Oct 4, 2022

Mawazo Writing Africa

Writing about the main

Kenya fresh tax on Uganda eggs sets stage for another trade war

Kenya and Uganda are staring at another round of trade wars after Nairobi reinstated a tax on eggs imported from the neighboring country.

Uganda says Kenya now taxes its eggs at a tax rate of Ksh 72 ( $0.6) taxed. a tray bringing back a levy that was suspended last December following bilateral talks between Kampala and Nairobi.

Ugandian traders have protested the move, saying it does not bode well for trade between the two countries promises.

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“Kenya’s imposition of levies on Ugandan eggs is bad policy and violates the East African Community’s policy of free movement of goods and services from member states,” Godfrey Oundo Ogwabe , the head of Uganda National Das, Cross-Border Trade told the Daily Monitor.

Read:OBBO: Why Ugandan chicken is struggling in Kenyan markets causes

Kenya’s livestock PS Harry Kimtai said the charges could be a normal levy levied on imports.

“I don’t have specific information on the levy but this could its normal toll that the kenyanis che tax authority levies on imports,” he said.

The new trade dispute comes at a time when the two countries still have a long standing dispute over milk, after Kenya banned Uganda’s dairy products in 2019.

< p>Kenya had restricted exports of poultry and dairy products from Uganda for the past two years, straining relations between the two countries. The poultry problem was solved after Uganda threatened to ban Nairobi from exporting its goods to its landlocked neighbors.

The Ugandan cabinet in November ordered its agriculture ministry to identify and list Kenyan products banned from Kampala will be “soon” in retaliation for Kenya’s continued restriction of its agricultural products.

Read:Kaheru: Uganda-Kenya trade war is misguided protectionism

Kenya’s top agricultural exports to Uganda include palm oil valued at Ksh 7.2 billion (US$61.5 million) in 2020, sorghum (Ksh 1.4 billion or US$12 million), vegetables (Ksh 311 million or US$2.6 million) and legumes (Ksh 200 million or US$1.7 million). .

Kenya and Uganda have long had trade wars, but recent hostilities between the two East African Community states began to brew in December 2019, when Kenya stopped importing Ugandan milk, particularly the Lato brand.

In 2020, Kenya blocked Ugandan sugar and sugar cane, costing traders who exported billions of shillings of raw cane to sugar mills as the raw material had to rot on trucks at the border.

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