The Kenyan government reportedly revised its terms of trade with neighbouring Uganda.
Reports from The East African newspaper indicated that on Friday, December 20, the Government of Kenya slapped a VAT of 16 per cent on milk coming into the country from Uganda as part of measures to protect local dairy farmers.
The decision was reached after a bilateral meeting which also saw the Ugandan delegation adopt the same measures as Kenya.
The publication indicated that the meeting was held after a verification mission was carried out on the Ugandan dairy sector by both Kenyan and Uganda from December 16 to December 20.
The meeting was necessitated by a raft of complaints from stakeholders in the milk industry in Kenya, who raised concerns about the influx of Ugandan milk in Kenya.
Trade Principal Secretary Chris Kiptoo stated that Kenya was keen on protecting local farmers going forward.
"The meeting deliberated on possible measures to remedy the concerns of Kenya and more less agreed that VAT be imposed on milk imports into Kenya since the same is imposed by Uganda and noted that this may not raise unnecessary issues of discrimination or retaliation," he was quoted.
Reports from The East African also indicated that other concerns raised at the meeting included delays in clearing goods and issues of parking space at the port of entry, with special emphasis on border posts.
The meeting also laid rules on other products that are traded between the country in an effort to appease traders on both sides of the border.
"It was appreciated during the discussion that some of the levies be charged on both sides for either similar or different products. The meeting, therefore, underscored the need for harmonisation and holding of a meeting of all relevant ministries and departments to deliberate on the matter," Kiptoo was quoted.
