· Trade data from Central Bank, Kenya indicates that the imports from Uganda dropped to a seven-month low from a record high of Sh3.2 billion in February to Sh2.09 billion in the review period.
· An official delegation from Kenya is scheduled to visit Uganda this month to resolve the impasse on trade issues.
From Jan-August 2021, the value of imports from Uganda dropped by 34 per cent due to the on-going trade war between Kenya and Uganda in the last two years. The trade dispute that is running into the second year has taken a toll on the flow of goods.. Trade data from Central Bank, Kenya indicates that the imports from Uganda dropped to a seven month low from a record high of Sh3.2 billion in February to Sh2.09 billion in the review period.
An official delegation from Kenya is scheduled to visit Uganda this month to resolve the impasse on trade issues. Nairobi banned products like milk and poultry and Maize from Uganda. It was alleged that Maize imports from Uganda showed high levels of aflatoxin, which exceeded the required limit of 10 parts per billion. In September, Kenya cut sugar imports from Uganda by 79 per cent flaring up the dispute between the two countries. Against 90,000 tonnes that Kenya had earlier committed, and agreed by Trade Cabinet Secretary Betty Maina and her Ugandan counterpart in April, the Sugar Directorate told traders that only18,923 tonnes of sugar from Uganda will be allowed to be imported.
Uganda has been seeking alternative markets and has recently made some progress with Zambia. The Pearl Dairies, the largest processor of milk in Uganda have secured annual supplies of milk to Zambia. The company suffered major losses when Kenya stopped its products in 2019.
