Uganda’s sugar imports stuck at Busia border

Kenya recently accused Uganda of re-exporting sugar to the country that was imported at a time when the government had waived taxes on the commodity as it sought to correct a supply shortage.

Kampala

Kenya Revenue Authority has refused to release the Uganda sugar it impounded last year at Busia border despite conducting tests that have confirmed the country of origin. This is the fifth month sugar is held up in the Kenyan border since Kenya Revenue Authority intercepted an estimated 220,000 metric tonnes of sugar from Kakira and Lugazi Sugar works which were destined for Nairobi.

Impact
This is worsening the country’s quest to create free movement of goods within the East African region.
According to the local manufacturers, Kenya Revenue Authority (KRA) intercepted the sugar suspecting that it was duty-free sugar.

Kenya recently accused Uganda of re-exporting sugar to the country that was imported at a time when the government had waived taxes on the commodity as it sought to correct a supply shortage .

The situation was that the sugar would only be consumed in Uganda and if it was re-exported back to Kenya, a levy of 100 per cent would be charged by KRA. Both Kenya and Uganda belong to the Common Market for East and Central Africa (Comesa) as well as the East African community (EAC) where both enjoy a common market characterised by free movement of goods and services.

Kenya’s rejection of Uganda’s sugar onto its market did not go well with Uganda and Zambia as Comesa members because while they have allowed Kenyan goods free access to their markets, Kenya has decided to lock their goods out.

Whereas Zambia retaliated by also blocking Kenyan goods from entering her market, Ugandan officials have held several meetings with Kenya without any breakthrough being registered. “Whenever we took one step forward during a meeting, we took three steps backwards after the meeting, resulting into these contentions,” said Ms Olive Kigongo, the president of Uganda National Chamber of Commerce and Industry, in an interview. She added, “We are doing all we can to avoid mistrust between the two partner states from business to business meeting,” she said.

Government’s position
Asked why government is dragging its feet over the matter, Trade Minister Amelia Kyambadde said they were waiting for a response from Kenya. “They have been here twice. They have taken samples which have confirmed this is Ugandan sugar. We are waiting for their excuses, again,” she said on Wednesday.

sotage@ug.nationmedia.com