Uganda’s dairy industry counting losses as Kenya blocks 114 export permits
Trade tensions between Uganda and Kenya continue unabated despite official efforts to promote more open and efficient cross-border commercial activities.
The two neighbouring countries committed to solidification of bilateral relations for mutual prosperity and development when President Yoweri Museveni visited Kenya last month. During the bilateral meeting at State House, Nairobi, the two leaders directed the two partner states to respect and fully implement the East African Community (EAC) custom Union Protocol and common market protocol.
However, according to reports in Uganda media, trade relations between the two countries continue to hurt Uganda dairy farmers through continuous bans and denial of export permits for Uganda dairy products.
Most affected
Ironically, Brookside Limited, owned by parent company Brookside Dairy of Kenya, is the most affected, with up to 114 export permits denied by the Kenya Dairy Board (KDB) since March last year.
Benson Mwangi, Brookside Limited’s General Manager said Uganda business community was delighted to read the communique signed by the two countries when the two heads of State met in Nairobi, as it believed it was key to unlocking trade barriers which have existed since March last year.
“However, a month later, we are yet to receive export permits for our long-life milk, which includes powder and ultra-high temperature (UHT) processed milk,” he told the media in Kampala. Although Kenya has been Uganda’s main market for dairy products, emerging trade restrictions has seen Kampala search for new markets, mainly in North and West Africa.
Mwangi said Brookside Limited had written several reminders to KDB on the pending permit applications, with no response forthcoming so far from the regulator. “We are, however, optimistic that KDB could soon implement the tenets of the communique by the two heads of state, which would unlock the impasse and allow us to resume export of our products,” he stated.
On March 6, last year, KDB stopped issuing permits for Ugandan dairy products in the Ken Trade system, despite a notice banning dairy imports issued by the same regulator having been rescinded by the Principal Secretary, State department for Livestock Development. In July last year, Brookside Limited, Uganda’s leading dairy processor laid off half of its staff following the restrictions on export opportunities to Kenya.
The firm said the failure by the Kenya government to grant export permits to its products had denied it over 75 per cent of its market, adding that blockades imposed by the KDB had made it difficult for it to continue servicing Kenya, a major market for its products, at optimum levels.
During the Dairy Month celebrations on June 1, the executive director of Uganda’s industry regulator Dairy Development Authority, Samson Akankiza said the value chain was one of the most dynamic sectors in the country.
