The government of Uganda has petitioned Kenya and Tanzania over exportation of dairy products. The country’s Minister of Agriculture, Animal Industries and Fisheries, Mr Frank Tumwebaze said that the two countries have placed prohibitive levies on the products which could jeopardise trade relations and the East African Community spirit.
In a July 19 letter, the Minister of Agriculture, Animal Industries and Fisheries, Mr Frank Tumwebaze, has asked Kenya and Tanzania, after a flawed soft diplomacy strategy for the two countries, to allow Ugandan milk into their markets.
Since 2020, Uganda has struggled to have its milk products sold in the two East African member states, something the minister said is a barrier to the EAC spirit and regional trade relations. Mr Tumwebaze also raised concerns before the leadership of Kenya and Tanzania concerns of “ongoing taxes and levies charged on Ugandan dairy products” despite negotiation efforts.
Free on Board fees
“The TShs2,000 Tanzania (about Shs3,000) levy is prohibitive and hence has hampered Ugandan milk exports to Tanzania solemnly,” the letter addressed to the Minister of Agriculture, Livestock and Fisheries of Tanzania, Mr Adolf Mkenda reads in part.
Mr Tumwebaze also raised complains on the 1.75% of FOB (Free on Board), Tsh30, 000 (about 46,000 Uganda Shillings) application fees to the Tanzania Dairy Board and 18 per cent Value Added Tax for all dairy products. Ugandan milk products have also been restricted in the Kenyan market since January 2020.
“This despite the fact that many discussions were held between our countries on the subject and the promised actions of removal of the same were not implemented, particularly the TShs2,000 levy imposed by your ministry,” wrote Mr Tumwebaze.
“This is despite the fact that Ugandan government formally protested these actions by way of a protest note dated January 15,2021 and both countries are signed up to the East African Community framework,” Mr Tumwebaze wrote to Mr Peter Gatirau Munya, Kenya’s Cabinet Secretary, Ministry of Agriculture, Livestock, Fisheries and Co-operatives.
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