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Commodities

Kenya set to slap 16pc duty on Ugandan milk to curb influx

Trade Principal Secretary Chris Kiptoo
Trade Principal Secretary Chris Kiptoo. FILE PHOTO | NMG 

The cost of Ugandan milk in the Kenyan market could rise following a proposal to levy 16 percent duty on dairy products from the neighbouring state as the government moves to curb an influx.

Trade Principal Secretary Chris Kiptoo said the duty was decided by the ministry after visiting Uganda.

There has been increased supply of cheap milk from Uganda leading local processors to raise concerns on the negative impact it has had on sales.

A half litre packet of fresh milk is currently retailing at Sh38 locally.

Mr Kiptoo said a report was being drafted to be presented to the Cabinet before it goes to Parliament for approval.

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“We have proposed a 16 percent duty that would be levied on Ugandan milk as the government seeks to protect farmers from increased competition,” said Dr Kiptoo.

The move follows a visit by Kenyan delegation to Uganda last week after concerns from farmers that the Ugandan milk had subjected them to losses because of the low prices, forcing the parliament to intervene.

Processors are witnessing low sales, especially in western Kenya where there is an influx of cheap Ugandan milk. This comes even as volumes of Kenyans milk continue to rise.

The department of livestock is seeking Sh2 billion from the Treasury to mop up excess milk in the market.

The funds will be used in convert surplus milk into long-term products such as UHT and powder milk, which can be reconstituted in times of shortages.

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