July 3, 2024

Uganda warns Ruto over ‘Brookside’ milk deal

2 min read
Uganda warns Ruto over 'Brookside' milk deal

Uganda fires warning to Kenya over unfair business practices after President Ruto banned importation of Ugandan milk

Uganda fires warning to Kenya over unfair business practices after President Ruto banned importation of Ugandan milk.

The Ugandan government has warned Kenya and South Sudan over unfair trade practices that are harming local firms in the country.

Speaking during the East African Business and Investment Summit and Expo 2023, Third Deputy Prime Minister, Rebecca Kadaga, cited Kenya’s milk contract as an example of unfair tactics.

Kadaga wondered about the motive of Kenya’s practice of allowing Ugandan milk for a period, only to block the products midway through the agreed period.

Kadaga stated Uganda’s position on the subject and said that Kenya’s ongoing shifts in its position on milk importation were hurting the economy of  Uganda.

Kadaga stated Kenya’s practices were disrupting the trade value chain comprising farmers, processors, and packaging factories. 

Kenya in March 2023 abruptly banned milk powder importation from Uganda forcing President Yoweri Museveni to look for an alternative market in Algeria.

The ban was lifted in the same month but milk companies in Uganda complained they were still unable to export milk to Kenya.

In June 2023, Brookside Dairy Uganda sent home at least 200 workers after being forced to cut production by 75 per cent after President Ruto banned milk powder importation from Uganda.

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The company announced that it had been unable to export the milk produced since the ban was instituted in March. 

For South Sudan, she expressed her displeasure with how the country was treating grain exporters from Uganda.

Kadaga revealed that authorities in Juba had locked up maize products in a warehouse and took keys with them claiming poor standards. 

Kadaga’s warning to Kenya and South Sudan carried more weight as she is also a minister for East African Community (EAC) Affairs. 

At the end of the expo, the EAC block agreed on resolutions that would address the challenges raised by Uganda.

The resolutions include laying strategies to increase intraregional trade as well as seamless telecommunications across the region and an open-air space.

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