This archive report was first published on 20 December 2019.
Kenya has taken a significant step to protect its dairy farmers by imposing a 16 percent value-added tax (VAT) on milk imports from Uganda. This move comes as part of efforts to calm simmering trade tensions between the two neighboring countries.
According to a bilateral meeting between trade officials from the two countries on Friday, the VAT will be imposed on milk imports into Kenya, as it is also imposed by Uganda. This decision was reached after a verification mission carried out by a joint Kenyan and Ugandan delegation from December 16 to December 20, following Kenya's concerns about the excessive influx of Ugandan milk in the Kenyan market.
During the meeting, which was held in Kampala, the two countries also discussed other issues hindering trade between them, including levies and taxes imposed on both local and imported products. These issues included road levies, VAT, and withholding tax, as well as delays in clearing goods and parking space at the port of entry, particularly the border post.
Kenya's Principal Secretary in the department of trade, Chris Kiptoo, stated that the meeting appreciated the need for harmonization and the holding of a meeting of all relevant ministries and departments to deliberate on the matter.
By James Anyanzwa
