The Kenyan government has initiated steps to harmonise county-level levies and fees with the East African Community (EAC) Common External Tariff (CET) and related trade protocols, in a move aimed at enhancing regional trade efficiency and reducing non-tariff barriers that hinder cross-border commerce.

This alignment effort is part of broader reforms designed to facilitate the smooth flow of goods and services within the EAC bloc and to position Kenya as a competitive regional trade hub. Currently, traders and manufacturers face overlapping charges imposed by different county governments, including cess, transport fees, and inspection levies.

These costs are often unpredictable and vary widely from one county to another, creating a disjointed regulatory environment that contradicts Kenya’s obligations under the EAC framework.

According to officials from the Ministry of Trade and the National Treasury, the harmonisation of county levies will be pursued through consultation with devolved units, with the ultimate goal of establishing a national policy framework that is consistent with regional trade obligations.

The plan is expected to ensure that counties levy only those charges that are compliant with EAC tariff structures, thereby reducing the administrative and financial burden on traders moving goods across counties and national borders.

Stakeholders in the manufacturing and logistics sectors have long expressed concern that the multiplicity of county charges erodes Kenya’s trade competitiveness, especially when compared to neighbouring countries such as Rwanda and Uganda, which have taken more decisive steps to eliminate internal barriers.

The Kenya Association of Manufacturers and various transport unions have cited instances where traders pay levies at every county border, raising the cost of doing business and reducing profit margins.

Aligning county levies with the EAC’s CET is also seen as a necessary step in supporting the African Continental Free Trade Area (AfCFTA), under which Kenya is expected to play a central role.

The reforms could significantly lower trade costs and attract more foreign direct investment into sectors such as agro-processing, textiles, and electronics.

As the government moves forward with the harmonisation agenda, county governments are being urged to view this shift not as a revenue loss, but as an opportunity to stimulate economic activity, grow trade volumes, and foster long-term prosperity through better integration with regional markets.