Sudan moves to unlock disputed key trade corridor with Kenya

Trucks queue at the Malaba border on January 20, 2024. [Benjamin Sakwa, Standard] The construction of the 11-kilometre road linking Kenya and South Sudan to boost cross-border trade and cut the cost of transport between the two nations will start soon. This is after the government of South Sudan approved the Northern Corridor Transit Transport Coordination Authority's (NCTTCA) proposal to develop the stretch on the disputed Ilemi Triangle. NCTTCA says the construction of the Nadopal-Nakodok road link would improve inter-trade between Kenya and South Sudan, whose value stood at Sh29.5 billion in 2013. The cross-border road would also spur development in the remote parts of Kenya and South Sudan and cut the cost of transporting goods from Mombasa to Juba. The South Sudanese cargo transits through two border points via Kenya and Uganda, exacerbating congestion at Malaba and pushing the cost of transport through the roof. The strategic corridor traverses Kenya's north-western counties and into South Sudan, cutting across Uasin Gishu, Kakamega, and Trans Nzoia-key agricultural hubs for horticulture exports. Kenya has completed the Eldoret-Lodwar segment of the 960-kilometre Eldoret-Juba Highway, but the critical stretch, which straddles the Kenya-South Sudan border, remains unfinished. Experts say that Kenya's substantial investment in the Eldoret-Juba Road risks being underutilised if the impasse over the construction of the Nadopal-Nakodok is unresolved. It also promises to unlock the economic potential of West Pokot and Turkana, historically arid and marginalised regions grappling with high poverty levels and persistent security challenges. In an interview with Shipping and Logistics, NCTTCA Executive Secretary Dr John Deng said the lack of a final connection from Kenya into South Sudan remains a major trade bottleneck. South Sudan, Mombasa's second-largest transit market after Uganda, has substantial growth potential, but unresolved access bottlenecks risk undermining projected growth in cargo volumes. Dr Deng confirmed receipt of the concession letter from the government of South Sudan, allowing NCTTCA to operationalise the new cross-border route. He said: "We now await a corresponding endorsement from the Government of Kenya, which is currently undertaking consultations on the matter. Once implemented, this initiative will unlock fresh investment flows, optimise utilisation of the Kenya-South Sudan border, and significantly enhance bilateral trade, even as both nations continue pursuing diplomatic solutions to the protracted land dispute." "The economic value of this link is immense. We must first resolve the economic element and deal with political issues later." The contested Ilemi Triangle remains the central flashpoint in the impasse. Kenya committed to financing this section, but protracted land ownership disputes and persistent security threats have stalled the handover to contractors and jeopardised worker safety. Last year, South Sudan disavowed an agreement after Presidents William Ruto and Salva Kiir issued a joint communique on the intent to construct the Nadapal-Nakodok Road. "This has been a major bottleneck to attracting donor funding. Projects of mutual benefit require political consensus. Without it, even the World Bank has withdrawn," said Dr Deng. In South Sudan, transport agencies stand to benefit from a key section of the multinational road corridor, which is currently being upgraded by the Kenya National Highways Authority (KeNHA) with funding from the African Development Bank (AfDB). The works cover the Lesseru-Kitale and Morpus-Lokichar segments, strategically positioned to boost cross-border connectivity. The AfDB has committed Sh28.8 billion to the project, which includes the construction of a seven-metre-wide single carriageway, bitumen resurfacing, service and access roads, urban bypasses, and supporting socio-economic infrastructure. These upgrades are integral to the Horn of Africa Gateway Development Project (HoAGDP), a flagship initiative aimed at strengthening regional trade competitiveness through enhanced transport corridors. "This road will be a catalyst for trade between Kenya and Uganda," Dr Deng said, noting that once the border opens, transit cargo through the port of Mombasa is projected to surge from the current 1.6 million tonnes to 5 million tonnes by 2028-driven in part by inter-regional trade, including South Sudan's food imports from the Rift Valley and Mt Kenya regions. Following the Democratic Republic of Congo's integration into the Single Customs Territory (SCT) via its linkage with the Uganda Revenue Authority's platform-and with a pilot ready for roll-out-NCTTCA is now working to replicate the process for South Sudan. South Sudan is incurring heavy costs by trading through Mombasa outside the SCT, as cargo manifests list Mombasa as the destination, with clearing agents acting as intermediaries for cargo owners. Without systems to track cargo, importers face delays that make it impossible to clear goods within the 14-day free period. This forces them to pay substantial storage fees, leaving them exposed to collusion between rogue agents and CFS operators, Dr Deng observed. A high-level South Sudanese delegation recently concluded a landmark fact-finding mission to the Port of Mombasa, marking a decisive step toward strengthening regional trade ties and addressing persistent logistical hurdles affecting its importers. The delegation led by Justin Marona, senior member of the National Assembly's Public Accounts and Finance Committee, established that some traders remain unaware of documentation requirements and deadlines for storage and customs charges. Panda's Ltd official Dennis Ombok-who oversees South Sudan cargo-said this lack of awareness fuels costly delays, added fees, and congestion. The delegation also flagged steep container deposits from shipping lines-some reaching $10,000 (Sh1.2 million)-which strain finances, especially when delays occur in returning empty containers. They stressed the urgent need for a dry port or inland container depot in Juba to ease these bottlenecks. Meanwhile, security along the crucial Nimule-Juba corridor has emerged as a sticking point, with Kenyan transporters avoiding the route due to insecurity, which is pushing up transport costs. The Kenya Transporters Association (KTA) is pushing for an alternative route to ease the pressure on the Nimule-Juba corridor.

Sudan moves to unlock disputed key trade corridor with Kenya

Get Full Access for Ksh299/Week.

Related Topics

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

DIGGER JOBS

Digger Motors

Digger Real Estate

Sudan moves to unlock disputed key trade corridor with Kenya

Get Full Access for Ksh299/Week.

Related Topics

Trending Now

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS