Cross-border trade booms at Taveta–Holili Border as Kenya and Tanzania unlock opportunities

Business
Cross-border trade booms at Taveta–Holili Border as Kenya and Tanzania unlock opportunities

Trade between Kenya and Tanzania through the Taveta–Holili One-Stop Border Post (OSBP) has reached record levels, driven by increased participation of micro, small, and medium enterprises (MSMEs).

The MSMEs are taking advantage of trade facilitation measures under the East African Community (EAC) framework.

According to data from KRA Customs and Border Control, between July 2024 and December 2025, a total of 9,660 Simplified Certificates of Origin (SCOs) were issued to Kenyan traders exporting goods to Tanzania. 

The certificates enable traders to access duty-free imports for qualifying goods valued at up to USD 2,000 under the EAC Simplified Trade Regime. 

However, applicable local taxes, including Value Added Tax (VAT) and excise duty, remain payable where required.

Taveta–Holili Border

Key exports from Kenya during the period included margarine, cosmetics, spices, household utensils, mattresses, window glass, steel wire products, and other manufactured goods.

The data further indicates that the Tanzania Revenue Authority (TRA) issued 465 Simplified Certificates of Origin to traders exporting goods into Kenya, with agricultural produce accounting for the majority of exports.

KRA says the sustained growth in cross-border trade is reflected in the increasing cargo volumes handled at the Taveta One-Stop Border Post. 

During the first half of the 2025/2026 Financial Year (July–December 2025), the facility processed 17,005 trucks, comprising 14,898 transit vehicles and 2,107 export vehicles. 

This represents a 7.57 per cent increase—equivalent to 1,197 additional trucks—compared to the 15,808 trucks cleared during the corresponding period of the previous financial year.

Notably, the six-month throughput already accounts for 54.7 per cent of the total truck traffic of 31,041 recorded during the entire 2024/2025 Financial Year, signalling sustained growth and an accelerating trend in regional trade.

Under the EAC Simplified Trade Regime, small-scale traders enjoy duty-free import and export privileges for consignments valued at up to USD 2,000, provided they obtain a Simplified Certificate of Origin from the country of origin. 

The initiative has significantly lowered the cost of doing business, expanded market opportunities, and strengthened economic ties between border communities in Kenya and Tanzania.

KRA is encouraging residents and entrepreneurs in both countries to take full advantage of the incentives available under the EAC framework to expand their businesses and participate more actively in regional trade.

The Authority also urges traders to use official entry and exit points and comply with customs regulations, warning that smuggling exposes businesses to unnecessary risks and undermines fair trade practices.

Beyond revenue collection, KRA continues to play a critical role in facilitating trade by simplifying customs procedures, strengthening compliance systems, and promoting the seamless movement of goods across borders.

Through the One-Stop Border Post initiative, traders benefit from faster cargo clearance, reduced administrative requirements, and improved coordination among border agencies. 

Trending Now


NTSA Director General Nashon Kondiwa has broken down exactly what happens during a…


Subscribe to Our Newsletter

*we hate spam as much as you do

More From Author


Related Posts

See all >>

Latest Posts

See all >>