Kenya and Somalia are intensifying efforts to finalize a trade agreement aimed at eliminating non-tariff barriers, improving cross-border trade, and strengthening economic ties, Kenyan officials announced on Tuesday.
The talks come as Somalia works to align its trade policies with East African Community (EAC) standards, following its accession to the regional bloc in December 2023. Despite joining the EAC, trade between Kenya and Somalia remains hindered by levies, regulatory inconsistencies, and non-tariff barriers that have slowed economic cooperation.
Kenyan Trade Cabinet Secretary Lee Kinyanjui, speaking at the Somalia-Kenya Trade Week, emphasized the importance of the agreement in facilitating smoother trade relations. “Finalizing the Memorandum of Understanding (MoU) on trade cooperation will mark a major step toward unlocking trade potential and fostering deeper economic integration,” Kinyanjui said. He also highlighted the establishment of a joint trade committee to systematically identify and address trade barriers that have long disrupted commerce between the two nations.
The Kenyan government has been pushing for stronger trade ties with Somalia, a country with a rapidly growing economy and significant investment potential in agriculture, fisheries, manufacturing, and infrastructure. Somalia’s expansive coastline and abundant fisheries sector present vast opportunities for maritime trade, which officials say remains largely underdeveloped.
Wilfred Kiboro, Chairman of Nation Media Group, urged the two countries to seize economic opportunities through increased bilateral cooperation. “Somalia has immense trade and investment potential. Enhancing economic collaboration will benefit both nations, particularly in sectors like fisheries, manufacturing, and infrastructure development,” he said.
Kenyan and Somali officials are also discussing measures to improve customs operations, enhance border security, and streamline trade regulations to create a more business-friendly environment. Both sides recognize that addressing security challenges and regulatory inefficiencies will be crucial for boosting trade flows and attracting foreign investment.
The ongoing negotiations reflect a broader regional push to foster economic integration in the Horn of Africa. A successful trade agreement could not only strengthen Kenya-Somalia relations but also contribute to the stability and economic development of the region.
