Uganda’s Minister of Trade, Industry and Co-operatives, Amelia Kyambadde has protested to Kenya’s ministries of Trade and Industry threatening retaliatory measures against Kenyan imports to Ugandaif the recent cash bond regulation issued is not withdrawn.
“I have been informed by theUganda business community that Kenya Revenue Authority (KRA), under notice CUS/L&A/LEG/1, has unilaterally decided on a requirement for a cash bond/bank guarantee on transit sugar and motor vehicles of 2000cc and above,” she says.
Kyambadde’s protest letter copied to the Uganda High Commission in Nairobi, warned that Kenya’s action constitutes non-tariff barrier imposed by Kenyan authorities on its transit cargo.
She says that the directive contravenes East African Community Customs Union protocol and decisions reached by the Council of Ministers in March 2012, on removal of non-trade barriers in the community.
“If Kenya needs an instrument to regulate regional trade in sugar and other products, a cash bond is not the instrument to apply,” said Kyambadde.
Uganda Revenue Authority (URA) held closed-door meetings with KRA in Nairobi last week but a mutual solution was not found.
Kyambadde says that most traders inUganda are not able to meet KRA’s new conditions especially the cash bond.