By Ahmed Iyanda
Uganda has lost over $360,000 in
milk exports due to the consignment of milk seized by Kenyan officials on
alleged quality concerns, sparking a fresh diplomatic row between the two
neighbouring countries. The information was revealed by Kampala’s government
spokesman Ofwono Opondo, in a tweet.
According to The EastAfrican, Uganda, which is Kenya’s
trading neighbour in the region has issued a protest note expressing deep
concern about “illegal seizures of Ugandan-made milk products under the Lato
brand.” The Ugandan Ministry of Foreign Affairs said the seizure by Kenyan
authorities, which happened on January 2, has caused “heavy financial losses to
the company”
In the protest note, Uganda said the decision by Kenya
contravenes the “principle of good neighbourliness” and Kenya’s obligation
under the treaty establishing the East African Community (EAC) Customs Union
protocol, Common Market protocol, and the World Trade Organisation (WTO) trade
facilitation agreement.
“This has resulted not only into confiscation of 54,310
kilos of powder milk valued at $203,630 and 262,632 litres of UHT milk valued
at $157,106 but also have witnessed a sustained negative campaign against
Uganda’s milk and milk products, contravening the principle of good
neighbourliness and Kenya’s obligations under the Treaty Establishing the East
African Community, Customs Union Protocol and Common Market Protocol and the
WTO Trade Facilitation Agreement,” the Ugandan ministry said.
The protest note, directed to Kenyas High Commission to
Uganda on January 15, followed tense stakeholders meeting in Kampala. The
dialogue came after warehouses owned by Uganda’s Pearl Diaries and those of its
distributors in Nairobi were raided and its stock confiscated by officials of
Kenya’s Directorate of Criminal Investigations (DCI), without any court orders.
Between January 1 and 12, the DCI confiscated 54 tonnes
of powdered milk and 140,000 litres of Long Life milk from Pearl Dairies and
its distributors, citing nonconformity to standards and smuggling.
A review of documentation relating to the impugned
consignments by Uganda’s Trade Ministry, however, revealed that they had been
issued certificates of conformity by the Kenyan Ministry of Agriculture, Kenya
Dairy Board, Kenya Bureau of Standards and Kenya Revenue Authority, among
others.
The escalating trade rift between Kenya and Uganda over
milk exports is one of many cases in the East Africa region, which over time
has seen Tanzania shut it borders to Ugandan timber, sugar and maize, while
Kenya, which is open to imports of maize and beans from Uganda, has been
reluctant to open its market to manufactured products from Kampala.
Dr Gideon Badagawa, the Executive Director of the Uganda
Private Sector Foundation warns that unless resolved early, these trade tiffs
could affect the investment profile of the region, which is widely recognized
for notable economic growth driven by regional integration.
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