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Kenya: Country Accused of Unfair Regional Trade
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The Nation (Nairobi)
22 July 2008
Posted to the web 22 July 2008
Walter Menya
Nairobi
A Ugandan poultry exporter is accusing the Kenyan Government of betraying the spirit of East Africa Community by imposing unwarranted restrictions on cross-border trade.
Mr James Semakadde, a business consultant with Ugachick Poultry Breeders, claimed the Kenyan Government was slapping tough trade restrictions on Ugandan traders.
The firm that had confirmed participation in the Kisumu regional show that runs from July 30 to August 3 is now planning to withdraw citing lack of goodwill from the Kenyan Government.
The Government, through the veterinary department, has refused to grant Ugachick a licence to export to the country poultry products after the regional show unless it finds a local partner, said Mr Semakadde.
"What is the purpose of exhibiting if we cannot be allowed to sell our products?" asked Mr Semakadde.
The limit
He also said they have been restricted on the number of birds the firm could bring in for exhibition to 200 day-old chicks down from 10,000 the firm had requested.
He said while Kenyan traders control most of the business in Uganda, the Nairobi was not willing to reciprocate the friendly gesture.
"On paper, the East African Community is soon evolving into a Customs Union but on the ground, we are singing to a different tune," he said.
The firm says it had already invested Sh600,000 in the preparations for the show.
But speaking from London where she is attending an investment workshop, Kenya Investment Authority managing director Susan Kikwai dismissed claims of bad blood between Kenya and Uganda saying investors were always free to enter into the Kenyan market.
"We would not like to have a situation where one feels aggrieved," said Ms Kikwai.
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She said the existing trade agreement allowed for foreign investors to wholly own businesses in Kenya or choose to partner with locals.
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