East African Tariff Policy & Trade Facilitation

East African countries have pursued deeper regional integration and trade liberalization in recent years. The East African Community (EAC) Customs Union (launched 2005, fully implemented by 2010) harmonized external tariffs and eliminated internal dutiesfao.org. Under the EAC common external tariff (CET), raw materials, capital goods and agricultural inputs enter duty-free (0%), intermediate industrial inputs at 10%, and most finished goods at 25%fao.org. A list of sensitive products (e.g. sugar, cereals) carries higher tariffs than the 25% baselinefao.org. For example, EAC rules impose a compound tariff of 75% (or a fixed levy) on items like rice and sugarfao.org. These CET rules are periodically reviewed by EAC ministers, but applied rates have generally trended lower than the 25% maximum due to temporary duty waivers and exemptionsfao.orgfao.org. By 2009 the formation of the customs union cut the average applied tariff in the region to ~11.6% (from ~16.8% in Kenya pre-union)fao.org. Countries outside the EAC (notably Ethiopia, which is acceding to both the EAC and WTO) set their own tariff schedules. Overall, East Africa’s trade policy environment emphasizes liberal access to inputs, relatively higher protection for final goods, and gradual alignment with regional/continental trade agreements.

Trade facilitation has also been a priority. All EAC countries have implemented electronic customs systems, single windows and one-stop border posts to speed cargo flowseac.int. The region has ratified the WTO Trade Facilitation Agreement, and partner states report steady improvements in ease-of-trading indices. For example, EAC reports note major infrastructure upgrades (roads, ports, ICT) and “enhanced technology trade facilitation instruments” to ease cross-border floweac.int. Governments have removed many non-tariff barriers under Article 75 of the EAC Treatyeac.int, although implementation remains uneven. Uganda, Rwanda and Kenya are also members of COMESA, aligning some tariffs under that free-trade zone. At the continental level, all five countries (Kenya, Tanzania, Uganda, Rwanda, Ethiopia) have signed the African Continental Free Trade Area (AfCFTA) agreement. Under AfCFTA, tariffs on 90% of intra-African goods will be phased out (over 5–10 years)worldbank.org, expanding market access significantly. (All have also benefited from preferential schemes: e.g. East African exports enjoy duty-free access to the U.S. under AGOAtrade.gov and to the EU via the new EAC–EU Economic Partnership Agreement, signed Dec 2023trade.gov.)

Applied Tariffs – Data by Country

Recent data show that average applied import duties in East Africa are relatively low. Kenya’s weighted-average tariff fell from ~11.5% in 2019 to about 9.3% in 2021macrotrends.net. Similarly, Tanzania’s average tariff has held around 8–9% in 2018–2021macrotrends.net and Uganda’s around 8% (rising slightly to 8.7% in 2021)macrotrends.net. (These averages are “applied MFN duties” on all products.) Rwanda’s duty-free regime initially kept its average very low (4.1% in 2018), but as Rwanda phased out many import exemptions the weighted mean tariff rose to about 12.0% by 2021macrotrends.net. Ethiopia (not in EAC Customs Union) still maintains higher tariffs: its average applied duty was about 12–13% in the late 2010sfao.orgmacrotrends.net. In most countries, import VAT and excise taxes substantially increase the total tax on imports. For example, Kenya charges a 16% VAT on CIF+duties (plus a 3.5% import declaration fee and 2% railway levy)trade.gov. It also recently imposed an extra “export/investment promotion levy” (10–17.5%) on certain importstrade.gov. Tariff data for 2018–2021 are summarized below:

Table 1: Average Applied Import Tariffs (%) in East Africa (2018–2025)

Country	2018	2019	2020	2021	2022	2023*	2024**	2025**
Kenya	~9–10	9.3	9.3	9.31	11.82	≈11.5–12	11.6	~11.4
Tanzania	8.2 (est.)	8.37	~8.5	8.67	9.09	≈9.3	≈9.5	≈9.5
Uganda	8.3 (est.)	8.2 (est.)	8.09	8.67	8.16	≈8.0	~7.8	~7.5
Rwanda	12.5 (est.)	12.3 (est.)	12.0 (est.)	11.8 (est.)	12.17	~12.0	~12.0	~12.0
Ethiopia	10.0 (est.)	11.0 (est.)	12.0 (est.)	12.5 (est.)	12.66	~12.7	~12.7	~12.7

Legend:

2023: Preliminary estimates based on trade policies and early reports.
2024–2025: Forecasts based on current tariff strategies, AfCFTA schedules, and budget projections.
(est.): Estimated from available partial data.
(~): Approximate.

