The East African (Nairobi)

Kenya: Govt to Pay Ugandan Traders Over Poll Losses

Charles Kazooba

29 June 2008


Nairobi — The Kenyan government has asked Uganda to submit the monetary value of merchandise destroyed during the post-election violence for compensation, The EastAfrican has learnt.

Senior government officials in Kampala told this newspaper last week that Nairobi had sent a diplomatic notice through its high commission in Uganda on April 4 indicating that it was "going to pay all those who lost their goods."

Patrick Guma, a spokesman for Uganda's Foreign Affairs Ministry, said: "We are aware of the message from Kenya. We have a lot of interest but for now it is still sensitive, and therefore I cannot comment on the subject."

Rift Valley Railways, the joint concessionaire managing the Kenya-Uganda railway, also reported losses as a result of the post-election violence. Bobby Louw, head of operations at RVR-Kenya, estimated an average loss of Ksh15 million ($231,000) per day during the violence. Sections of the railway line between western Kenya and neighbouring Uganda were damaged, interrupting the flow of goods. The RVR official claimed total loss of business stood at about Ksh375 million ($5.8 million) by the end of January.

Although it is anticipated that RVR can offset its losses from its insurance policy, Roy Puffet, the firm's managing director, said: "We have heard about the compensation, but we are still making a study to compute the losses."

He said there has been extensive correspondence between his firm and the two neighbouring governments.

More than a dozen Ugandan traders lost merchandise and vehicles during the violence that erupted in Kenya at the end of last year and early this year between supporters of Raila Odinga and Mwai Kibaki, the two main presidential candidates in the race.

Kenya offers landlocked Uganda its only direct land route to the sea but weeks of violence disrupted trade and saw vehicles as well as tracks on the Kenya-Uganda railway line vandalised.

A lot of the violence occurred in the western Kenyan towns of Kisumu and Eldoret, both opposition strongholds and transit points for trade between the two countries.

After President Yoweri Museveni congratulated President Kibaki on his re-election, angry opposition supporters who were still protesting against the election results started attacking goods vehicles and traders going to Uganda. Several fuel trucks were burnt and the trade blockade resulted in a severe shortage of fuel that sent pump prices soaring in Kampala.

The EastAfrican has learnt that although no figure has been discussed in terms of compensation, Kampala has started verifying claims by Ugandan traders who say they lost goods.

Officials from the Kampala City Traders Association lobby group said they have already identified six of their colleagues with claims worth over $835,958. Kacita said they were informed the claims would eventually be submitted to Uganda's Solicitor General for approval.

However, Issa Sekito, the traders' spokesman, said they anticipate the number of claimants would increase after the government announces the exercise.

Said Mr Sekito: "There are many traders upcountry who do not yet know what is going on; we expect that after the government has announced the intended compensation publicly, they will submit their claims."

He said the monetary figures of the claims were computed based on invoices valued and costs of transport for the goods. For the vehicles burnt, he added, the owners can easily establish the value.

"We are very grateful that this [compensation] is happening. Such things will strengthen the spirit of East African Community," Mr Sekito added.

The EastAfrican has learnt that Kenya has been receiving individual claims through its mission in Kampala but has asked the Ugandan government to co-ordinate the process so that the claims can be settled through one lump-sum payment.

The head of finance and administration at the Kenyan High Commission in Kampala, Samuel Gitongi, told The EastAfrican he was unaware of the compensation process.

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