Nairobi: The government has increased its efforts to boost cross-border trade between Kenya and Tanzania, focusing on the Lungalunga border as a crucial entry point for regional commerce under the East African Community (EAC) framework.
According to Kenya News Agency, Caroline Karugu, the Principal Secretary for East African Community (EAC) Affairs, held a meeting with Kwale Governor Fatuma Achani to discuss collaborative measures between the national and county governments. The aim is to improve trade efficiency and unlock the economic potential of various border points. Karugu revealed that Kenya generated Sh321.6 billion in revenue from EAC trade in the previous financial year, with the Lungalunga border contributing Sh1.1 billion to this total.
Karugu emphasized the strategic importance of Lungalunga as a trade corridor, suggesting that enhancing its operational efficiency would boost revenue collection and strengthen Kenya’s competitive edge in the region. She expressed concerns over the declining competitiveness of Kenya’s trade and logistics sector compared to neighboring countries, particularly Tanzania. Karugu identified high business costs, border taxation issues, and logistical inefficiencies as primary obstacles affecting trade performance, urging a review of trade facilitation measures to improve the ease of doing business.
Governor Achani supported the initiative, describing it as timely for boosting economic opportunities for communities along the border. She highlighted the potential benefits of expanded access to the EAC market for small-scale traders, contributing to inclusive growth. Achani expressed optimism that coordinated investments and policy interventions could transform Lungalunga, which has historically lagged in development, into a key economic hub.
The discussions reflect ongoing government efforts to enhance trade facilitation, strengthen regional integration, and improve the competitiveness of Kenya’s border points within the EAC bloc.
