President Museveni Unveils Solution to Kenya Trade Challenges
Uganda’s President Yoweri Museveni has instructed his government to adopt discussions with Kenya to address trade challenges that have caused conflict between the two nations.
In his New Year’s speech, Museveni acknowledged that numerous Ugandan businesses had expressed grievances about the non-tariff obstacles imposed by nations such as Kenya, leading some to urge him to take retaliatory action.
He mentioned that engaging in negotiations stood as one of the most effective methods to tackle trade issues, pointing to the successes his administration had attained by conversing with previous administrations in Kenya.
He specifically mentioned occasions when past Kenyan administrations had shut down the borders to Ugandan goods.
“The NRM will not be part of those blind policies. Some Ugandan businesspeople cite the non-tariff barriers practiced by other countries. In the early years of our Government, Mzee Moi, at one time, closed the border, but I rejected the arguments for retaliation.
“Today, Uganda’s exports to Kenya are either equal to our imports from there or, sometimes, they are higher. Rationality cannot be ignored indefinitely,” he stated.
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However, he emphasized his desire to eliminate non-tariff barriers to enhance trade within the East African region.
In 2023, Kenya was caught up in trade disputes with Uganda, primarily centered around imports of oil and milk.
For example, in 2023, Ruto prohibited the entry of milk products from Uganda following allegations that certain Kenyan businesses were bringing in milk powder from Uganda, diluting it with water, and marketing it as milk within Kenya.
“There is milk from our neighboring country and oftentimes it’s not from their farms. This is milk from foreign countries, taken to factories, and processed. A milk company in Kenya is the one doing that,” the Head of State revealed during an interview with Inooro FM in August 2023.
However, Uganda severed connections with Kenyan companies involved in importing oil due to allegations that their methods of generating profit raised the prices of fuel products.
In Uganda’s updated approach to importing oil, the neighboring nation plans to buy fuel directly from international companies and then transport it via Kenya.
President Museveni Unveils Solution to Kenya Trade Challenges