Kenya and Uganda are locked in another trade dispute after Uganda protested a 79 percent cut on its scheduled sugar exports to Kenya.
Uganda’s Agriculture Minister Frank Tumwebaze on Thursday noted that the country was not pleased with the restriction put on its sugar exported to Kenya.
“We need an honest conversation about these trade restrictions from your side,” the minister said in a tweet addressed to Kenya’s agricultural CS, Peter Munya.
The statement by Tumwebaze follows a notice by the Sugar Directorate in Nairobi that allowed traders to import only 18,923 tonnes of sugar from Uganda, down from 90,00 tonnes that the two countries earlier agreed on.
In April, the two countries agreed that Uganda would export 90,00 tonnes of Sugar to Kenya after verification of the country of origin of the commodity is completed.
A deal to allow Uganda to export its surplus sugar to Kenya was agreed upon three years ago but Nairobi delayed the plans until late last year when it allowed the importation of 20,000 tonnes of the 90,000 tonnes surplus that it had requested.
“Kenya imports about 450,000 tonnes of sugar. If your sugar board (trade police) allowed Uganda to export to Kenya it’s 150,000 tonnes still your sugar import demand would remain unmet. So nothing explains the restrictions on Uganda,” Tumwebaze said.
“Should we also start a board to restrict or give permits to Kenyan margarine and plastics? Yes, we could check on their standards too!”
The two East African Countries struck a deal in April to resolve the trade dispute following a seven-day visit by Kenyan government officials to Kampala.
Apart from discussing non-tariff barriers (NTBs) affecting trade between the two countries, Kenyan officials agreed that the sugar exported from Uganda was wholly produced in Uganda.
Following the meeting, the two countries agreed that Kenya would import up to 90,000 metric tonnes of Ugandan sugar per year from July 1, 2021.
The countries also agreed to scrap off a 35 percent excise duty imposed on liquid petroleum gas cylinders manufactured in Uganda
On its side, Uganda agreed to abolish a 13 percent excise duty on Kenya-manufactured goods and scrapped off a 12 percent verification fee on pharmaceuticals manufactured in Kenya.
In addition, Uganda further abolished 18 percent VAT charged on processed poultry meat imported from Kenya and zero-rate drugs manufactured in Kenya.
Despite the agreements, the two countries have reneged on implementing some of the agreed pledges, something that has triggered a trade dispute between the two countries.
