Nairobi — East African Community (EAC) Affairs Principal Secretary Caroline Karugu has welcomed the proposed replacement of individual national transit bonds with a single regional transit guarantee, describing it as a transformative step towards faster and more efficient cross-border trade.

Speaking on the initiative, Karugu said the reform reflects the vision of both the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA), which seek to remove barriers to trade and create a more integrated African market.

"The replacement of costly national transit bonds with a single, seamless regional guarantee is exactly the type of practical, efficiency-driven reform envisioned by the EAC and indeed AfCFTA: a continent where goods move with minimal delay and where policy supports, rather than obstructs, enterprise," she said.

The proposed system is expected to lower the cost of transporting goods across borders by eliminating the need for multiple national transit bonds, reducing paperwork and streamlining customs procedures for businesses operating within the region.

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Karugu noted that simplifying transit procedures would improve the movement of goods, enhance the competitiveness of regional businesses and strengthen economic integration among EAC partner states.

The initiative aligns with ongoing efforts by regional governments to facilitate trade, improve logistics and unlock the full potential of the African Continental Free Trade Area, which aims to create the world's largest free trade area by connecting markets across the continent.

If implemented, the regional transit guarantee is expected to ease cross-border commerce, reduce delays at border points and encourage greater investment by creating a more predictable and efficient trading environment for businesses.