Uganda, Kenya and Rwanda have begun piloting a unified customs guarantee system designed to streamline regional cargo transit and unlock nearly $2 billion in capital previously tied up in multiple national bonds.
The initiative, known as the EAC Customs Bond or EACBond, allows transporters to move goods across multiple partner states using a single guarantee. Previously, a truck traveling from Mombasa to Kampala or Kigali required separate national bonds at every border crossing to ensure duties and taxes would be paid if cargo was lost or diverted.
Rebecca Kadaga, Uganda’s minister for East African Community affairs, said the reform would cut unnecessary costs and speed up trade across borders.
“This will empower our business community, boost exports and strengthen participation in the regional economy,” Kadaga said.
EAC Secretary General Veronica Mueni Nduva noted that more than $35 billion worth of goods move through regional corridors annually. She said the new bond would reduce operational costs and enhance transparency through real-time digital tracking.
The EACBond replaces a fragmented system where many traders relied on the Comesa Regional Customs Transit Guarantee. That system was limited because several EAC states—including Tanzania, South Sudan and Somalia—are not members of Comesa. The new bond is tailored specifically for the EAC Single Customs Territory and covers transit cargo, warehousing, temporary imports and shipping containers.
The insurance sector is expected to manage the implementation. Ibrahim Kaddunabbi Lubega, chief executive of the Insurance Regulatory Authority and chair of the East African Insurance Supervisors Association, said regulators will conduct actuarial studies during the current pilot phase to refine the system.
The project, which has been under development for more than a decade, is integrated with the Regional Electronic Cargo Tracking System to allow for continuous monitoring and automated compliance checks.
While the pilot phase is currently underway in Uganda, Kenya and Rwanda, the system is expected to reach full operationalization across all partner states following the trial period.
