Kenya and Ethiopia have signed a simplified border trade agreement aimed at boosting bilateral trade and ensuring that border communities benefit from opportunities under the African Continental Free Trade Area (AfCFTA).

The agreement was signed in Addis Ababa, with Ethiopia represented by Minister of Trade and Regional Integration Kassahun Gofe and Kenya by Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui, underscoring the two countries’ shared commitment to deepening regional economic cooperation.

The deal simplifies and formalizes cross-border trade, particularly for small-scale traders—many of whom are women and youth—by reducing bureaucratic barriers, setting clear trade thresholds, and establishing a common list of tradable goods.

Officials say the framework will make trade easier, safer, and more transparent, while supporting livelihoods and increasing incomes.

Kenya and Ethiopia share a long and economically active border where informal trade has traditionally played a vital role in local economies.

However, traders have often faced regulatory hurdles and security challenges.

The new agreement seeks to address these issues, curb illicit trade, and strengthen peace and cooperation along the border.

It also reflects broader efforts by both countries to operationalize AfCFTA at the grassroots level, ensuring that ordinary traders actively participate in Africa’s economic integration and transformation.