Kenya calls out barriers in EAC trade
By Wahinya.Henry, June 13, 2023
Kenya has raised concerns over unfair trade practices by some East African Community (EAC) member states at a meeting of trade ministers held in Arusha.
Among the new non-tarrif trade barriers (NTBs) is a complaint that Uganda is denying Kenya market access to EAC partner states under preferential treatment by charging full Common External Tariff (CET) of 35 per cent on juices originating from Kenya.
Cabinet Secretary for Cooperatives and MSMEs Simon Chelugui singled out Uganda for applying double standards regarding tax on excise books.
Uganda 18pc VAT
Uganda currently charges 18 per cent Value Added Tax (VAT) on exercise books from Kenya while Uganda manufacturers of the exercise books are VAT-exempt as per the provisions in the Uganda VAT Act.
Tanzania is also subjecting Kenyan animal and animal products to discriminatory treatment despite commitment to a bilateral deal to amend the Act and resolve the discriminatory charges by June 2022.
The protests were raised at the 42nd meeting of ministers on trade, industry, finance and investment chaired by Burundi’s Minister of Trade Marie Chantal Nijimbere, led to a directive from the chair that partner states resolve all outstanding NTBs.
The ministers were also informed that the Republic of South Sudan was still charging EAC citizens visa fees, specifically those from Rwanda and Burundi, this after citizens who had travelled to the country complained of visa charges at Juba International Airport.
Among the resolved NTBs included a 25 per cent excise duty imposed by Kenya on Ugandan table eggs, and a 25 per cent Kenyan excise duty on onions, potatoes, potato crisps and chips from Uganda that became effective 1st July, 2022.
The import ban and denial of market access by Kenya through non-issuance of import permits for powdered milk from Uganda as a means of cushioning the surplus production and low producer prices in Kenya was resolved.
On her part, Tanzania reported that Kenya was charging a 25 per cent excise duty on hatching eggs exported by some Tanzanian companies.