Economy

Kenya pushes Uganda to remove poultry taxes

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Ministry of Industrialization, Trade and Enterprise Development Cabinet Secretary Betty C. Maina speaking at the Crowne Plaza Hotel, JKIA on Monday, January 18, 2021. FILE PHOTO | NMG

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Summary

  • Kenya has renewed its push for a review of the 18 per cent value added tax (VAT), a six per cent withholding tax and a one per cent railway levy charged on its poultry product exports to Uganda, terming it irregular.
  • A Kenyan delegation led by the Industrialisation, Trade and Enterprise Development Cabinet Secretary Betty Maina met President Yoweri Museveni last week in Kampala, where it raised the complaint.

Kenya has renewed its push for a review of the 18 per cent value added tax (VAT), a six per cent withholding tax and a one per cent railway levy charged on its poultry product exports to Uganda, terming it irregular.

A Kenyan delegation led by the Industrialisation, Trade and Enterprise Development Cabinet Secretary Betty Maina met President Yoweri Museveni last week in Kampala, where it raised the complaint.

“Regarding Uganda’s imposition of 18 percent VAT on processed poultry meat exported from Kenya into Uganda: the action is in contravention of Article 15 of the EAC Customs Union Protocol and Uganda shall amend the applicable law to bring it into conformity with the protocol with effect from 1st July 2021,” said a joint communique on improving bilateral trade relations between the two countries.

The unfavourable taxation makes it difficult for Kenyan poultry products to access the Ugandan market.

Last year, Federation of Poultry Farmers asked the government to impose similar taxes on Ugandan poultry products to create a level playing field.

In January, through a memo to stakeholders, the Directorate of Veterinary Services stopped all chicken, meat and egg importation to cushion local producers amid low demand from restaurants and eateries due to Covid-19’s disruption.