Kenya and Uganda have resumed trading in sugar and milk after a memorandum was signed by Presidents William Ruto and Yoweri Museveni in Nairobi.
This development has alleviated longstanding issues that were hindering cross-border commercial activities. Although progress has been made in certain sectors, such as sugar and dairy, businesses remain cautious due to pending reviews of various taxes, including those on Kenyan juice.
“We should eliminate barriers which hinder trade not only between Kenya and Uganda but also in East Africa and Africa as a whole. Protectionism is not good for Uganda, Kenya or Tanzania,” President Museveni said.
“All the issues around [trading in] rice, fruit juices, sugar, furniture, eggs, chicken and all the other issues are now resolved,” Dr Ruto declared.
The two countries have also signed several memoranda covering public service management, education, SME development, sports, youth, trade, and investment. Efforts are being made to resolve trade disputes by adhering to the EAC’s protocols on the Customs Union and the Common Market.
Despite these positive steps, the private sector in Uganda remains cautious, expressing concerns about potential obstacles that may arise.
Discussions are ongoing to address issues such as excise duty on Kenyan juice and to ensure a smoother trading relationship between Kenya and Uganda.
