By Caroline Katana
The national government has intensified efforts to enhance cross-border trade between Kenya and Tanzania, with renewed focus on the Lungalunga border as a critical gateway for regional commerce and economic integration.
Principal Secretary in the State Department for East African Community (EAC) Affairs, Caroline Karugu, held a consultative meeting with Kwale Governor Fatuma Achani to deliberate on joint strategies between the national and county governments aimed at boosting trade efficiency and maximizing the economic potential of border points.
Addressing the media after the meeting, Karugu disclosed that Kenya generated KSh 321.6 billion in revenue from trade within the EAC in the past year.
Notably, KSh 1.1 billion of this revenue was collected at the Lunga-Lunga border, underscoring its growing significance in facilitating regional trade flows.
“The Lungalunga border is an increasingly vital trade corridor within the East African region. Enhancing its operational efficiency will not only improve revenue collection but also reinforce Kenya’s competitiveness in regional markets,” Karugu stated.
Despite these gains, the Principal Secretary raised concern over Kenya’s declining competitiveness in trade and logistics within the region, particularly in comparison to Tanzania, whose Port of Dar es Salaam continues to attract a larger share of cargo traffic.
“Kenya must urgently address the underlying challenges affecting its competitiveness, including the cost of doing business, border taxation, and logistical inefficiencies. A comprehensive review of these factors is critical to improving the ease of trade and sustaining our position within the EAC,” she added.
Karugu emphasized the importance of streamlining border processes and reviewing tax regimes to create a more enabling environment for traders and investors, thereby facilitating seamless movement of goods across borders.
Kwale Governor Fatuma Achani welcomed the national government’s initiative, terming it a timely intervention that will unlock economic opportunities for local communities and strengthen regional trade linkages.
“Expanding access to the East African Community market will have far-reaching benefits, particularly for small-scale traders at the grassroots. This collaboration presents an opportunity to drive inclusive economic growth while revitalizing border towns such as Lungalunga,” said Achani.
She further noted that Lungalunga has historically lagged behind in development, expressing optimism that sustained investment and coordinated policy implementation will position the area as a vibrant economic hub.
The engagement signals a broader policy direction by the government to enhance trade facilitation, improve regional competitiveness, and ensure that the benefits of cross-border commerce are equitably distributed, particularly among communities living along Kenya’s borders.
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