The Ugandan government has warned Kenya and South Sudan of unfair trade practices that are affecting businesses in the country.
Speaking during the East African Business and Investment Summit and Expo 2023, Third Deputy Prime Minister, Rebecca Kadaga, pointed out Kenya’s milk deal as one of unfair practices.
Kadaga wondered about the motive of Kenya’s practice of allowing Ugandan milk for a period, only to block the products midway through the agreed period.
Stating Uganda’s stand on the matter, Kadaga remarked that the constant change of Kenya’s stance on milk importation was harming her country’s economy.
Kadaga stated Kenya’s practices were disrupting the trade value chain comprising farmers, processors, and packaging factories.
For South Sudan, she expressed her displeasure with how the country was treating grain exporters from Uganda.
Kadaga revealed that authorities in Juba had locked up maize products in a warehouse and took keys with them claiming poor standards.
Kadaga's warning to Kenya and South Sudan carried more weight as she is also a minister for East African Community (EAC) Affairs.
At the end of the expo, the EAC block agreed on resolutions that would address the challenges raised by Uganda.
The resolutions include laying strategies to increase intraregional trade as well as seamless telecommunications across the region and an open-air space.
Kenya-Uganda milk wrangles
In March 2023, Kenya abruptly banned milk powder importation from Uganda forcing President Yoweri Museveni to look for an alternative market in Algeria.
At the time, Kenya announced that the move was to protect local processors and farmers from low prices as milk powder imports could lead to a glut in the market.
The ban was lifted in the same month but milk companies in Uganda complained they were still unable to export milk to Kenya.
In June 2023, Brookside Dairy Uganda sent home at least 200 workers after being forced to cut production by 75 per cent.
The company announced that it had been unable to export the milk produced since the ban was instituted in March.
