In a bid to enhance regional trade and economic integration, Kenya and Somalia are set to finalize a crucial trade facilitation deal aimed at eliminating non-tariff barriers and streamlining cross-border commerce. This move is expected to accelerate Somalia’s full integration into the East African Community (EAC) and boost bilateral trade relations.
Somalia, which officially joined the EAC in December 2023 as its eighth member, has faced irregular levies, policy shifts, and trade penalties in its transactions with Kenya. These challenges stem from Somalia’s ongoing efforts to adopt key EAC trade protocols, which will place it on equal footing with other member states in the regional free trade zone.
At the ongoing Somalia-Kenya Trade Week in Nairobi, Kenya’s Trade Cabinet Secretary Lee Kinyanjui announced the imminent signing of a Memorandum of Understanding (MoU) on trade cooperation. This agreement will prioritize the removal of non-tariff barriers, enhance border security, and streamline customs clearance processes.
The event, co-organized by the Nation Media Group and the Somali Embassy, brought together high-level officials including Somalia’s Minister for Planning, Investment and Development, Mohamud Abdurahman Sheikh Farah, and Somalia’s ambassador to Kenya, Jabril Abdulle.
NMG Chairman Wilfred Kiboro highlighted the importance of increased trade between the two nations. “Strengthening trade and investment requires collaboration in key areas, and finalizing this MoU is a vital step toward smoother economic relations,” Kiboro stated.
Several recommendations were put forward, including the establishment of a joint trade committee to address non-tariff barriers and promote seamless business operations. Somalia’s rapidly growing economy, particularly in agriculture, fisheries, manufacturing, and infrastructure, offers significant investment potential. Notably, its fisheries sector, valued at $2 billion, boasts a 3000km coastline the longest on mainland Africa.
As both nations work toward greater economic synergy, this agreement marks a pivotal step in fostering stability, growth, and mutual prosperity in the region.
