Brookside Uganda is raising concerns over what it describes as biased issuance of permits to milk processors by Kenyan authorities. The Kenyatta-owned company accuses the Kenya Dairy Board (KDB) of selectively approving the necessary documents required to move its products from Uganda into the Kenyan market.
However, the KDB’s managing director, Margaret Kibogy, has dismissed these claims, asserting that trade between Kenya and Uganda is proceeding smoothly. Brookside argues that while Ugandan milk brands like Lato and Dairy Top are easily entering the Kenyan market, the KDB has denied import permits for its Dairy Fresh brand.
Traders in parts of the Rift Valley and Western Kenya have confirmed the availability of the Ugandan brands, with industry sources indicating that the KDB has allowed their importation while blocking Brookside’s Dairy Fresh.
These traders are now urging the two governments to resolve the impasse to provide consumers with a broader range of products.
“Consumers are asking why we no longer stock Uganda’s Fresh Dairy products (processed by Brookside Limited), but we are telling them we are not receiving any supplies from Kampala,” said Simon Gathuita, a wholesaler in Bahati, Nakuru.
Brookside Limited’s General Manager in Kampala, Benson Mwangi, reported that the company has not received any response from the KDB regarding the fate of 114 export permits it applied for, despite sending several reminders to the Kenyan dairy regulator.
In response, Kibogy stated, “Brookside is one of our leading processors in the dairy sector and is doing commendable work in supporting farmers and consumers in Kenya.
KDB will continue to support Brookside and all other processors in the sector to ensure the dairy industry remains vibrant and attractive.” She added that the focus, along with dairy stakeholders, is on the export market, noting that in 2023, Kenya exported dairy products worth Sh7.3 billion.
During President Yoweri Museveni’s visit to Kenya on May 17, the two countries signed a communiqué, committing to strengthen bilateral relations for mutual prosperity and development.
However, non-tariff barriers have persisted in trade between the two nations, particularly in the dairy, poultry, fish, sugar, and other agricultural sectors, despite their strong trading partnership and Uganda being Kenya’s largest export market.
According to the Kenya Economic Survey 2024, Kenya exported goods worth Sh126.3 billion to Uganda last year, marking a significant increase from Sh97.2 billion the previous year. Imports from Uganda were valued at Sh41.2 billion, also rising from Sh39.9 billion in 2023. However, ongoing disputes, often attributed to protectionist policies, are said to be preventing traders in both countries from fully capitalizing on the available trade potential.
Reports from Ugandan media highlight that these strained trade relations continue to negatively impact Ugandan dairy farmers, particularly due to frequent bans and the denial of export permits for Uganda’s dairy products. This ongoing issue is seen as a significant barrier to maximizing the benefits of the trade relationship between the two nations.
“We are optimistic that KDB could soon implement the tenets of a communiqué by our two heads of state on May 17, and which would unlock the impasse and allow us to resume export of our products,” Mwangi said on the phone from Kampala.
“We are confident the communiqué signed by the two heads of state is key to unlocking the trade barriers affecting our dairy exports to Kenya,” Mwangi added.
In March last year, the Kenya Dairy Board stopped issuing permits for Ugandan dairy products in the Ken Trade system, despite a notice banning dairy imports issued by the same regulator having been rescinded by the Principal Secretary, State department for Livestock Development.
KDB remained cagey on the issue, with officials remaining tight-lipped on queries for clarification on the matter.
