The Ministry of Trade & Regional Integration (MoTRI) has approved a directive establishing a simplified border trade regime with Kenya to regulate small-scale cross-border commerce. Officials said the measure aims to curb contraband while improving access to essential goods for border communities. It is also expected to create local jobs and strengthen diplomatic and economic ties with Kenya. Under the directive, trade will be monitored and quantified, with traders required to declare all goods bought and sold within the border zone. A border-trade licence is mandatory, and holders must not be engaged in formal trade elsewhere. Of the 50 approved items, some are subject to quantity limits while others have price caps set by the minister. The regime covers a wide range of goods, including livestock and basic cosmetics. It implements the Simplified Border Trade Regime agreement signed in December 2025 between Ethiopia and Kenya. Trade is permitted within designated border zones extending 50km into Ethiopia and 100km into Kenya from official crossing points. Monthly trade per trader is capped at 1,000 dollars or its equivalent in Birr or Kenyan shillings.

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