- The ongoing trade disputes between Kenya and Uganda are likely to escalate with the recent decision of Kenya to cut sugar imports from Uganda by 79 percent.
- According to a directive from the Sugar Directorate of Kenya traders will only be allowed to import 18,923 tonnes of sugar from Uganda against 90,000 that Kenya had earlier proposed to be shipped from its neighbour.
The on-going trade disputes between Kenya and Uganda are likely to escalate with the recent decision of Kenya to cut sugar imports from Uganda by 79 percent. According to a directive from the Sugar Directorate of Kenya traders will only be allowed to import 18,923 tonnes of sugar from Uganda against 90,000 that Kenya had earlier proposed to be shipped from its neighbour.
In a meeting between Kenya’s Trade Cabinet Secretary Betty Maina and her Ugandan counterpart in April, it was mutually agreed that Uganda will be allowed to export 90,000 tonnes of sugar to Kenya once the verification mission on the country of origin is done. This would have given Uganda 43 percent share of the total imports by Kenya from the Comesa region.
Kenya had signed a deal with Uganda to import surplus sugar into the country three years ago. Kenya delayed the implementation of the agreement until late last year when it was allowed to ship only 20,000 tonnes out of the 90,000 tonnes surplus. Kenya has been alleging that the surplus sugar from Uganda originated from third party countries.
The revised quota announced this week, the Southern African countries will account for the majority of imports under the Common Market for Eastern and Southern Africa (Comesa) window. eSwatini tops the list with 68,959 tonnes followed by Zambia at 41,152 and Mauritius 36,036.
Another bilateral issue has been on milk imports. Last month, Uganda protested Kenya’s delay in abolishing the seven percent levy on milk imports. Ugandan Minister of Agriculture, Animal Industries and Fisheries, Frank Tumwebaze officially wrote to Kenya and Tanzania to allow Ugandan milk into their markets.