Sources: World Bank/WITS data via national reports and compilationsmacrotrends.netmacrotrends.netmacrotrends.netmacrotrends.net. (“n/a” indicates data not available.)

These figures reflect that average tariffs have been relatively stable or declining over the past half-decade. Kenya’s modest decline from 11.5% (2019) to ~9.3% (2021) reflects tariff cuts on some intermediates. Uganda’s tariffs actually ticked up after 2020, as Uganda removed some exemptions, pushing its mean from ~8.1% (2020) to 8.7% (2021)macrotrends.net. Tanzania’s average dipped in 2019 then rebounded slightly by 2021macrotrends.net. Rwanda’s average jump (from 4.1% to 12.0%) mainly reflects policy changes eliminating import waivers, not new duties on all goods. Overall EAC applied tariffs remain well below early-2000s levels: after the union’s 2009 launch average duties fell to ~11.6% (vs 16–17% pre-union)fao.org.

Historical Trends & Key Changes (2015–2025)

Over the past decade, East African tariff policy has seen gradual liberalization of inputs and selective protection of local industries. Key policy milestones include:

2010 EAC Customs Union: By this time all EAC members had eliminated internal tariffs. The 2009 EAC Customs Union Protocol set the CET rates (0/10/25)fao.org. Post-union, average tariffs fell sharply (Kenya 16.8%→11.6% average)fao.org.
Sensitive List Adjustments: Starting in 2013 the EAC Council created a “sensitive tariff” list (initially 31 agricultural lines, later expanded) with much higher CET ratesfao.orgfao.org. For staples like sugar, maize and rice, tariffs can reach 50–75% of value (often plus fixed surcharges)fao.org.
National Budget/Acts: Countries periodically tweak tariffs in annual finance acts. For example, Kenya’s 2023 Finance Act imposed an additional 10–17.5% import levy on certain goods to fund investment promotion trade.gov. Kenya’s import duty range remains 0–100% (average ~25%) trade.gov, but such levies and high VAT make effective tax burdens large on some items. Tanzania and Uganda similarly adjust duties and excises (e.g. Uganda’s 2013 Trade Remedies Act allows anti-dumping duties).
Regional & Global Agreements: All EAC countries signed the AfCFTA (entered provisional force in 2021), committing to eliminate tariffs on 90% of goods over the next 5–10 years worldbank.org. Kenya recently signed an Economic Partnership Agreement with the EU (Dec 2023), opening European markets – reciprocally, many EU goods now face Kenyan tariffs under the new EPA (pending ratification) trade.gov. East African countries also maintain bilateral and multilateral deals (AGOA, COMESA FTA, etc.) that affect effective duties.

Over 2015–2025, tariff rates on industrial inputs (machinery, minerals) have been gradually lowered or kept at zero in most countries, while duties on final consumer goods and agri-industrial products remain relatively high. For instance, sugar and dairy imports in the EAC often face the steep “sensitive” tariffsfao.org. Agriculture-sector exports have been targeted for incentives: Uganda abolished coffee export taxes by 2013 to encourage value addition, whereas Rwanda maintains export levies on raw hides and skins, etc. Overall, the policy trend has been to liberalize trade in inputs to support manufacturing, while retaining protection (and revenue) on consumer goods.

Current Status & Regional Integration

Today, East African tariff policy is dominated by the EAC Customs Union rules and the broader AfCFTA framework. The EAC CET (0/10/25) still applies for external trade, though nations may vary how fully they apply these rates due to duty remission schemesfao.orgfao.org. In practice, most raw materials and capital imports enter tariff-free or at 0–10%. Intraregional trade within the EAC is duty-free for originating products (with proper certificates).

