UMA Executive Director, Daniel Birungi
The trade disputes between Kenya and Uganda are increasingly threatening the bilateral relations of the two East African countries.
Kenya and Uganda are key partners in areas of trade, infrastructure, security (military), education, agriculture and energy sectors.
However, Uganda Manufacturers Association (UMA), an umbrella body for manufacturers in Uganda, says Kenya is a disregarding the East Africa common markets commitment by practicing unfair trade practices.
UMA says Kenya is limiting access to raw materials and fresh agro inputs for Ugandan processing industries.
Speaking to journalists at UMA headquarters on Wednesday, UMA Executive Director, Daniel Birungi, said although Uganda has developed capacity to produce goods that were previously imported from Kenya, the Kenya counterparts have blatantly barred Ugandan goods into Kenyan markets, citing origin questions, baseless quality queries, smuggling and permits among other claims.
“The EAC Common Market guarantees unfettered free movement of goods and services. However, the Republic of Kenya has completely ignored the EAC Common Market commitments and has wantonly barred Ugandan goods into Kenya,” Birungi said.
He added that despite persistent trade distortions orchestrated against Uganda, Uganda’s exports to Kenya have been increasing exponentially.
In 2017, Uganda managed to report the first ever trade surplus with Kenya.
“UMA thus demands that Government of Uganda changes tactics to retaliate against Partner States that breach the EAC Common Market Protocol through blocking Ugandan originating goods into their markets. UMA expects action before Christmas Day,” Birungi added.
UMA added that the Republic of Kenya has intensified Non-Tariff Barriers with fears of possible takeover of balance of trade power, which they say acts contradict the EAC Common Market commitments.
Uganda has over the years taken baby steps towards boosting local production in efforts towards imports substitution. They include the introduction of the Buy-Uganda-Build-Uganda (BUBU) initiative to boost local production and consumption of domestically-manufactured products.
Key among the products Uganda imports are pharmaceutical products, clothes, footwear, oil and gas.
Others include building materials, kitchen and sanitary ware, taps, glasses and raw materials used in the production of other products, such as iron sheets, cement and paint.
“In January 2020, the Ugandan Government issued a Protest Note that remains un-replied. Prior to that, there has been every effort at the level of Heads of States to resolve the trade issues between Kenya and Uganda, with minimal success with Kenya has consistently breached on commitments while Uganda continues to play second fiddle” UMA’s statement reads in part.
According to Uganda Export Promotion, the exports to Kenya have been increasing over the years from $73 Million in 2017 to $159 Million in 2020. On the other hand, Kenyan exports into Uganda have increased from USD 1.1 Billion in 2017 to USD 1.2 Billion in 2018/2019.
By Drake Nyamugabwa
