The Kenya Revenue Authority (KRA) has launched three KRA trade hubs in Kainuk, Lodwar, and Kakuma to improve trade efficiency, particularly along the Northern Corridor—a critical trade route connecting Kenya to South Sudan, Ethiopia, and Uganda. Trade between these countries is set to be transformed and open more opportunities, further establishing Kenya as the trading hub for regional and international trade.
The newly established KRA trade hubs are set to significantly cut costs for both businesses and the Kenya Revenue Authority (KRA). In the past, traders were forced to travel long distances to access KRA services, adding to their operational expenses. However, with these centers now up and running, accessibility has greatly improved, leading to lower transportation costs for businesses. Additionally, the centers will enhance the fight against illicit trade along the corridor, where smugglers have taken advantage of weak border controls to move counterfeit and untaxed goods. By strengthening enforcement at these points, KRA aims to curb tax evasion and illegal trade.
Cost Efficiency and Improved Enforcement for KRA
For KRA, these facilities will also lead to cost savings, as the need to deploy enforcement teams from Eldoret for inspections along the Northern Corridor will be minimized. Looking ahead, the tax authority plans to open additional border posts along the corridor to streamline trade processes, boost revenue collection, and create more economic opportunities. These new checkpoints will also help seal off porous borders that have long contributed to revenue losses due to smuggling.
These KRA trade hubs, funded under the Eastern Africa Regional Transport, Trade, and Development Facilitation Project (EARTTDFP) by the World Bank, serve as crucial operational centers for customs operations. They underscore KRA’s commitment to enhancing trade efficiency and strengthening compliance enforcement in the region.
How the New Trade Hubs Will Benefit Businesses
These trade hubs are expected to:
- Reduce congestion at major border points
- Speed up transit times for goods
- Enhance security for traders and cargo
Strategic Role in Regional Trade
These hubs will host customs officers, revenue enforcement teams, and trade support personnel to assist traders, reducing risks such as smuggling and cargo theft. With better trade infrastructure, SMEs can now leverage these hubs to expand their market reach and streamline their supply chains.
