Kenya Allows Uganda Dairy Imports Amid Selective Permit Issuance Claims

Kenya has recently started permitting dairy imports from Uganda, a move aimed at easing previous trade restrictions. However, the Kenya Dairy Board (KDB) faces allegations of selectively issuing permits to Ugandan milk processors, raising concerns about fair trade practices and market access.

Ugandan dairy products, notably Lato and Dairy Top milk, have resurfaced in Western Kenyan markets. This development signals a potential relaxation of the trade blockade imposed in March last year, which had significantly disrupted the dairy industry. Despite this, the KDB is accused of allowing only specific firms to access the Kenyan market while continuing to block others, particularly Brookside Limited, a subsidiary of Kenya’s Brookside Dairy.

KDB has not yet commented on the accusations of selective permit issuance or the rationale behind excluding certain Uganda-based processors from exporting to Kenya. The selective importation strategy has ignited a debate among traders and consumers, who are urging the regulator to resolve the impasse and offer a broader range of dairy products.

Kevin Owino, a wholesale stockist in Mamboleo, Kisumu, voiced concerns over the limited availability of Ugandan dairy brands. “Dairy products from Uganda are relatively cheaper compared to local brands due to the lower costs of production there. Consumers are asking why we no longer stock a product like Fresh Dairy, but we are not receiving any supplies from Kampala,” Owino stated. The disruption has notably affected the operating margins of traders who previously relied heavily on Ugandan imports.

The trade restrictions began in March last year when KDB ceased issuing permits for Ugandan dairy products via the KenTrade system, despite a rescinded ban by the Principal Secretary of the State Department for Livestock Development. This abrupt halt in imports led to significant market jitters and impacted the availability of long-life milk products in Kenyan stores.

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Despite a joint communique signed on May 17 during President Yoweri Museveni’s visit to Kenya, aimed at strengthening bilateral relations, the trade tensions persist. Brookside Limited’s general manager in Kampala, Benson Mwangi, highlighted the ongoing challenges, revealing that KDB had denied the processor 114 permits. Repeated reminders to the Kenyan dairy regulator have reportedly been ignored, exacerbating the situation.

Uganda relies heavily on Kenya as a primary market for its milk exports, with over 80 percent of its dairy products destined for its neighbor. However, the continued difficulties in accessing the Kenyan market are prompting Uganda to seek alternative markets, particularly in North and West Africa.

Traders in Western Kenya and the North Rift confirm the sporadic availability of Ugandan milk products, underscoring the need for a resolution. The prolonged impasse over the movement of specific dairy brands from Kampala has led to consumer inquiries and dissatisfaction. Business owners, who previously stocked mainly long-life milk from Uganda, now struggle to meet customer demand, impacting their business operations.

The dairy trade dispute between Kenya and Uganda underscores the complex dynamics of regional trade and the importance of transparent regulatory practices. As the situation evolves, stakeholders hope for a swift resolution that will restore normalcy to the dairy trade, benefiting both producers and consumers. The call for the KDB to review and address the current issues is growing louder, with the aim of ensuring fair market access and a diverse range of dairy products for Kenyan consumers.

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