It was also agreed that the Kenyan government would immediately post trade facilitation officers within Uganda to gather information, monitor and confirm that Uganda exports into Kenya are wholly obtained from Ugandan factories.
The Kenyan government has agreed to let
in 90,000 metric tonnes of Ugandan sugar into its market annually, following a
meeting of the two countries' officials.
The revelation was made yesterday by the
Deputy Secretary to the Treasury, Patrick Ocailap, as he briefed President
Yoweri Museveni at the Presidential Ranch in Kisozi, Gomba District.
According to Mr Ocailap, the Kenyan
government has agreed with immediate effect to allow 20,000 metric tonnes of
Ugandan sugar into their country and the rest will be cleared following a
verification process.
President Museveni thanked the Kenyan
government for the gesture, saying it would boost the prosperity of Ugandans.
"It also cements our spirit of East
African Integration," he added.
Early this month, President Museveni
contacted his Kenyan counterpart, Uhuru Kenyatta, after Nairobi barred sugar
imports from Uganda.
The two leaders agreed to task their
officials to meet and agree on a workable solution.
On December 18th, Mr Ocailap led a
Ugandan delegation to Nairobi, while the Kenyan team was headed by Ambassador Johnson
Weru, the Principal Secretary Ministry of Trade.
The meeting agreed that Kenya would
allow duty free wholly obtained sugar from Uganda up to 90,000 metric tones per
annum on condition of submission of proof thereof.
It was also agreed that the Kenyan
government would immediately post trade facilitation officers within Uganda to
gather information, monitor and confirm that Uganda exports into Kenya are
wholly obtained from Ugandan factories.
Uganda’s government was also officially
tasked to notify Kenya of its decision to abolish bonded warehousing of sugar
and provide verifiable evidence which would help in reducing smuggling and
re-bagging of non East Africa originated sugar.
It was also noted that Kenya’s Ministry
of Agriculture through its Agriculture and Food Authority would fully audit the
register of permit holders with a view to establishing the fully authorized
import/trade permits and weed out the inappropriate ones by the end of December
2020.
The Kenya government also agreed to send
a bilateral sugar verification mission to Uganda before the end of January 2021
and the mission would be fully facilitated by the government of Uganda.
In the briefing with the President, Mr
Patrick Ocailap said a letter to the Kenyan government confirming abolishing of
bonded warehouses for sugar was being prepared.
He said Uganda was ready to receive the
Kenyan officials tasked with verifying the Ugandan factories, adding it would
build trust and confirm that Uganda has the capacity to export high quality
sugar.
On the issue of permits, Ocailap said
once the cleaning of the permit register was sorted, any sugar imported through
Uganda from outside East Africa must pay the full taxes at the coast of
Mombasa.
He noted that this new sugar trade
development would spur growth in the economy of Uganda and would further
strengthen the relationship between Kenya and Uganda.
Other delegates in attendance of the
meeting on the Ugandan side were; Jacqueline Banana, representative from Uganda
High commission in Nairobi, Amina Hersi Moghe Osman, founder and CEO of
Horyal Investment Holding company/Atiak, Sarbjit Singh Rai, Chairman of Kinyara
Sugar Works Limited while those on the Kenyan side were Dr. Joseph Kinyua head
of public service, Dr Julius Muia, Principal secretary of the National
Treasury, Dr. Francis Muraya, senior economic advisor, James Githi,
Commissioner General of Kenya Revenue Authority, Joseph Ngugi from the National
Treasury and Rosemary Owino, Sugar Director from the Agriculture and Food
Authority.