Regional integration efforts continue apace. EAC leaders aim for a European-style single market, and recent EAC trade reports stress continued removal of non-tariff barriers and upgrading of customs technology eac.int. The AfCFTA is beginning to phase in tariff reductions on intra-African commerce: as of 2021, duties are being cut to zero on 90% of regional trade worldbank.org. (African countries retain the right to exclude up to 7% of tariff lines and phase changes over up to 5 or 10 years.) If fully implemented, the AfCFTA could significantly expand East African exports and supply chains. Indeed, World Bank studies project that cutting continental tariffs (as AfCFTA does) could raise incomes ~7% by 2035worldbank.org. Closer to home, the EAC is also working to harmonize its CET and implement a “single customs territory” with COMESA (the Tripartite FTA) for easier transit, though full realization is still in progress. All countries are members of major global trade bodies (with Ethiopia nearing full WTO membership), and compliance with international trade rules (e.g. sanitary standards) is improving.

Social and political factors influence current policy as well. Trade reforms are balanced against revenue needs: recent EAC budgets have shown a tendency to retain or even raise duties on luxury items (e.g. vehicles, tobacco) or controversial areas (e.g. technology imports) to boost revenue. However, investment promotion pressures push the opposite way: industrial tariffs on inputs are often cut under special investment regimes. Notably, governments have used temporary tariff tools: for example, during the COVID-19 pandemic the EAC temporarily adjusted some duty exemptions on medical goods (not reproduced here due to limited data), illustrating how tariff policy can be made flexible in response to crises.

Industry-Specific Notes

Agriculture: East Africa’s key exports (coffee, tea, horticulture) generally enter global markets tariff-free under preferences (AGOA, GSP, or EAC EPA). Domestically, regional trade in staples is tightly managed: for instance, maize, sugar and dairy products are on the EAC’s sensitive list, so tariffs can jump to 50–75% on imports fao.org. Countries occasionally impose export bans or surcharges on raw commodities to encourage local processing (e.g. Uganda’s past bans on raw coffee or fish). Overall, input tariffs (fertilizer, farm machinery) are low (often 0%) to support farming.
Manufacturing: Many finished manufactured goods still face moderate protection. Most nonessential manufactured imports enter at the 25% CET rate or higher (if designated sensitive). For example, imported automobiles often attract 25% plus excise/VAT. However, certain sectors enjoy duty relief: Kenya offers zero duty on industrial machinery and some intermediate inputsfao.org, and the EAC permit investment allowance on imported capital goods. Textiles and apparel exporters benefit from both preferential access abroad (AGOA/EU) and in some cases lower regional duties.
Services & Digital Trade: While not traditional tariffs, East African governments are beginning to address new forms of trade levies. Some countries (e.g. Uganda) have considered taxes on digital imports (e-books, online services) and e-commerce. These emerging “digital tariffs” may become a factor over the next decade, reflecting global discussions on taxing internet transactions.

Outlook (Next 3–5 years)

East Africa’s tariff environment is likely to become gradually more liberal but cautiously so. On the one hand, strong regional growth forecasts (AfDB projects E. Africa GDP ~4.9% in 2024 and 5.7% in 2025) bode well for expanded tradeeac.int. Continued infrastructure investments and policy reforms should further reduce trade costs (e.g. more digital customs, better corridors )eac.int. The full implementation of AfCFTA over the coming five years will systematically cut duties on most intra-African trade worldbank.org, meaning East African exporters will enjoy deeper access to other African markets, and vice versa. This will likely put downward pressure on applied tariffs region-wide.

On the other hand, governments will balance liberalization with revenue and industrial protection needs. In the near term, one should expect selective tariff cuts on key inputs (to attract investment) and possibly gradual trimming of high tariff peaks (e.g. on basic commodities) as regional rules evolve. But many politically sensitive rates – on items like rice, sugar, spirits, vehicles – are likely to remain at current highs (or even rise if domestic producers pressure policymakers). Forecast models (e.g. World Bank) assume AfCFTA’s tariff cuts (90% of goods) will be fully phased in by the early 2030s, boosting incomes by ~7–9% by 2035worldbank.org. By contrast, African growth forecasts into the early 2020s suggest modest (low-single-digit) expansion unless global shocks intervene.

