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Uganda to report Kenya to EAC Secretariat for blocking its milk exports

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– Kenya imposed a ban on Ugandan milk in January in a move that saw 19 lorries ferrying milk from the Yoweri Museveni-led country turned away

– Efforts by Kampala to negotiate and resolved the stalemate with Nairobi has proved futile

– Agriculture CS Peter Munya said the move was part of a raft of reforms aimed at protecting local farmers from cheap milk imports

– Uganda has now resorted to seeking arbitration against the sanction from East African Secretariat during the regional pre-budget meeting scheduled for April in Arusha

Ugandan government is set to present a petition before East African Secretariat seeking to challenge a move by President Uhuru Kenyatta’s administration to ban her milk from entering Kenyan markets.

Kenya imposed a ban on Ugandan milk in January in a move that saw 19 lorries ferrying milk from the Yoweri Museveni-led country turned away.

President Yoweri Museveni. Uganda is set to file a petition before EAC Secretariat challenging Kenya’s move to impose sanctions on her milk. Photo.

Source: Facebook

Uganda has now resorted to seeking arbitration against the sanction from East African Secretariat during the regional pre-budget meeting scheduled for April in Arusha, Tanzania.

Uganda Revenue Authority (URA) outgoing commissioner for customs Dicksons Kateshumbwa, said they would present their grievances before the Secretariat so as the matter can be settled to avoid the brewing cold war.

“We shall discuss this matter when we go to Arusha for pre-budget meetings next month (April) so that we get an official stand,” Kateshumbwa told Daily Monitor.

Lato milk from Uganda being shipped off a truck. Photo. Daily Nation.

Source: UGC

The URA commissioner noted Uganda had in the last three months of the ban lost close to KSh 1.6 billion in milk exports.

According to available data has been shipping close to 450,000 litres of milk to Kenya before the sanction was imposed.

Efforts by Kampala to negotiate and resolved the stalemate with Nairobi has proved futile since January and Kateshumbwa is banking on the EAC Secretariat to come in handy and resolve the matter.

Farmers selling milk to a local processing firm. Photo: Daily Nation.

Source: UGC

Kateshumbwa earlier hinted an engagement with his counterpart in Kenya, Kevin Safari, hit a snag after he was informed: “The matter was beyond customs.”

The move came after KRA introduced a 16% Value Added Tax (VAT) on all milk products from the neighbouring country.

Kenyan farmers, especially those from Central Kenya, have been complaining about the low prices of milk before government intervened and raised the price from KSh 25 per litre to KSh 33 per litre.

Agriculture Cabinet Secretary Peter Munya said the move was part of a raft of reforms aimed at protecting local farmers from cheap milk imports as well as revive Kenya’s dairy sector.

Ugandan milk exporters that have been locked out of Kenya include Pearl Dairy, which produces Lato Milk and Lakeside Dairy, which manufactures Top Dairy milk.

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