Kenya cuts Uganda’s sugar export quota by 79 per cent
Kenya has about two years now blocked a number of exports from Uganda including sugar. PHOTO | FILE
What you need to know:
- However, Uganda Sugar Manufacturers Association had then argued that even allowing in the 90,000 tonnes had been delayed contrary to an April agreement in which the two countries had discussed to relax trade blockades.
Kenya has cut Uganda’s sugar imports by about 71,077 tonnes, which represents a massive reduction of 79 per cent.
Data from the Kenya’s Sugar Directorate, noted that traders would only be allowed to import 18,923 tonnes of sugar from Uganda down from 90,000 tonnes.
This comes amid apprehension with Ugandan sugar manufacturers accusing authorities in Kenya of frustrating a process that has been under negotiation for almost two years now.
Recently, Kenya had indicated it would open up to sugar exports from Uganda, allowing in just 90,000 tonnes.
However, Uganda Sugar Manufacturers Association had then argued that even allowing in the 90,000 tonnes had been delayed contrary to an April agreement in which the two countries had discussed to relax trade blockades.
Mr Jim Kabeho, the Uganda Sugar Manufacturers Association yesterday said the massive reduction of the quota was a disappointment, noting that this was against the 90,000 tonnes agreement that had been reached earlier.
“This is a crisis, and we have to go back on the drawing board. We don’t know why Kenya, our main trading partner has taken this direction,” he said.
In April, Kenya’s Trade Cabinet Secretary Betty Maina led a delegation to Uganda, holding a number of meeting with government officials in regard to different issues.
During the meetings, it was agreed that Uganda would be allowed to export 90,000 tonnes of sugar to Kenya as soon as the verification mission on the country of origin is completed.
However, the new quota is a shift, with Kenya awarding larger quotas to other countries in Southern Africa under the Common Market for Eastern and Southern Africa (Comesa).
For instance, in the new schedule, eSwatini will export 68,959 tonnes while Zambia will export 41,152 tonnes. Mauritius will export 36,036 tonnes.
At 90,000 tonnes, Uganda had been the biggest contributor, accounting for 43 per cent of total imports by Kenya from Comesa. Kenya had allowed to import Uganda’s surplus sugar but the deal was delayed until late last year when out of 90,000 tonnes only 20,000 tonnes were allowed into the country.
Uganda currently has sugar stockpiles of about 150,000 tonnes that have been worsened by export blockades from Kenya and Tanzania.
According to Bank of Uganda, sugar exports fell in June to $11.52m (Shs40.8b) up from $12.94m (Shs45.9b) in May.
Blocked
Uganda’s sugar has suffered rejection in Tanzania and Kenya. The two countries, which are some of Uganda’s largest trade partners in East Africa, have separately placed blockades on the country’s sugar exports on claims that traders were importing and dumping cheap sugar into their markets.
