Kenya risks suspension from an international body after accusations of disregarding some of the rules set up by the trading bloc.
The country could face action from the Common Market for Eastern and Southern Africa (COMESA) after ignoring the body’s regulation on the importation and the exportation of sugar.
According to the East African, the importation of sugar, that turned out to be counterfeit, into the country was done without the approval from COMESA.
[caption caption="Bags of contraband sugar imported into the country"]
[/caption]
Under the rules of the bloc, any sugar imports from non-member states attract a common external tariff (CET) of 25 percent.
However, the country unilaterally passed a domestic law allowing the importation of duty-free sugar.
While allowing the importation of duty-free sugar, Kenya Revenue Authority (KRA) is alleged to have blocked sugar from some COMESA members such as Mauritius prompting the intervention of the Secretariat.
It is claimed that the country denied Mauritius a license to export sugar pending the conclusion of investigation on contraband sugar in the market.
“Kenya should have informed other member states before passing the law on to import sugar from the outside world, failure to do this caused challenges forcing the secretariat to step in,” noted Francis Mangeni, Director in Charge of Trade and Customs at the COMESASecretariatt.
Kenya is also expected to explain the decision during 20th COMESA head of states summit in Lusaka, Zambia from July 9 to July 19, 2018.
Suspension from the bloc would a huge blow as the members consume about 12 percent of Kenya’s total exports including tea, coffee, horticulture, clothing accessories, iron and steel.
[caption caption="Francis Mangeni, COMESA Trade and Customs Director"]
[/caption]
