Imports from Uganda saw a 9.09% decrease in spending during the first quarter of the year. This shows the influence of intermittent disagreements between Nairobi and Kampala over key agricultural goods like eggs, milk and powder.

Ugandan exports to Kenya dipped in the first quarter of 2024. Official trade data shows a decline to Sh. 7.48 billion in goods transported through formal channels, compared to Sh. 8.23 billion in the same period last year.

Imports from Uganda decreased while exports increased by 7.17% to Sh. 33.02 billion.

This helped Kenya increase its trade surplus with Uganda to Sh. 25.54 billion from Sh. 22.58 billion the year before.

Ugandan exports of goods like eggs, sugar, and milk powder have faced hurdles entering the Kenyan market in recent years. Ugandan authorities believe these hurdles stem from Kenyan policies designed to shield domestic farmers from competition.

During Uganda President Yoweri Museveni’s two-day state visit to Nairobi in early May, the growing trade barrier between the two countries was a key discussion point.

“We have agreed that the common principle will be the full implementation of the EAC customs and other infrastructure that support trade between East African countries.”

“Therefore, all the issues around rice, juice, furniture, eggs, chicken and sugar are now resolved,” exclaimed Kenya’s President William Ruto on May 16 following Mr Museveni’s visit.

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“We have agreed that trade between the two countries is unimpeded either by tariff or non-tariff barriers or arbitrary levies,” said President William Ruto.

Brookside Limited, under Brookside Dairy in Kenya, stated that it was one of the most affected businesses, with 114 export permits denied by the Kenya Dairy Board since March 2023.

“We were delighted to read the communique signed by the two countries when the two heads of State met in Nairobi, as we believe it was key to unlocking trade barriers that have existed since March last year.”

“However, a month later, we are yet to receive export permits for our long-life milk, which includes powder and ultra-high temperature  (UHT) processed milk,” Brookside Limited’s general manager, said in a media briefing in Kampala last week.

Despite Kenya being Uganda’s main market for dairy products, uprising trade restrictions have seen Kampala search for new markets, mainly in North and West Africa.