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Lungalunga Emerges as Kenya’s Next Trade Battleground in Regional Power Shift
By Administrator
Published on 05/05/2026 13:32
Business

 

KWALE, County— Kenya is turning its attention to a quiet coastal border post that could determine its future in East Africa’s intensifying trade race.

As regional competition heats up—particularly from Tanzania—Lungalunga is fast being recast from a peripheral crossing into a frontline economic zone.

Top government officials now see the Kenya–Tanzania border point not just as a transit route, but as a potential lever to reclaim lost ground in logistics and regional commerce.

During high-level talks in Kwale County, State Department for East African Community Affairs Principal Secretary Caroline Karugu and Governor Fatuma Achani signaled a shift in strategy—one that places counties at the center of cross-border trade revival.

At stake is Kenya’s slipping dominance.

While the country still generated over Sh321 billion in trade with East African Community partners last year, rivals—led by Tanzania—are rapidly closing the gap. The Port of Dar es Salaam, in particular, has been drawing cargo flows that once moved through Kenya, raising concerns about long-term competitiveness.

Yet within that challenge lies opportunity.

Lungalunga, which links Kenya’s coast to Tanzania’s commercial hubs of Tanga and Bagamoyo, brought in just over Sh1 billion in revenue last year—a modest figure that officials say barely scratches the surface of its potential.

“We are looking at Lungalunga not just as a border point, but as an economic corridor,” Karugu indicated, pointing to plans to streamline tariffs, ease regulatory hurdles, and upgrade transport systems.

For Kwale County, the renewed focus could be transformative.

Governor Achani framed the initiative as more than a trade intervention—casting it as a chance to unlock jobs, attract investment, and finally integrate the region into the broader East African economy.

 

If successful, Lungalunga could evolve into a bustling trade hub—one that not only reverses Kenya’s recent losses but redefines how border regions contribute to national growth.

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