Home East Africa Kenya and Uganda decide to put an end trade dispute

Kenya and Uganda decide to put an end trade dispute

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  • Kenya and Uganda has agreed in principle to sign a bilateral agreement that could put an end to the relentless trade dispute in sugar, fruit juices and pharmaceuticals between the two countries.
  • According to reports, Kenya has agreed to a demand by Uganda to allow more Ugandan sugar imports to Kenya.

Kenya and Uganda have agreed in principle to sign a bilateral agreement that could put an end to the relentless trade dispute in sugar, fruit juices and pharmaceuticals between the two countries.

According to reports, Kenya has agreed to a demand by Uganda to allow more Ugandan sugar imports to Kenya. Currently, Kenya allows only 11,000 metric tonnes of Ugandan sugar per annum.  The proposed agreement will be beyond its allocation by the Common Market for Eastern and Southern Africa (Comesa) council of ministers.  Uganda apparently has surplus sugar to export than the quota they have been allocated. Uganda’s domestic production of sugar from 11 functional sugar mills is about 510,000 metric tonnes. With the approximate local consumption of 360,000 metric tonnes per annum, it is left with a surplus of about 150,000 metric tonnes for export. Last year, Uganda signed an agreement with Tanzania to export sugar after months of negotiations since 2019. Kenya expects Uganda to reciprocate by abolishing duty on Kenyan juices and pharmaceuticals that have made these products uncompetitive in the Ugandan market.

 Kenya’s Principal Secretary in the Ministry of Trade Johnson Weru reported that  an official delegation led by the Ministry of Trade of Kenya plans to visit Uganda in April to close the deal.

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