In July 2025, Trump’s government imposed retaliatory tariffs on dozens of nations, with South Africa, Nigeria, and Lesotho facing the highest rates.
While Kenya and Uganda did not face punitive duties, their exports, which included Kenyan flowers and tea and Ugandan coffee, were subject to the 10% baseline charge.
Instead of retaliating outside, Kenya and Uganda have moved inward, seizing the opportunity to enhance regional economic ties and minimize reliance on unpredictable global markets.
Following a bilateral meeting in Nairobi in July, Presidents William Ruto of Kenya and Yoweri Museveni of Uganda urged their trade ministers to “urgently” gather and address all tariff and non-tariff barriers (NTBs) impeding cross-border trade.
On July 31, Kenya’s Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, and Uganda’s Trade, Industry, and Cooperatives Minister, Wilson Mbadi, met in Nairobi and agreed to share names of all NTB-affected items.
Then, from August 18 to 22, a technical meeting was held in Mbale, Uganda, to discuss the lists that were exchanged.
“Ministers directed border agencies to immediately address delays relating to multiple checkpoints…border management agencies to ensure 24/7-hour operations of their respective functions,” a joint statement sent on Saturday reads in part.
The two parties agreed to eliminate discriminatory excise tariffs, levies, and other costs that impede the free flow of products.
The new agreement between Uganda and Kenya states that all items originating in Kenya and Uganda will now be classified as transfers rather than imports.
This eliminates tariffs and lowers the cost of doing business.
Key initiatives include removing congestion from the Malaba and Busia borders within 24 hours, the reduction of truck traffic backlogs to no more than 4 km in Malaba and 500 meters in Busia, and creating a joint technical committee to track progress and settle issues.
In addition, Kenya plans to speed up the completion of the Suam One Stop Border Post (Kenyan side) and commission operations while renovating the road network at the Lwakhakha Border and installing a scanner on the Kenyan side.
Trade between Kenya and Uganda
Uganda is Kenya’s single largest commercial partner and the most frequent user of the Mombasa Port. In 2024, Uganda accounted for 65.6% of Kenya’s total transit volume, up from 62.3% in 2023.
Kenya’s exports to Uganda were valued at Sh125.9 billion in 2024, a tiny decrease from Sh126.3 billion the previous year, but still reflecting Uganda’s dominant position in Kenya’s trade balance.
The value of imports decreased from Sh41.2 billion in 2023 to Sh37.7 billion.
