Kenya’s domestic exports to Uganda and Tanzania fell to multi-year lows in February, highlighting persistent trade barriers that continue to undermine commerce within the East African Community (EAC).
Official data shows exports to Tanzania dropped to Sh2.6 billion, the lowest level since May 2021, when shipments stood at Sh2.4 billion. Exports to Uganda declined to Sh6.6 billion, the weakest performance since August 2022, when trade was disrupted by Kenya’s general election.
At the 25th Ordinary Summit held in Arusha last month, Heads of State set a June 30, 2026, deadline for eliminating all remaining non-tariff barriers (NTBs) to unlock regional commerce.
However, the latest figures underscore the continued impact of these barriers, which have repeatedly disrupted the free movement of goods between Kenya and its key regional markets.
Trade relations with Tanzania have in recent years been marked by periodic protectionist measures that have cut into export earnings for Kenyan firms.
In March 2025, Tanzania imposed levies on Kenyan products, including eggs, dairy, meat and confectionery, raising the cost of accessing its market and triggering fresh tensions.
The move was widely seen as inconsistent with the EAC Customs Union framework, which provides for the free movement of goods within the bloc.
Cargo containers at the port of Mombasa.
Photo credit: File | Nation Media Group
Earlier, in August 2024, Kenya’s Agriculture and Food Authority imposed a two percent levy on cereals and legumes imported from Tanzania, prompting protests from traders and forcing authorities to suspend the directive.
In February 2024, Tanzania had also temporarily halted the issuance of new tea import permits for Kenyan traders, citing quality concerns, in a move that further strained relations before diplomatic intervention eased the standoff.
Trade between Kenya and Uganda has similarly faced disruptions, with traders reporting delays and occasional blockades at border points following retaliatory measures by authorities on either side.
These recurring disputes contrast with the objectives of the EAC Customs Union Protocol, which came into force in 2005 to establish a free trade area with zero-rated tariffs on goods originating within member states.
The continued use of NTBs — including licensing requirements, quality checks and administrative delays — has weakened the effectiveness of the framework and constrained the growth of intra-regional trade.
Analysts say the decline in exports also reflects structural challenges within Kenya’s manufacturing sector.
Neighbouring economies have increasingly adopted import substitution policies, boosting local production and reducing reliance on Kenyan goods that previously dominated segments of their markets.
This shift has gradually eroded Kenya’s market share, particularly in manufactured products, even as regional demand continues to grow.
Kenya’s exports to Tanzania largely comprise soap, medicaments, and iron and steel products, while shipments to Uganda are dominated by cement, clinker, petroleum products and metals — sectors now facing rising competition from domestic producers in those countries.
Higher production costs and currency pressures have further weakened the competitiveness of Kenyan exporters, limiting their ability to compete with locally produced alternatives.
The latest data signals that without meaningful policy alignment and enforcement of regional trade agreements, Kenya risks losing further ground in its largest export markets within the EAC.
