PS Karugu said she is driving efforts to establish a direct transport corridor between Kenya and South Sudan, which would reduce transit costs and improve the competitiveness of businesses operating across the two markets.
NAIROBI, Kenya Aug 27 – Kenya and South Sudan are seeking to dismantle persistent barriers to cross-border trade as bilateral commerce between the two countries declines from $246 million to $168 million.
The two countries have convened in Nairobi for high-level discussions aimed at addressing bottlenecks affecting the movement of goods and people, reducing transport costs and strengthening economic cooperation.
Principal Secretary for the State Department for East African Community Affairs and Acting PS for ASALs and Regional Development, Dr Caroline W. Karugu, said the talks are focused on finding practical solutions to challenges affecting trade between the neighbouring countries.
Karugu said she is driving efforts to establish a direct transport corridor between Kenya and South Sudan, which would reduce transit costs and improve the competitiveness of businesses operating across the two markets.
“Kenya and South Sudan have convened in Nairobi to dismantle persistent cross-border trade barriers following a steep decline in bilateral trade from $246 million down to $168 million,” Karugu said.
She added that the proposed direct transport corridor would be designed to cut the cost of moving goods while improving connectivity and supporting regional competitiveness.
The initiative comes amid renewed efforts by Kenya and South Sudan to improve road infrastructure linking the two countries. Earlier this month, the two governments renewed their push to advance the road connection between Lokichokio in northern Kenya, Nadapal at the South Sudan border and Juba, with the project expected to reduce cargo transit times and strengthen trade.
The Nairobi talks are expected to focus on non-tariff barriers and other challenges that have continued to raise the cost and time required to move cargo between Kenya and South Sudan.
For transporters, the efficiency of the corridor is critical as South Sudan relies heavily on regional transport routes for imported goods.
Recent disruptions, including insecurity, illegal roadblocks, extortion and harassment along routes serving South Sudan, have raised concerns among Kenyan truckers and threatened to disrupt trade flows.
Kenya is also pursuing wider measures to improve regional trade connectivity and strengthen its position as a gateway to neighbouring landlocked markets.
The Northern Corridor links the Port of Mombasa to several countries in East and Central Africa, including South Sudan, while the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor offers another strategic route for regional trade.
The proposed direct corridor is expected to make the movement of goods more predictable by reducing transit distances, delays and associated logistics costs.
For businesses, lower transport costs could improve the competitiveness of Kenyan exports in the South Sudanese market while making imports into South Sudan more affordable.
The initiative could also open up new opportunities for investment in northern Kenya, particularly in transport, logistics, warehousing and other services supporting cross-border commerce.
Kenya has previously identified improved regional transport infrastructure as a key component of its strategy to strengthen trade and economic integration with neighbouring countries.
In July, the government said it was working to remove trade bottlenecks and improve transport infrastructure across the Horn of Africa, with the LAPSSET corridor positioned as a strategic link to regional markets.
The decline in bilateral trade from $246 million to $168 million has increased pressure on both governments to address the structural challenges affecting commerce.
Karugu said the proposed interventions are intended to create a more efficient trading environment and strengthen the economic relationship between Kenya and South Sudan.
The discussions also come as the two countries pursue broader regional integration initiatives, with infrastructure, transport and trade facilitation emerging as key areas of cooperation.
If implemented, the direct transport corridor could provide a more efficient link between Kenyan markets and South Sudan while supporting the movement of goods from the Port of Mombasa into the South Sudanese market.
The two governments are therefore expected to continue working on practical measures to eliminate trade barriers, improve border efficiency and strengthen transport links as they seek to reverse the decline in bilateral trade.
The push reflects a broader regional effort to replace costly trade bottlenecks with more efficient transport corridors capable of supporting commerce, investment and economic integration across East Africa.
