Uganda Assures Kenya Of Supply Of Cheaper Eggs

Kenya can now buy cheap eggs from Uganda in the coming weeks following the reduced price of the commodity in the East African country after months of upsurge.

In an interview in Nairobi, Uganda’s Minister for Agriculture Frank Tumwebaze said the high cost had impacted negatively on production, limiting the supply of eggs in the regional market.

In Uganda, a tray of eggs is currently retailing at 308 shillings which is an increase from 205 shillings in December. This has made it hard for Kenyan traders to procure stock from the East African neighbor, as they will still incur transport costs making it expensive when it gets to the country.

The price of eggs locally has shot to a high of between 450-520 shillings in various retail shops and supermarkets, from about 360 shillings in December.  Traders attribute the sharp increase to a shortage locally as farmers cut on their stocks due to the high prices of feeds

The price of layers marsh has been on an upward trend since last year with a 50-kilogram bag from Unga Limited retailing at 3,100 shillings from 2,500 shillings in March 2022. This has in turn pushed up the cost of production at the farm level.

To bridge the local deficit, Kenya relies on imported eggs mainly from Uganda. Egg imports from Uganda have always been a problem to the local market because they retail at cheaper prices, thus suppressing the local commodity.

Uganda Cuts Supplies to Kenya Over Tax

The government last year imposed a 25 percent excise duty on all the Uganda eggs entering Nairobi. This saw suppliers from Uganda halt supplies to Kenya a move that triggered a shortage of the commodity. Uganda says the Kenyan government is taxing its eggs at a rate of 72 shillings per tray, with Ugandan traders shunning supplies to Kenya to tame losses.

Uganda said Kenya awakened a levy the two countries had suspended in December 2021 following bilateral talks which saw Nairobi lift all the bans that had been inaugurated. The country pointed out another trade battle between the two East African countries, after the latest battle which came as a result of the ban that Kenya imposed on Ugandan milk, particularly the Lato brand.

The Ugandan minister said Kenya and Uganda are at an advanced stage of trade talks that would eliminate non-tariff trade barriers in agriculture commodities that have impacted effective trade between the two neighbors.

“Soon, a trade agreement will be reached that will allow increased trade between our countries in areas where we have disputes,” he said.

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