Kenya’s Push for Regional Trade Integration
Kenya is set to use this year’s East African Community (EAC) MSME expo in Nairobi as a platform to advocate for the swift implementation of the joint East Africa Market Protocol. Despite ongoing challenges, the event highlights the country’s commitment to regional economic integration and trade facilitation.
The 10-day regional trade fair, which kicked off today, will feature a high-level opening session by President William Ruto on Monday, November 10, and a ministerial roundtable with the International Trade Centre (ITC). The ITC has officially launched its new regional office in Nairobi, marking the city as a continental hub for Africa. This move further solidifies Kenya’s role as a gateway for facilitating continental trade and supporting small and medium enterprises (MSMEs).
The expo will also serve as a major platform for “call to action” initiatives, addressing unresolved challenges such as Non-Tariff Barriers (NTBs). Participation from EAC ministers, AfCFTA representatives, and major development partners underscores the importance of this event in shaping regional trade policies.
The East Africa Market Protocol: A Longstanding Goal
The EAC Common Market Protocol, which came into effect on July 1, 2010, after being signed in 2009, aimed to enable entrepreneurs to operate freely across borders, serving a unified market of over 300 million consumers. However, its adoption has been slow, with most member countries still running their trades as separate and distinct markets, maintaining protectionist practices.
Tanzania recently banned foreigners from participating in trading across 15 services, including micro and small industries, though it softened its stance toward Kenya following bilateral talks. Similarly, Kenya and Uganda agreed to eliminate existing tariff and non-tariff barriers to facilitate trade, but challenges persist.
Addressing Trade Challenges
Tariff and non-tariff barriers affecting East African trade include customs and administrative procedures, tax measures, unharmonized standards, and import bans. Other significant barriers include lengthy customs and immigration procedures, multiple roadblocks, delays at weighbridges, and the non-harmonization of regulations, which increase the cost and time of doing business in the region.
Kenya remains committed to pushing for more open borders in the region and has reaffirmed its dedication to deepening economic integration under the framework of the EAC Treaty and the EAC Common Market Protocol. The protocol envisions a region where goods, services, labor, and capital move freely, creating an enabling environment for MSMEs to thrive beyond national borders.
The 25th Edition of the MSME Trade Fair
The 25th edition of the MSME Trade Fair will bring together more than 3,000 exhibitors from across the region, showcasing products and services that reflect East Africa’s diversity, cultural expression, and innovation.
The event has evolved into the region’s largest and most influential marketplace for innovators, artisans, and entrepreneurs, driving integration, enterprise, and shared prosperity across the eight partner states: Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, the Democratic Republic of Congo, and now Somalia.
MSMEs as a Key Driver of Employment
Kenya views the MSMEs sector as crucial in addressing unemployment, as it accounts for over 70% of employment in the country. The nation is also working to expand its export markets, with Africa remaining a key destination.
According to the Economic Survey 2025, exports destined for the African continent declined by 2.1% from Sh435.0 billion in 2023 to Sh425.6 billion in 2024. Exports to the EAC totaled Sh321.4 billion during the same period.
The decline was largely attributed to decreased export revenues from Somalia, Egypt, Tanzania, and South Sudan. Specifically, there was a drop in domestic exports of tomato sauces and re-exports of unassembled tractors to Tanzania.