News in Brief:
– Kenya has lifted a ban on powdered milk imports from Uganda to address milk shortages during dry seasons.
– This move signals a potential easing of trade tensions between the two countries, but challenges persist in achieving a fair and balanced dairy trade relationship.
Kenya has lifted a ban on powdered milk imports from Uganda, signaling a potential thaw in trade tensions between the East African neighbors.
This decision by the Kenya Dairy Authority, and reported by a local media house, aims to address milk shortages expected during the dry seasons of July-August and December-February.
However, the move comes amidst a history of trade disputes between the two nations, particularly concerning dairy products.
Following the formation of the East African Community (EAC) Common Market in 2010, Ugandan milk exports to Kenya surged, reaching $96 million (approximately Ksh12.8 billion) by 2018. This influx of cheaper Ugandan milk raised concerns among Kenyan producers, leading to calls for protectionist measures as early as 2019.
Consequently, in 2020, Kenya imposed a complete ban on Ugandan milk imports, a decision met with resistance and negotiations. Finally, in October 2022, President William Ruto lifted the ban, citing potential benefits for both countries. However, concerns over processing practices led to continued restrictions on some Ugandan milk products.
Meantime, Data from the Uganda Dairy Development Authority (DDA) highlights Kenya’s dominance as Uganda’s dairy export market. In the year leading up to June 2023, Kenya purchased Ksh29.2 billion worth of Ugandan dairy products, accounting for 83% of Uganda’s total dairy exports.
Despite the recent move on powdered milk imports, some tensions remain in the Kenya-Uganda dairy trade relationship. The path towards a mutually beneficial trade balance appears complex, with ongoing challenges to be addressed.
