Lato milk saga: Museveni opposes retaliating to Kenya

President Museveni has opposed plans by some of his Cabinet minister and government officials to retaliate against Kenya which confiscated Lato milk products that were exported to the country by Pearl Dairies Limited.

Mr Museveni’s position comes at the height of a trade tensions between the two countries, following the confiscation of trucks of Lato Milk by the Kenya Bureau of Standards and the Kenya Revenue Authority.

Kenyan authorities said that the products were substandard.

 Kenya had earlier said that it would impose a 16 per cent Value Added Tax on the milk products.

According to Uganda Revenue Authority, at least 19 truck-loads of milk worth more than Shs1 billion  have either been returned to Uganda or seized in Kenya, even after being cleared by the government bodies for distribution in Kenya.

Through the ministry of Foreign Affairs, the Minister of Trade and Cooperatives, Ms Amelia Kyambadde wrote to the Kenyan government demanding the release of the milk to avoid possible retaliation by Uganda towards her goods that are imported to Uganda

But speaking to members of his ruling National Resistance Movement (NRM) at State House Entebbe on Friday, Mr Museveni said that countries that are looking towards economic and political unification of the region can’t be seen imposing trade restrictions.   

“I saw people say reiterate; I will not accept because President Kenyatta is a very friendly person, very clear-headed on business because he is a businessman himself. He’s also very clear-headed on African issues,” Mr Museveni said.

Mr Museveni added that there is need to explain to East Africans that protectionism is not the right way to grow their countries’ economies but rather the need to work to help those countries to produce cheaply by providing labour and other factors of production.

He said in the 60s before the East African Community disintegrated, Uganda, Kenya and Tanzania which then constituted the block, each produced commodities where they had a comparative advantage over.

Mr Museveni, instead, called for the fast-tracking of the East African federation. 

“This closing of borders is because the borders are there. [Rwanda closed her border with Uganda almost a year ago]. If people are united which borders are you going to close? We need to have an economic union for the whole of Africa and for the political union it should be those countries near each other like EAC. These borders are the ones allowing that confusion to go on,” Mr Museveni said.