Kenya pushes Uganda to cut poultry levies

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Kenya has protested to Kampala over levies charged on poultry products exported to Uganda, citing a lack of a level playing field as Nairobi does not impose similar taxes.

According to the State Department of Livestock, Uganda levies goods from Kenya 18 percent in value-added tax (VAT), a six percent withholding tax and a one percent railway levy.

A Kenyan delegation is currently in Uganda following up on the implementation of the bilateral talks between the two countries in March held in Nairobi.

Last week, Trade Cabinet Secretary Peter Munya said there was a need to level the playing field by ensuring that Kenyan goods are not charged extra levies in the spirit of EAC protocol.

The Kenyan delegation is in Uganda to also follow up on the increased volumes of milk coming from the landlocked neighbour, which has impacted negatively on local producers.

Numbers from the Kenya Dairy Board presented to the parliamentary Committee on Agriculture a fortnight ago indicated the volume of milk imports from Uganda have been surging in the last three years.

Data showed that milk imported from EAC, with the most volumes coming from Uganda, hit 110.7 million litres between January and September from 3.0 million litres in 2016.