Bridging Horizons: The Kenya-Somalia Trade Facilitation Endeavor

In the heart of East Africa, an evolving conversation is taking place, one that holds the promise of profound economic transformation. This dialogue, centered around a trade facilitation agreement, is set to dismantle the irregular non-tariff barriers that have historically strained the economic synergy between Kenya and Somalia, two neighboring nations with rich cultural ties.

Setting the Stage for Regional Collaboration

In December 2023, a pivotal development unfolded as Somalia took its place as the eighth member of the East African Community (EAC). However, despite this significant milestone, trade exchanges with Kenya have often been hampered by an array of levies and policy upheavals. Somalia, on the path to fully integrating key trade protocols, seeks to synchronize its commerce with the established rhythms of fellow EAC members.

The Somalia-Kenya Trade Week, inaugurated in Nairobi, set an ambitious tone with Kenya’s Trade Cabinet Secretary, Lee Kinyanjui, accentuating the importance of eliminating non-tariff barriers. “To strengthen trade and investment,” Kinyanjui articulated, “Kenya and Somalia must explore key areas of cooperation. One crucial step is finalizing the Memorandum of Understanding (MoU) on Promotion of Trade Cooperation, which will facilitate smoother trade relations between the two countries.”

Proposals for a Shared Economic Future

The convergence of policy makers and business leaders during this event, jointly organized by the Nation Media Group PLC and the Somali Embassy in Nairobi, underscored a vision for collaborative growth. Distinguished contributors included Somalia’s Minister for Planning, Investment, and Development, Mohamud Abdurrahman Sheikh Farah, and Somalia ambassador to Kenya, Jabril Abdulle.

“Why do we not manufacture the clothes we wear?” questioned Wilfred Kiboro, Chairman of the NMG Board, during a passionate plea for increased intra-African trade.

The potential is substantial: Somalia’s economy, gradually awakening from decades of unrest, is ripe for investment. With an estimated fisheries sector worth Sh258 billion ($2 billion), the nation’s expansive 3,000 km coastline, the longest continental stretch in Africa, promises significant maritime opportunities.

Overcoming Current Challenges

The dialogue between the two nations does not shy away from tackling hard truths. Issues such as border security and the modernisation of customs processes in Garissa, Wajir, and Mandera were central themes, with Kinyanjui advocating for reinforced trade facilitation to curb illicit exchanges while promoting legal commerce.

Reflecting on these challenges, Somalia’s entry into the EAC saw Kenya’s exports—ranging from khat and dairy products to cereals and pharmaceuticals—reach Sh20.2 billion ($155.2 million) in 2023. Conversely, Kenya’s importation of Somali goods stood at approximately Sh45.2 million ($348,000), consisting primarily of fish, livestock, sesame seeds, and essential oils.

Envisioning a New Economic Paradigm

As Somalia embraces a period of optimism, evident through strategic policy reforms aimed at luring foreign investments, Minister Farah remarked, “This trade week takes place at an important time as Somalia enters a new era of optimism and progress.”

Meanwhile, Kiboro’s insights draw attention to the inefficiencies currently besetting regional industrialization, notably the high cost of energy. “The cost of energy in Kenya is one of the highest in the world,” he observed. In this interplay of ideas, Abdulle’s call for the diversification of Kenyan businesses in Mogadishu echoes the sentiment of shared potential: “This trade fair is a reflection of the thriving economic and business relations between Kenya and Somalia, two nations bound by history, culture, and an entrepreneurial spirit.”

Shaping Narratives for Prosperity

As Governor Nathif Jamah urged the media to sculpt a more positive narrative around Somalia, the 2025 Kenya-Somalia Trade Week emerges as a beacon of hope, building on the momentum of prior engagements such as the 2024 Invest Somalia Conference and Expo. This year’s fair, running from February 26 to 28, features contributions from 76 exhibitors across various sectors, collaboratively paving a new path towards prosperity.

As questions of regional partnership and economic sustainability linger, one has to wonder: Could this be the dawn of a rejuvenated regional commerce landscape, driven by a shared vision and mutual perseverance?

Edited By Ali Musa
Axadle Times International–Monitoring