EU gives Kenya Sh82.6m equipment to boost cross border trade

Kenya has received a major boost in regional trade after European Union delivered equipment worth Sh82.6 million that will be used to upgrade Moyale One Stop Border Post (OSBP).

Ministry of Trade said the equipment that represents 45 per cent of the EU pledge will be used to improve infrastructure and Information and Communication Technology at the Moyale border to promote free trade within Common Market for Eastern and Southern Africa (Comesa) corridor.

The equipment, the Ministry said, will help equip testing facilities at the border post, partitioning and equipping of medical laboratories as well as improving public amenities.

The equipment will ensure establishment of smart gates for customs and the piloting of the electronic Certificate of Origin system.

Speaking receiving the equipment on Tuesday at the Ministry's offices in Nairobi, Trade Principal Secretary Alfred K'Ombudo said the government anticipates growth in cross-border trade once the project is complete.

"We expect that these developments will create a seamless cross-border trading experience at the Kenya-Ethiopia border, particularly for our small-scale traders. Our ultimate goal is to generate more income opportunities for Kenyans, especially our youth and women, in alignment with the Bottom-Up Economic Transformation Agenda," he said.

Comesa signed the OSBP deal that amounts to Sh332.5 million in May, 2023 and is expected to run until December 2024.

Mshuka Kamwela, a member of Comesa Secretariat, said they will fast-track the remaining 55 per cent to ensure full realisation of the project goals that includes enhancing the capacity of border agencies and relevant government institutions.

"These advancements include greater automation, improved system connectivity and interfacing, and the progress in the implementation of National Single Windows," Kamwela said.

Christiane Haziyo, Project Manager for EU Delegation to Zambia and Comesa said the EU- funded programme is a remarkable step toward establishment of the African Continental Free Trade Area which is the region's largest Economic Community.

"These efforts are essential to securing and facilitating cross-border trade across the region’s key corridors. This equipment worth approximately Sh207 million Kenyan will ensure safe and smart trading experience at the border," she said.

PS K'Ombudo said the Ministry has organised training sessions for border officials, covering critical areas like the electronic Single Window system, non-tariff barriers resolution, and sanitary and phytosanitary measures.

He said the Ministry has also "involved the local community in the project design and implementation under the auspices of the Cross-Border Management Unit. This unit draws membership from the local administration, small-scale cross border traders and border agencies."