President William Ruto on Monday, May 29, told delegates attending the African Private Sector Dialogue on the African Continental Free Trade Area (AfCFTA) how his Ugandan counterpart called him while angry.
Ruto revealed that Museveni was angered by Kenyan government officials he accused of bureaucracy in handling goods from Uganda.
The Head of State wondered why Kenyan officials were becoming bureaucratic with traders yet Uganda was Kenya's second-largest trading partner.
"Ugandan President called (me) and he was not happy because of the bureaucratic tendencies of some of our government officials yet Uganda was the second largest trader partner to Kenya," Ruto stated while warning government officials from both countries to think of each other as partners.
Ruto, therefore, warned African leaders and Kenyan officials, in particular, that there was a need for cooperation in trade since it would yield mutual benefits.
He also challenged African Private Sector Dialogue on the African Continental Free Trade Area (AfCFTA) to think of Africa, not as individual countries.
"A good example is what Kenya, Uganda, Ethiopia, Tanzania, Rwanda and Eritrea are doing, where we are seeking an agreement to create a regional airline that would be mutually beneficial to all of us," Ruto revealed.
The Head of State urged partner countries to remove non-tariff trade barriers in order to establish a conducive business ecosystem that will inspire growth and development across partner states.
As members of the East African Community (EAC), Kenya and Uganda have had a long history of trade and economic cooperation.
In 2022, according to Statistics by the Central Bank, Kenya exported goods worth Ksh46. 77 billion ($386.3 million), representing a dip of 8.5 per cent during the half-year compared to a similar period in 2021.
The main exports from Kenya to Uganda are cement, palm oil, and coated flat-rolled iron. The main exports from Uganda to Kenya are raw sugar, milk, and plywood.
The trade relationship between Kenya and Uganda is important to both countries. Kenya is Uganda's largest export market, while Uganda is Kenya's second-largest export market.
Traders dealing between the two countries, however, routinely decry the high cost of transportation.
In particular, the distance between the two countries is relatively short but the roads and railways are in poor condition making it expensive to transport goods.
Lack of Harmonised Policies
The two countries have different import and export duties, which can make it difficult for businesses to trade between the two countries.
Despite the challenges, the trade relationship between Kenya and Uganda is strong and is expected to continue growing in the future.
The two governments, therefore, are working to improve the infrastructure between the two countries and to harmonise their trade policies to ease the environment to do business.
In addition to trade, Kenya and Uganda also cooperate in a number of other areas, including security, education, and agriculture.
