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How Kenya Loses Billions in Revenue at Mandera Border To Informal Trade

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MANDERA, Kenya – Kenya is losing billions in revenue at its Mandera border with Ethiopia and Somalia, due to a combination of border closures and porous, unregulated crossings, local officials have warned.

While the border with Ethiopia at Suftu and Rhamu remains open to largely informal and unchecked movement of people and goods across the River Daua, the Kenya-Somalia border has been closed for 16 years.

This closure, initially prompted by security concerns and Kenya Defence Forces’ (KDF) operations against the militant group Al-Shabaab, has severely restricted access to Somalia’s Bula Hawa town.

The Kenya-Somalia border point 1 is fully equipped with an official entryway, immigration offices, and a border patrol police post, but has been dormant since the Mwai Kibaki era due to security risks.

However, informal trade routes persist, with essential goods like sugar, rice, and powdered milk crossing into Kenya from Somalia, while Kenyan traders supply maize flour and tea leaves to Somalia.

Local leaders, including Mandera Trade Executive Adan Hamud, believe the prolonged closure and unregulated crossings are bleeding both the national and county governments of much-needed revenue.

“The volume of illegal trade is high, and reopening the border would allow the Kenya Revenue Authority (KRA) to step in, increasing revenue collection,” Hamud explained. “While it may raise the cost of basic supplies for Mandera residents in the short term, it would be beneficial for the country in the long run through legitimized trade.”

Security officials in Mandera acknowledge the existence of these informal crossings, noting that they provide crucial food supplies to local residents who would otherwise struggle, especially during droughts and when heavy rains disrupt transport links.

Mandera Deputy County Commissioner Patrick Meso stressed the necessity of allowing minimal cross-border movement to prevent hunger.

“We allow limited crossings for basic foodstuffs, as we cannot let our people starve due to the border closure,” Meso said. “In cases where flooding cuts off transport routes, access to supplies from Nairobi becomes impossible, making neighboring countries the only viable option.”

A recent multi-agency visit, led by KRA Deputy Commissioner Macharia Chege, explored the feasibility of reopening the border with Somalia.

The team toured both the Somalia and Ethiopian borders to assess the potential for setting up an official customs office.

The reopening plan, however, has faced delays due to ongoing security concerns linked to Al-Shabaab, as confirmed by Interior Cabinet Secretary Kithure Kindiki in July.

“We’ve been working on reopening our border points, but security challenges have caused a delay,” Kindiki said. “The plan remains in place, but it is on hold as we address the threats posed by militants.”
Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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