African Essence

Poultry farmers in Kenya decry Uganda, Tanzania unfair trade

Last updated on September 11th, 2021 at 02:48 pm

Poultry farmers in Kenya want the Ministry of Trade to intervene on the discriminative tariff by the Uganda on chicken meat.

Uganda Revenue Authority has in the past two years charged Kenyan chicken meat exports a cumulative 25 per cent in taxes – 18 per cent VAT, one per cent Railway Development Levy and six per cent Withholding Tax.

“We want the government to review the taxes charged by our neighbors, both Uganda and Tanzania,” Kenya Poultry Farmers president Monica Wanjiru said.

She added that their plea is to the government to impose tax Uganda poultry imports or for the Ugandan government to waive 19 per cent tax on VAT and Railway Development Levy.

The taxes charged by the Uganda, Wanjiru argued, violates World Trade Organization first principle on fair trade.

This means that the Uganda poultry products have free access to the Kenyan market while the Kenyan products are hindered from access to Uganda through Non-Tariff Barriers (NTBs) or imposition of domestic taxes (VAT, withholding taxes or railway levies).

Wanjiru added that “Tanzania has also imposed stringent requirements for compliance from the Tanzania Bureau of Standards (TBS) which many players in the poultry sector have seen as deliberate efforts to bar them from accessing the market.” In 2016,Tanzania banned the importation of poultry and poultry products into the country.

In a technical paper presented to the Department of Livestock in December 2019, and developed jointly by Livestock stakeholders, it proved that Hudani Manji Holdings (Yokuku), the Ugandan poultry producer that has been exporting product to Kenya is effectively dumping products into the Kenyan market.

“The price offered to the majority of the customers here in Kenya is lower than Hudani’s direct costs (production, transport and inspection fees) and the prices generally offered to customers in Uganda,” the document read.

Dumping raises important issues for Kenya and its policymakers, from unemployment to food security, and has implications for economic and social stability.

Kenyan producers would compete strongly against imported products from Uganda if the competition was fair, but dumping has made it impossible to compete fairly in a growing local market that has seen the proliferation of price-sensitive retailers and customers.

(TheStar)

Albert Echetah

Recent Posts

Africa and GCC Trade Doubles to $121 Billion

Trade between African and GCC countries stands at $ 121 billion in 2023, double of what it was in 2016.…

December 21, 2024

Families in Mayotte rebuilding their homes complain of lack of help

Family members struggling after one week after  of Cyclone Chido ripped through the French island territory of Mayotte expressed helplessness…

December 21, 2024

Ethiopian PM Inaugurates UAE-Funded Orphanage in Oromia

The United Arab Emirates has launched its orphanage project in Ethiopia's Oromia region on the orders of President Sheikh Mohamed…

December 21, 2024

A Rising Femicide Threat, Kenya’s Call to End Gender Based Violence

In just four months, 100 women have been killed, the majority by males they knew including spouses. Prime Cabinet Secretary…

December 20, 2024

Actor C Confion has passed away

The Ghanaian entertainment industry is in deep mourning following the sudden death of Bright Owusu, better known as C Confion.…

December 20, 2024

South Africa: 512 Accident Deaths and 941 Arrested for Drunk Driving Just on December Month

Since the beginning of December more than five hundred people have lost their lives on the nation's highways. Barbara Creecy,…

December 19, 2024

This website uses cookies.