The government has intensified efforts to enhance cross-border trade between Kenya and Tanzania, with increased focus on the Lungalunga border as a key gateway for regional commerce under the East African Community (EAC) framework.
Principal Secretary (PS) for East African Community (EAC) Affairs, Caroline Karugu, held a consultative meeting with Kwale Governor Fatuma Achani to explore joint interventions between the national and county governments aimed at improving trade efficiency and unlocking the economic potential of border points.
Karugu said Kenya collected Sh321.6 billion in revenue from EAC trade in the past financial year, noting that Lungalunga border contributed Sh1.1 billion to the total.
She described Lungalunga as an emerging strategic trade corridor, saying improved efficiency at the facility would enhance revenue collection and strengthen Kenya’s competitiveness in the region.
“The Lungalunga border is an increasingly important trade corridor within the East African region. Enhancing its operational efficiency will improve revenue collection and reinforce Kenya’s competitiveness in regional markets,” she said.
However, Karugu raised concern over what she termed declining competitiveness in Kenya’s trade and logistics sector compared to neighbouring countries, particularly Tanzania.
She cited high cost of doing business, border taxation challenges, and logistical inefficiencies as key constraints affecting trade performance.
“Kenya must urgently address the underlying challenges affecting competitiveness, including cost of doing business, border taxation, and logistical inefficiencies,” she said, adding that a review of trade facilitation measures was necessary to improve the ease of doing business.
Governor Achani welcomed the initiative, terming it timely in boosting economic opportunities for communities along the border.
She said enhanced access to the EAC market would benefit small-scale traders and contribute to inclusive growth.
“Expanding access to the East African Community market will have far-reaching benefits, particularly for small-scale traders. This collaboration presents an opportunity to drive inclusive growth and revitalise border towns such as Lungalunga,” she said.
Achani noted that Lungalunga had historically lagged in development, expressing optimism that coordinated investments and policy interventions would transform it into a key economic hub.
The discussions underscore ongoing government efforts to improve trade facilitation, strengthen regional integration, and enhance the competitiveness of Kenya’s border points within the EAC bloc.
By Chari Suche
