There is a brewing trade war within the East African Community (EAC) following reports that Kenya has reintroduced a levy on eggs from Uganda.
The reports say Kenyan authorities have imposed taxes on the eggs at a rate of Ksh.72 per tray, contrary to an agreement the two countries had in December last year.
Kenya’s decision has been met with opposition from Ugandan traders who say that the tax imposed on the eggs is a violation of the EAC policy.
“The implementation of levies on Ugandan eggs by Kenya is a bad policy and in violation of the East African Community policy of free movement of goods and services originating from the member states,” the Chairperson of Uganda National Cross-Border Trade, Godfrey Oundo Ogwabe, told the Daily Monitor.
Responding to the reports, Kenya’s Livestock Principal Secretary Harry Kimtai said the levy is just like any other tax imposed on other commodities coming in from other countries.
“I do not have specific information on the tax but this could be the normal levy that the Kenya Revenue Authority imposes on imports,” he’s quoted as saying by the Ugandan publication.
The looming trade war comes at a time when the two East African countries are yet to resolve some long-standing disputes regarding imports of some commodities from Uganda to Kenya.
In the past few years, Kenya has restricted importation of poultry and dairy products from Uganda; a move that forced Kampala to retaliate by threatening to bar entry of some goods from Kenya.
The tension between the two nations was, however, quelled last year after officials from both countries met in Kampala to resolve the issue.