MALABA, Kenya – Kenya is seeking closer tax harmonisation within the East African Community and stronger technology-driven border surveillance as authorities confront smuggling along the Uganda frontier despite rising customs collections.
Kenya’s two major border crossings with Uganda are recording stronger revenue collections, but lawmakers say enforcement alone will not solve persistent smuggling unless East African countries address the tax differences that make unofficial trade financially attractive.
The National Assembly Select Committee on Regional Integration, during an inspection of the Busia and Malaba border posts, heard that goods continue to enter Kenya through non-gazetted routes, depriving governments of revenue while putting compliant traders at a competitive disadvantage.
Malaba exceeds revenue target
Malaba border station collected Sh11.04 billion in the year ended June 2026, surpassing its target of Sh10.62 billion.
Border officials told lawmakers that the station handles approximately 2,200 trucks every day, making it one of the country’s most important gateways for road freight between Kenya and Uganda.
The higher collections, however, have not eliminated illicit cross-border trade.
Officials told the committee that smugglers continue to exploit routes outside designated border crossings, allowing goods to bypass customs procedures and associated taxes.
Lawmakers want EAC tax harmonisation
The committee wants East African Community countries to move towards greater harmonisation of tax rates.
Lawmakers argued that significant differences in the cost of importing or moving goods between neighbouring countries can create incentives for traders to avoid official customs channels.
For businesses operating along the Kenya-Uganda border, the tax differential can directly affect profit margins and potentially make customs evasion more financially attractive.
The committee’s position is that reducing such disparities, while making formal trade more efficient, could complement enforcement measures aimed at combating smuggling.
Drones proposed for border surveillance
Border officials also called for increased investment in technology, including drones and more advanced scanners.
They said existing non-intrusive inspection scanners help authorities identify high-risk consignments and improve tax compliance, but argued that technology must evolve alongside increasingly sophisticated smuggling methods.
“Provision of drones for border surveillance would greatly improve revenue collection, as we are losing a lot through non-gazetted routes,” officials told the committee.
Drones would enable authorities to monitor areas outside formal crossing points and potentially identify movements of undeclared cargo.
Officials also called for more advanced scanning equipment to improve the detection of concealed goods.
Truck congestion threatens border efficiency
The committee was also warned that inadequate truck parking could become an increasingly serious challenge as cross-border traffic grows.
Malaba Station Manager Roderick Mulei said the existing holding yard is too small for the approximately 2,200 trucks handled by the station each day.
“The current holding yard is small for the 2,200 trucks that we handle daily, which leads to traffic snarl-ups, delays in cargo clearance, inconvenience to the public and security concerns,” Mulei said.
He said the congestion also affects the ability of customs officials and other participating government agencies to efficiently manage cargo.
The yard’s condition is another concern, with officials noting that it is not paved adequately to guarantee truck safety.
The outbound road loop for trucks travelling into Uganda has also remained incomplete, affecting the coordination of trucks, pedestrians and boda bodas around the crossing.
Kenya considers more border points
Lawmakers want the government to explore additional border points as trade volumes increase.
Expanding the number of official crossing points could help accommodate growing trade while potentially reducing pressure on Busia and Malaba.
The committee also reviewed the stalled 40-acre Jumuia Market project near the border.
The market is yet to move beyond the preparatory phase, with title acquisition and design work still pending.
A functioning market could provide a more formal setting for some of the commercial activity currently occurring informally around the border.
