BUSIA, Kenya – Cross-border traders in East Africa are calling for the elimination of multiple fees and regulatory charges imposed by various state agencies, arguing that these costs undermine trade, particularly for women and youth.
Speaking at the AGRA Public-Private Dialogue on Non-Tariff Barriers (NTBs) held at the Busia One-Stop Border Post, representatives from lobby groups demanded urgent reforms to streamline trade under the East African Community (EAC) framework.
Key grievances highlighted during the forum included high fees levied by regulatory bodies overseeing plant health, food safety, and agricultural standards.
These charges, combined with opaque processes, logistical challenges, and additional taxes, are significant obstacles to trade in cereals, horticultural products, and other goods covered under the EAC Simplified Trade Regime (STR).
Frank Dafa, the East Africa Business Council’s (EABC) Manager for Trade in Goods, revealed that despite the STR’s provision to exempt consignments valued under $2,000 from import duties through the Simplified Certificate of Origin, traders face steep regulatory fees.
For instance, exporting 2–5 tonnes of cereals between Uganda and Kenya incurs inspection and testing fees totaling approximately KSh 20,000 ($200), accounting for about 10% of the consignment value.
“Governments need to instruct their agencies to eliminate these fees,” Dafa said. “Women and youth traders, who form the backbone of cross-border trade, cannot fully benefit from the STR due to these prohibitive costs.”
Traders from Uganda also voiced frustration over Kenya’s excise duty on eggs, which they say has made their exports uncompetitive.
The duty has effectively halted egg exports, disproportionately impacting small-scale traders reliant on the cross-border market.
Beyond fees, traders and clearing agents pointed to systemic inefficiencies at the Busia border.
Challenges include frequent system outages, unresponsive call centers, the absence of a mobile cargo scanner on the Kenyan side, and the presence of un-gazetted roadblocks at Korinda Prisons, Suo, Mundika, and Total.
Speaking at the AGRA Public-Private Dialogue on Non-Tariff Barriers (NTBs) held at the Busia One-Stop Border Post, representatives from lobby groups demanded urgent reforms to streamline trade under the East African Community (EAC) framework.
Key grievances highlighted during the forum included high fees levied by regulatory bodies overseeing plant health, food safety, and agricultural standards.
These charges, combined with opaque processes, logistical challenges, and additional taxes, are significant obstacles to trade in cereals, horticultural products, and other goods covered under the EAC Simplified Trade Regime (STR).
Frank Dafa, the East Africa Business Council’s (EABC) Manager for Trade in Goods, revealed that despite the STR’s provision to exempt consignments valued under $2,000 from import duties through the Simplified Certificate of Origin, traders face steep regulatory fees.
For instance, exporting 2–5 tonnes of cereals between Uganda and Kenya incurs inspection and testing fees totaling approximately KSh 20,000 ($200), accounting for about 10% of the consignment value.
“Governments need to instruct their agencies to eliminate these fees,” Dafa said. “Women and youth traders, who form the backbone of cross-border trade, cannot fully benefit from the STR due to these prohibitive costs.”
Traders from Uganda also voiced frustration over Kenya’s excise duty on eggs, which they say has made their exports uncompetitive.
The duty has effectively halted egg exports, disproportionately impacting small-scale traders reliant on the cross-border market.
Beyond fees, traders and clearing agents pointed to systemic inefficiencies at the Busia border.
Challenges include frequent system outages, unresponsive call centers, the absence of a mobile cargo scanner on the Kenyan side, and the presence of un-gazetted roadblocks at Korinda Prisons, Suo, Mundika, and Total.
