Treasury Touts Faster Customs Reforms as Kenya Sharpens Its Edge as Regional Trade Hub

Kenya’s push to become a leading regional trade hub is gaining momentum, with the National Treasury saying ongoing customs clearance reforms are cutting border delays, lowering business costs, and easing pressure on consumer prices.

In a statement released on Wednesday, December 24, the Treasury said faster and more predictable customs processes are already delivering tangible benefits for traders, manufacturers, and consumers. 

While customs reforms may sound technical, officials insist their impact is felt directly in people’s daily lives through cheaper goods, better supply availability, and smoother business operations.

According to Treasury and Economic Planning Principal Secretary Dr Chris Kiptoo, delays at borders have long been a hidden cost that eventually finds its way to the consumer. 

Trucks held up at ports and border points translate into higher transport costs, disrupted supply chains, and ultimately higher prices on supermarket shelves.

“Faster customs clearance directly affects the prices of goods, the availability of supplies, and the cost of doing business in Kenya,” the Treasury said, noting that recent reforms are aimed at tackling these long-standing challenges.

Dr Kiptoo explained that by reducing the time goods spend at ports and border posts, traders save money on storage, fuel, and logistics. 

Those savings, he said, improve competitiveness for Kenyan businesses while also supporting jobs across the supply chain, from transporters and warehouse operators to retailers and manufacturers.

One of the key pillars of the reforms is improved coordination among government agencies operating at border points. 

Traditionally, traders have had to deal with multiple agencies separately, a process that often led to duplication, delays, and confusion. 

To address this, the government is strengthening inter-agency coordination through shared digital platforms, harmonised procedures, and clearer governance structures.

The Treasury said these changes are being anchored in law to ensure they outlast individual projects or political administrations. 

This legal backing is meant to provide certainty to investors and traders who rely on predictable rules and processes when moving goods across borders.

Digital transformation is also at the heart of the customs modernisation drive. Kenya has invested heavily in electronic single window systems, automated customs platforms, and data-driven risk management tools. 

These systems are designed to improve transparency, reduce revenue leakages, and speed up the clearance of goods deemed low-risk, while allowing authorities to focus enforcement efforts where they are most needed.

By relying more on technology and data, the government hopes to reduce human discretion at border points, a move that is expected to curb corruption and enhance trust in the system. 

Faster clearance times also mean goods move more quickly from ports to markets, reducing shortages and stabilising prices.

Treasury Cabinet Secretary John Mbadi has previously said such reforms are critical at a time when Kenya is facing stiff competition from neighbouring countries, particularly Tanzania, which has been aggressively improving its ports and trade corridors. 

Efficient customs processes, officials argue, are just as important as physical infrastructure like roads, railways, and ports.

The reforms are also closely linked to Kenya’s ambition to serve as a gateway for trade into the wider East and Central African region, including Uganda, Rwanda, South Sudan, and the Democratic Republic of Congo. 

With smoother border processes, Kenya hopes to attract more transit trade, boost port volumes at Mombasa, and strengthen its role in regional and global supply chains.

“The goal is faster, more secure trade that supports economic growth while positioning Kenya as a reliable gateway for regional and global commerce,” the Treasury said.

For ordinary Kenyans, the success of these reforms could mean more than just improved trade statistics. 

Lower import and transport costs have the potential to ease the cost of living, especially for essential goods such as food, fuel, and household items. 

For businesses, particularly small and medium-sized enterprises, quicker clearance can improve cash flow and reduce the uncertainty that often comes with cross-border trade.