The Uganda Revenue Authority has disclosed that Kenyan authorities have returned at least 19 trucks ferrying UHT and powder milk from Uganda into the country.
The milk trucks have were returned to Uganda on different dates after they were seized by Kenyan authorities without any explanation.
The trade restrictions are set to have far reaching implications after the government sealed off Pearl Dairies depot in Kisumu which is used to supply Lato Milk across the country, as reported by Daily Monitor.
According to an internal memo by URA, Uganda is targeting a number of goods, key among them juices, assorted household items and roofing materials.
The Ugandan authorities said the milk products are usually cleared by KRA, Kenya Bureau of Standards and Kenya Plant Health Inspectorate Service but are later seized by the police.
“Police is removing milk from the market and stopping new supplies. No one is providing an explanation,” a source at URA said under conditions of anonymity.
Uganda's commissioner for customs Dicksons Kateshumbwa said he has been able to engage his counterpart in Kenya, Kevin Safari, he has been informed “the matter is beyond customs.”
The move came after KRA introduced a 16% Value Added Tax (VAT) on all milk products from the nighbouring country.
It was resolved that the new tax will help cushion Kenya's dairy industry from the influx of cheap milk from Uganda which has dealt a blow on local dairy farmers.
Kenyan farmers especially those from Central Kenya had been complaining about the low prices of milk before government intervened and raised the price from KSh 25 per litre to KSh 33 per litre.
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