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Kenya Economic NewsMacro Economic News

Kenya and Uganda Open Up Dynamic New Trade Route: Suam Border Crossing

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In a significant move that promises to revolutionize cross-border trade, Kenya and Uganda are on the brink of introducing a brand-new Customs post at the Suam border crossing. This development marks a remarkable stride in enhancing the economic connectivity of the region. Backed by the robust support of the African Finance Development Bank and in partnership with China State Engineering Construction Corporation, the Suam border post is poised to streamline a range of crucial processes, including immigration, Customs, security, and sanitary inspections. This strategic overhaul aims to facilitate the efficient transportation and clearance of goods, heralding a new era of seamless trade.

The transformative vision extends to the modernization of the Suam-Bukwo-Kapchorwa road, an initiative that is expected to breathe fresh life into the Suam crossing while also providing a substantial boost to the local economy. This multifaceted project also directly addresses the long-standing issue of congestion at the primary Busia and Malaba border facilities, a bottleneck that has hampered the fluidity of trade between the two nations.

A breath of fresh air for Kenyan and Ugandan traders who have long relied on the shared border crossings at Malaba and Busia, the two countries are actively collaborating to elevate the Suam one-stop border Customs and immigration post into a comprehensive one-stop border post, establishing it as the third of its kind to connect these East African neighbors.

Speaking to the magnitude of the undertaking, Raymond Omollo, Kenya’s Interior and National Coordination Principal Secretary, shared, “The wider project includes the Kapchorwa-Suam-Kitale trade route and costs Ksh 5 billion ($35 million). Its primary aim is to enhance the transport and clearance of goods. The facility is anticipated to open its doors by the end of September.”

Emphasizing the strategic investment, the Kenyan government has committed Ksh 100 million ($700,000) towards the creation of the border crossing point. This pivotal development will encompass vital functions such as immigration, Customs, security, and sanitary inspections, all conveniently housed under a single roof. The comprehensive upgrade of both the post and the Kitale-Suam road, undertaken by distinct entities, is harmoniously scheduled for completion in the coming month.

The realization of this transformative endeavor has been made possible through a collaborative effort between the governments of Kenya and Uganda, with the robust backing of the African Finance Development Bank. Playing a central role as the principal contractor, China State Engineering Construction Corporation is lending its expertise to the materialization of this cross-border project.

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