Kenya’s maize war, Uganda trade woes

Cool-headed Uganda

Shinyekwa, said Uganda is a cool headed player in the EAC and that has helped in keeping the trading bloc somehow at peace.

Indeed in January 2020, the government issued a protest note regarding the unfair treatment the country’s products were being subjected to in Kenya but the latter has never replied to it.

Prior to that, Birungi said, there has been every effort at the level of Heads of State to resolve the trade issues between Kenya and Uganda, with minimal success since Kenya has breached commitments while Uganda continues complying with EAC requirements.

This is contrary to Tanzanian President, John Pombe Magufuli, who for instance, in July last year, banned Kenya Airways and other Kenyan carriers from flying into its territory ostensibly to retaliate against Kenya’s move to remove Tanzania from a list of more than 30 countries allowed to resume international flights into Kenya from August 2020.

The ban was only lifted when the Kenyan government included Tanzania on a list of countries whose flights were allowed into its territory.

In the recent maize ban saga, Burundi also quickly followed Kenya to institute a six months ban on imports of Ugandan maize.

Everest Kayondo, the chairman of Kampala City Traders Association says there should be a mechanism put in place to punish a partner state that unfairly flouts the rules of trade including suspension from trading in the entire trading bloc.

But President Yoweri Museveni has publically said that he does not support retaliation. The question now is for how long this policy can hold.

Why and how Kenya is blocking Ugandan goods (Source: Uganda Manufacturers Association) 

• Questioning the Origin of Uganda’s products even those with valid certificates of origin
• Baseless claims that products from Uganda are counterfeit notwithstanding such products bearing Q mark issued by Uganda National Bureau of Standards;
• Claims that goods from Uganda are smuggled into Kenya hence evading taxes;
• Institution of permits that water down the very essence of the EAC Common Market through unilateral restrictions against Uganda originating goods;
• Structured and institutionalised harassment of Kenyan traders and dealers in Ugandan originating goods with the view to discouraging dealing in Uganda originating goods, especially poultry, milk, sugar;
• Impromptu stop overs and rampant raids on Ugandan warehouses or warehouses with Ugandan goods;
• Issuance of Quotas to Ugandan made Sugar which contradicts the EAC Common Market Protocol and;
• Institutionalising untold uncertainty in business relations defined by unfounded allegations that prompt unending verifications whose findings that always vindicate Uganda never become basis for once and for all resolution of trade challenges. Example, Sugar and Milk impasse reigns despite several verification missions

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