The Kenya Association of Manufacturers (KAM) stressed the need to remove trade barriers to boost cross-border trade between Kenya and Ethiopia.
Speaking during a Trade and Investment mission in Addis Ababa, the tycoons explained that three key challenges hampered trade including currency preferences, axle load limits and visa requirements for drivers at the Moyale border with Ethiopia.
The currency has an impact on trade between both countries which have to contend with the performance of their local currencies against the US dollar.
The decision to choose the preferential mode of currency for trade has posed a major challenge as both countries seek to cut on dollar dominance.
Currently, Ethiopian Birr is stronger than the Kenyan currency against the green buck, trading at 57.53 as compared to Kenya's Ksh132.82. If the traders choose to trade on Ethiopian currency, it means that a depreciation of the currency relative to the dollar would signify an annual increase in the prices received for exports.
The second issue involved visa requirements for the drivers which hinders the trade flow at the border.
Axle load limits cap the weight of a legal load limit for the vehicles crossing the border.
Flanked by a National Assembly delegation, the tycoons agreed to develop a harmonisation charter to iron out the cross-border challenges.
"There is a need to harmonize all these challenges being encountered in Kenya-Ethiopia Trade and to single out the policy issues that can be fixed through legislation so that we as lawmakers can handle that in Parliament," stated Kangema MP Peter Kihungi.
Delegation leader Peter Masara (Suna West) noted that there was a lot of goodwill among investors from both countries and there was the need for the two governments to streamline protocols and trade systems to reduce key barriers to Kenya-Ethiopia trade.
"I can assure you that you have unequivocal support from the National Assembly of Kenya and our attendance of this Mission is sufficient evidence of that," he pointed out.
The MPs noted that the recent operationalization of the Lamu Port offered logistical benefits to regional businesses as it would shorten the journey for imports destined for Ethiopia through Kenya.
The team also held discussions with Mesenbet Shenkute, a resident of the Addis Ababa Chamber of Commerce and Sectoral Associations.
