KRA, India Sign Ksh282B Deal to Track Imports
President William Ruto during a presser alongside Indian Prime Minister Narendra Modi on December 5, 2023.
Kenya and India have signed a landmark customs agreement in Nairobi, committing both governments to share cargo information before goods arrive at their borders, a move set to transform trade flows across a corridor worth Ksh282 billion.
The Memorandum of Understanding (MoU) was inked between the Kenya Revenue Authority (KRA) and India's Central Board of Indirect Taxes and Customs (CBITC), covering the exchange of pre-arrival information for goods moving between the two countries on April 27 spearheaded by the Principal Secretary for Trade and Commerce Regina Akoth Ombam.
"KRA Commissioner General Dr Lilian Nyawanda signed on behalf of Kenya, while India's CBIC Member Shri Yogendra Garg appended his signature for New Delhi, formalizing an agreement both tax authorities," stated the Indian Embassy.
The signing took place on the sidelines of the 10th Joint Trade Committee meeting in Nairobi, a high-level bilateral forum co-chaired by India's Commerce Secretary Rajesh Agrawal and Kenya's Principal Secretary for Trade Regina Akoth Ombam.
One of the important things on the negotiating table was the pre-arrival information system, which will allow customs officials to receive and process shipment details before cargo physically docks, flagging suspicious consignments early while legitimate goods move through without unnecessary delays or expensive inspections.
Commissioner Nyawanda made it clear that "the MoU would fundamentally change how the two tax authorities share intelligence, enabling officials to assess cargo risks well before shipments reach Kenyan or Indian borders."
Another instrumental aspect of the discussions on pharmaceuticals, agriculture, digital infrastructure, fintech, energy, renewable energy, and manufacturing sectors, in which both nations have been trading for the longest time.
Additionally, both delegations tackled market access barriers and tariff issues that have historically slowed trade, agreeing to establish institutional mechanisms to resolve pending disputes and encourage more direct business engagement between Kenyan and Indian companies.
Cumulative bilateral trade flows between Kenya and India already stand at Ksh282.28 billion as of 2025, making this one of the most consequential economic relationships Kenya maintains with any country in Asia today.
Both sides reached a consensus that "The agreement will enhance customs cooperation, enable faster clearances, improve risk management, and facilitate smoother bilateral trade between India and Kenya."
This agreement was first hinted at by Prime Cabinet Secretary Musalia Mudavadi on April 12 during the 2nd Khumbhabhisheka Mahotsavam ceremony at Sri Kalyana Venkateswara Temple in Nairobi, which brought together a powerful expression of faith, culture and community.
During this elite event, Mudavadi noted that "Perhaps it's time that Kenya and India went a notch higher and discuss a free trade agreement," highlighted PCS Mudavadi.
The discussions extended beyond trade to maritime security, with both nations sharing the Indian Ocean trade Corridor, where the duo confirmed a joint military operation, with the arrival of an Indian guided-missile frigate, INS Trikand, which docked at the Port of Mombasa for a four-day port call aimed at strengthening military cooperation between India and Kenya.
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