NAIROBI, KENYA: Kenyan manufacturers are frustrated by Tanzania’s push back over duty free sugar imports after the country slapped goods with a 25 per cent duty.
The industry lobby Kenya Association of Manufacturers said that Tanzanian Authorities’ refusal to comply with the EAC Preferential Treatment Code has barred Kenyan goods causing manufacturers losses.
“Refusal to allow entry of our products into Tanzania has reduced business, caused severe losses to businesses in the value chain due to lack of goods and undermined efforts towards EAC integration,” KAM said in a notice.
The lobby said that local industries operating at a lower capacity after Tanzania slapped the duty sparked over the sugar row a move that was also adopted by Uganda.
Kenya has invited the two countries to inspect companies using industrial sugars to produce sweets, cakes and ice creams also known as confectioneries.
KAM members also met with Tanzanian official to iron out long standing trade disputes that have recently rocked the region.
“The meeting in Tanzania was useful and it seems like some of the issues brought forward will continue to be work in progress,” Phyllis Wakiaga said.
The KAM Ceo said that long standing issues such as edible oil products and sugar based products are still thorny and parties will meet at the end of this month to address them.
“Otherwise the fact is there is traction and goodwill from both sides which is an indication for us that we will see some positive changes,” Ms Wakiaga said.
Some of the Issues raised by Tanzania include a claim that Kenya Plant Health Inspectorate Services increased inspection fees on trucks from Sh600 to Sh8000 immediately after resolving the LPG and wheat flower issues.
The Tanzanians also pointed out that their businesses are required to pay Sh500 and Kenyans Sh200 when selling Omena/dagaa at Mabela and Kenhancha markets. Kenya has said it needed evidence to pursue the matter.
During the talks, failure of Uchumi and Nakumart supermarkets to pay Tanzanian suppliers also arose with the government saying it is not obligated to settle private companies debts and suppliers should seek legal redress.
The Kenyans complained about multiple institutions involved in imposing levies and inspection of goods including differences between Tanzania Food and Drugs Authority and Kenya Bureau of Standards.
Kenyan manufacturers were also angered about the lack of Preferential Treatment on Kenyan textiles, edible oil, cement and lubricants.
Kenya had to review rates on textiles from Export Processing Zones last months for Tanzania to consider lifting duties.
