Uganda Warns Kenya Over Milk Deal
The Ugandan government has warned Kenya and South Sudan against unfair trade practices that are negatively impacting Ugandan enterprises.
Rebecca Kadaga, the Third Deputy Prime Minister, cited the Kenyan milk transaction as an example of unfair practices during the East African Business and Investment Summit and Expo 2023.
Kadaga questioned the rationale behind Kenya’s practice of permitting Ugandan milk for a period and then blocking the products halfway through the period.
Kadaga, stating Uganda’s position on the matter, remarked that Kenya’s shifting posture on milk importation was detrimental to her country’s economy.
According to Kadaga, Kenya’s practices were disrupting the trade value chain, which consisted of producers, processors, and packaging factories.
Concerning South Sudan, she voiced her displeasure with how the nation treated Ugandan grain exporters.
Kadaga disclosed that Juba authorities had sealed up maize products in a warehouse and removed the keys, citing substandard quality.
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Since she is also minister for East African Community (EAC) Affairs, Kadaga’s warning to Kenya and South Sudan carried more weight.
After the exhibition, the EAC bloc adopted resolutions to resolve the issues raised by Uganda.
The resolutions include strategies to increase intraregional commerce, as well as seamless regional communications and outdoor space.
Kenyan and Ugandan milk disputes
Kenya abruptly banned milk powder imports from Uganda in March 2023, compelling President Yoweri Museveni to seek an alternative market in Algeria.
Kenya announced at the time that the move was intended to defend local processors and farmers from low prices, as milk powder imports could cause a market glut.
In the same month that the prohibition was lifted, milk companies in Uganda complained that they were unable to export milk to Kenya.
In June 2023, Brookside Dairy Uganda sent at least 200 employees home after being compelled to reduce output by 75%.
Since March, when the export restriction was enacted, the company has been unable to export the milk it produces.
Uganda Warns Kenya Over Milk Deal