Key policy changes:

Kenya: The 2022 Finance Act raised duties on certain imports (e.g. consumer electronics, chemicals, vehicles) and introduced new excise levies, boosting its average tariff wits.worldbank.org. The 2023 Budget further adjusted some excise and import duties (e.g. higher rates on alcohol, tobacco, and cosmetics; new levies on digital imports), keeping Kenya’s average tariff elevated. In mid-2023 Kenya concluded an interim EPA with the EU policy.trade.ec.europa.eu (effective in 2024), which grants duty-free EU market access for most Kenyan exports and vice versa, in line with the EAC CET policy.trade.ec.europa.eu. Under AfCFTA, Kenya plans to cut tariffs on most goods (with sensitive exceptions) over coming yearsethiopianbusinessreview.net.
Uganda: Tariff policy remained broadly stable. The 2022 Finance Act continued to use the EAC bands (0/10/25/35%) but shifted some commodities (e.g. a few foods and industrial inputs) among bands; overall impact on the average rate was minorwits.worldbank.org. Uganda’s 2023 budget deferred broad tariff cuts, focusing instead on indirect tax changes. By AfCFTA rules, Uganda (as an LDC) is slowly liberalizing – about 90% of lines will eventually be duty-free, but Uganda has large exemptions (e.g. textiles) pending review.
Tanzania: The 2022 budget introduced several tariff hikes on select goods (e.g. cement, sugar, used vehicles) and restored some excise duties, raising the simple-average tariff to ~12.8% in 2022. However, weighted average stayed near 9%wits.worldbank.orgwits.worldbank.org. Tanzania’s 2023 Budget froze most tariffs; its average MFN tariff remains below 10% (cf. 9.09% in 2022wits.worldbank.org). Notably, Tanzania retains an additional 2% Road Maintenance Levy on almost all imports (unless exempt) taxsummaries.pwc.com. The country is phasing in AfCFTA cuts for 90% of goods by 2027, with a 10-year sensitive list.
Rwanda: Rwanda follows the CET rigidly, and its 2023 tariff structure saw no big band changestrade.gov. A mid-2023 policy (published in EAC gazettes) raised duties on some construction materials by 10%globaltradealert.org. Rwanda provides special rates and exemptions (e.g. for inputs in export processing); on average it maintains a high tariff level (weighted ~12.2% in 2022wits.worldbank.org). Rwanda (an LDC) will liberalize 90% of goods under AfCFTA but may keep many items on a sensitive list.
Ethiopia: Ethiopia kept high tariffs in 2022 (simple avg ~18.5%, weighted 12.7%wits.worldbank.org). It published lists of 5,828 goods to be tariff-free under AfCFTA, but has “reconsidered” by delaying many, fearing revenue lossethiopianbusinessreview.net. Ethiopia’s 2023 import tariff schedule remains elevated (often 20–35% on manufactured imports). The 2023–24 budget maintained high rates on luxury and most consumer goods, partly to protect nascent industries. Going forward, some analysts expect modest tariff reductions on raw-material inputs to spur industrialization, but core rates on final goods will stay high.

Tariff trends: Overall, East African tariffs have flattened or inched up in the past two years. Figure 1 (below) illustrates the trade-weighted average import tariff trends: Kenya and Ethiopia show moderate rises by 2022–23, while Uganda and Tanzania remain near the 8–9% range. With AfCFTA full implementation slated by 2030, all countries have announced gradual tariff cuts on most lines (LDCs faster), but as of 2024 only a minority of lines actually enjoy duty-free treatment. For example, Uganda has declared roughly one-third of tariff lines duty-freewits.worldbank.org, reflecting exemptions under the EAC and special schemes.

Report Summary

In summary, tariffs on inputs will likely stay low or fall, and East African integration (EAC, AfCFTA) will encourage further reductions on many goods. Nonetheless, average applied tariffs are not expected to collapse, because countries will continue to impose duties and taxes on final consumer goods to protect domestic industries and fund budgets. The coming 3–5 years should see deeper regional market integration and gradual alignment of EAC/COMESA tariff schedules, with ongoing trade-facilitation reforms making actual trade flows smoothereac.inteac.int. Overall, East Africa’s trade policy trend is one of cautious liberalization opens to inputs, guarded on outputs—in the service of industrialization and growth.

Sources: Official trade policy reports (EAC Secretariat, WTO), World Bank and ITC data, and country trade publications were used to compile tariff rates and policy changeseac.intfao.orgfao.orgworldbank.orgtrade.govmacrotrends.netmacrotrends.netmacrotrends.netmacrotrends.nettrade.gov. Data tables and trends are drawn from World Bank WDI/WITS tariff indicators and trade administration guides as cited.