South Sudan, Kenya agree to ease trade barriers, fast-track cross-border road

South Sudan and Kenya have agreed on a series of measures to dismantle key trade barriers and accelerate construction of a major cross-border road linking the two countries.

The measures were agreed after a five-day bilateral meeting in Juba.

The talks, which brought together senior government officials from both nations, focused on improving trade flows, lowering the cost of doing business, and strengthening regional integration under the East African Community (EAC) framework.

At the heart of the discussions was a shared commitment to address persistent bottlenecks that have slowed the movement of goods between the two countries, particularly for landlocked South Sudan, which relies heavily on Kenyan ports and transport routes.

Ministers from both sides agreed to take concrete steps to reduce the cost of importing goods into South Sudan, including reviewing high container security fees charged by shipping lines and lowering insurance premiums on cargo.

Officials also agreed that relevant ministries from both countries will convene a joint meeting with shipping companies by May 30, 2026, to reassess the fees applied to South Sudan-bound cargo.

At the same time, the Bank of South Sudan and Kenya’s Insurance Regulatory Authority have been tasked with engaging insurers to bring down costly premiums that traders say inflate prices of essential goods.

The meeting also addressed delays linked to multiple cargo inspections, high demurrage charges, and clearance procedures.

South Sudan has been pushing for faster clearance of its goods at the port of Mombasa rather than inland in Nairobi, a move expected to cut transit time and costs.

Kenya raised concerns over regulatory hurdles facing its businesses in South Sudan, including excessive documentation, roadblocks and weak legal protections.

The two sides said they would streamline requirements, remove unofficial checkpoints along the Nimule–Juba corridor and improve the investment climate.

In a further boost to trade ties, the two governments agreed to fast-track a Memorandum of Understanding on Trade and Investment Promotion by June 2026, aimed at formalizing and deepening economic cooperation.

A major outcome of the meeting was renewed momentum behind the construction of the Nadapal–Juba road, a project seen as critical to unlocking trade between the two countries.

Ministers described the corridor as the most direct and strategic route connecting Kenya and South Sudan, with the potential to significantly reduce travel time and transport costs for goods moving between Juba and the Kenyan border.

The two governments further agreed to jointly engage financial institutions by May 1, 2026, to mobilize funding and pave the way for the start of construction.

Once completed, the road is expected to complement the existing Nimule–Juba highway and ease pressure on current routes, while opening up underdeveloped regions for trade and investment.

The meeting, led by Kenya’s Cabinet Secretary for East African Community Affairs Beatrice Askul Moe and South Sudan’s Minister for EAC Affairs Pieng Deng Kuol, reviewed a total of 18 issues affecting bilateral relations, evenly submitted by both countries.

The leaders emphasized that the engagement reflects a broader push within the EAC to resolve cross-border trade challenges through structured bilateral dialogue.

Both countries also agreed to institutionalize annual bilateral meetings to track progress and address emerging issues, with the next session scheduled for June 2026 in Nairobi.

If fully implemented, the measures could improve trade efficiency, reduce the cost of goods in South Sudan, and strengthen economic ties between the two neighbors.

Meanwhile, for South Sudan, improved access to Kenyan infrastructure and markets is vital for stabilizing supply chains and supporting long-term economic growth.

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