Home Business Cross-border trade surges as MSMEs tap EAC duty-free scheme

Cross-border trade surges as MSMEs tap EAC duty-free scheme

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TAITA TAVETA, County – Cross-border trade between Kenya and Tanzania through the Taveta-Holili One-Stop Border Post (OSBP) has recorded significant growth, driven by increasing participation of micro, small and medium enterprises (MSMEs) benefiting from the East African Community (EAC) Simplified Trade Regime.

The Kenya Revenue Authority (KRA) said 9,660 Simplified Certificates of Origin (SCOs) were issued to Kenyan traders exporting goods to Tanzania between July 2024 and December 2025, enabling them to access duty-free markets for qualifying consignments valued at up to USD 2,000 under the regional trade framework.

The exports included margarine, cosmetics, spices, household utensils, mattresses, window glass, steel wire products and other manufactured goods.

During the same period, the Tanzania Revenue Authority (TRA) issued 465 Simplified Certificates of Origin to traders exporting goods into Kenya, with agricultural produce accounting for the bulk of the exports.

KRA said the increased uptake of the simplified trade regime has translated into higher cargo volumes at the Taveta One-Stop Border Post.

Between July and December 2025, the border post cleared 17,005 trucks, comprising 14,898 transit trucks and 2,107 export vehicles, representing a 7.57 per cent increase from the 15,808 trucks processed during the corresponding period of the previous financial year.

The authority noted that the six-month traffic already represents more than half of the total 31,041 trucks processed during the entire 2024/25 financial year, pointing to sustained growth in regional trade.

Under the EAC Simplified Trade Regime, small-scale traders importing or exporting eligible goods valued at up to USD 2,000 qualify for duty-free access upon obtaining a Simplified Certificate of Origin from the exporting country. Applicable domestic taxes, including Value Added Tax (VAT) and excise duty, remain payable where required.

According to KRA, the framework has reduced trading costs for small businesses, expanded market access and strengthened commercial ties between border communities in Kenya and Tanzania.

The authority encouraged traders to utilise official border crossing points and comply with customs regulations, warning that smuggling undermines fair trade and exposes businesses to legal and financial risks.

KRA also said it continues to enhance trade facilitation through simplified customs procedures, improved compliance systems and coordinated border management under the One-Stop Border Post model, which has reduced clearance times and administrative bottlenecks.

Speaking during a stakeholder engagement forum in Taveta attended by government agencies from Kenya and Tanzania alongside private sector players, the Commissioner for Customs and Border Control said stronger collaboration among border agencies, businesses and local communities is critical to promoting compliance and facilitating legitimate trade.

“Our goal is to strike the right balance between safeguarding our borders and facilitating legitimate trade and travel. By empowering small-scale traders, we are expanding economic opportunities, creating jobs and accelerating regional integration,” the commissioner said.

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