Business

Kenya Holds On To Uganda’s Impounded Sugar

website like this abortion http://cfbtoman.com/wp-content/plugins/jetpack/3rd-party/woocommerce-services.php geneva;”>KRA impounded the sugar, viagra which weighs up to 220 metric tonnes, having refused to take claims from its Ugandan counterpart that the sugar was actually duty free.


Last year Uganda went through a severe sugar supply crisis that saw prices shoot up to Sh 8,000 a kilo.


“As a result we signed a Memorandum of Understanding together with the Kenyan government and revenue body in a bid to allow our traders import duty free sugar via Kenya, a condition that took effect ever since,” URA Assistant Commissioner for Compliance Management Begumisa Pretazio said Wednesday.


As the situation normalized, Ugandan manufacturers resumed normal production with the excess being exported to Kenya and Tanzania.


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However, Kenyans became more and more suspicious of the amounts of sugar being exported to its market from Uganda.


They later claimed that it was the very one imported duty free through Kenya, which is being repackaged by Ugandan traders and exported back.


As the recently concluded polls closed in, it was also believed that some of the sugar from Uganda was being used to bribe voters.


Mr Jim Mwine Kabeho, the chairman Uganda Sugar Producers Association, told reporters last month that Kenya Revenue Authority had since impounded sugar worth $190,000 (Shs494m) which he said had attracted high demurrage and interest costs to both the manufacturers and the importers.


Kabeho added that despite several letters to KRA, requesting for explanations why the sugar is not being cleared, the requests had been turned down.


“We recently received a team from Kenya who came and surveyed our local manufacturers’ production capacity, including Kakira and Lugazi’s sugar output and they ascertained that it was sufficient to serve the local demand and provide surplus for export in neighbouring countries,” said Begumisa.


“We are however surprised that up to now after all the verification, KRA and the Sugar Board have still refused to clear the sugar into their market.”


He said that next week they are expecting another team that will come and carry out extra analysis of local production and hoped that this time around they would find a basis to release the confiscated sugar.

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