A trade war between Kenya and Uganda is brewing over the return and diversion of UHT milk as reported by Uganda Revenue Authority (URA).
In their memo, URA alleges that goods worth Ksh 27 million being ferried by trucks were returned or later seized by Kenyan authorities.
In addition to that, Uganda is accusing Kenya of sealing off its depot centre in Kisumu as they warned of a trade war between the two countries.
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Reports from Uganda reveal that the country is already planning to respond by dealing with Kenyan exports including juices and many others.
RevAccording to Daily Nation, they have received information that even when the goods are cleared at the border by Kenyan authorities, they are later seized under unclear circumstances.
Plans by URA to establish the root cause of the problem hit a snag with the only reply they receive is that the matter is way beyond them.
Speaking to Uganda’s Daily Monitor, Mr. Bijoy Varghese the General Manager of Pearl Dairy, producers of Lato Milk still has no clue what is going on.
Mr. Varghese complained as to how their depot in Kisumu has been sealed off.
The way forward into the matter is now heading to diplomatic talks as trade wars are against the East Africa Community treaty.