a Presidential Roundtable bringing together governors of border counties to harmonise policies aimed at improving trade facilitation along the corridor.

The improvements come as the EAC remains Kenya's largest export market.

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