Informal cross border trade falls 16% to Ksh 249M

Informal cross-border trade between Kenya and its neighboring countries saw a significant 16% decline in 2025, falling to Ksh 249 million, according to the latest data from the Kenya National Bureau of Statistics (KNBS). This downturn is attributed to reduced agricultural production, which negatively impacted market activity. The report, covering thirteen border crossing points with Uganda, Tanzania, Ethiopia, and Somalia, revealed a year-on-year decrease from Ksh 299 million in 2024.

During June 2025 specifically, informal exports dropped by 22.3% to Ksh 124 million, while informal imports fell to Ksh 125 million. This change resulted in a 16.7% contraction of the total informal trade volume, shifting the balance from a surplus of Ksh 20.4 million in December 2024 to a deficit of Ksh 1.1 million over the same period. The decline was primarily driven by reduced trade in food and live animals, which accounted for 37.9% of exports and 78.5% of imports.

Ethiopia and Uganda remained the leading destinations for informal exports, while Tanzania became the primary source of informal imports, accounting for 47.2% of the total in December 2024, up from 36.1% in the previous year. Moyale border station was the leading corridor for informal exports, with a noted decline in exports from Ksh 63.8 million in 2024 to Ksh 51.9 million in 2025.

Motorbikes were the most preferred mode of transport for these border traders. The survey encompassed key border points such as Busia, Malaba, Suam, Lwakhakha, Isebania, Namanga, and Rhamu, among others.