An economic war between Kenya and Uganda is simmering. It is like a mini replica of USA – China trade war.
Kenya moved to impose 16 percent VAT on milk from Uganda in a move to help “cushion the Kenyan farmer” from cheap milk from Uganda.
Kenyan blamed milk from Uganda as the main reason why Kenyan farmers were pouring out milk due to frustrations out of low prices.
The move to impose 16 percent VAT on milk from Uganda seems to have infuriated leaders from the land of “Sebo.”
Although the Kenyan authorities said the move to impose 16 percent VAT on milk from Uganda was reached after a meeting between leaders from both Kenya and Uganda, Ugandans seem to have received a raw deal.
Uganda is now up in arms. The land of matoke has decided to impose 16 percent VAT on any product from Kenya as punishment for the 16 percent VAT on milk from Uganda.
“The policy is just aimed at enriching a few in Kenya at the expense of the poor farmers from Kenya,” said Soko Analyst, through his Twitter handle.
After the announcement that Kenya had imposed 16 percent VAT on milk from Uganda, Ugandans took to social media in fury calling on their government to act.
In fact, some Ugandans wanted their government to impose a 35 percent tax on any product from Kenya as a way of fighting back.
It is not only milk from Uganda that is affecting the local farmers in Kenya, but eggs too. For years, farmers in Kenya have been crying for help following the flooding of cheap eggs from Uganda.
An egg from Uganda sells at between 4 and 5 shillings in Kenya while that from a Kenyan farmer is going for between 10 and 12 shillings. The government of Kenya refused to act on the eggs issue saying it had no control and that Kenyans had to diversify.
“The Kenyan farmer has nothing to celebrate. They are on their own. Anybody thinking that this government has the best interest of the farmer at heart should see a doctor,” said Fridous Wambani, a farmer from Bungoma County.