The long business relationship between Uganda and Kenya have finally come to a standstill after the Ugandan traders under their umbrella body, Kampala City Traders Association (KACITA) resolved to suspend using the Kenyan Mombasa port.
The development comes after the introduction of cash bond tax by the Kenyan Revenue Authority (KRA) something that has seen hundreds of containers of goods heading to Ugandaheld at Mombasaport.
Everest Kayondo, KACITA chairperson says that effective from Wednesday traders will start using the Dar el salaam route to Uganda.
The KACITA chairperson says that they will take legal action against Kenya Revenue Authority (KRA) over a directive that they deposit a cash bond equivalent to the value of imported cargo or bank guarantee before clearing their goods.
Last week, KRA directed that all transit sugar and motor vehicle imports, whose capacity exceeds 2000cc, must pay a cash bond equivalent to the value of imported cargo.