New team to handle regional trade disputes

The Government has formed a Cabinet sub-committee to look into trade disputes with other East African Community (EAC) member states.

The committee, which is being headed by the Cabinet Secretary for EAC and Regional Development Adan Mohammed, comprises top-level officials from the Treasury, the Foreign Affairs and Trade ministries as well as the Office of the Attorney General.

The formation of the committee comes in the wake of Kenya’s relentless bid to capture the 70 million East African consumer market which has been derailed by virulent disputes with Uganda, Burundi and most notably Tanzania.

According to Mr Mohamed, the ease of doing business in the region is being frustrated by the disputes, with Kenya standing to lose the most if a permanent solution is not found soon.

Resisted move

“We have had issues with Tanzania which has been rejecting our textiles, confectioneries and some other manufactured products. Burundi has put an embargo on our steel. We reached a point where we saw it necessary to form this top-level committee which can liaise with the EAC secretariat and the member countries to end the disputes,” said Mohamed at a press briefing in Nairobi yesterday. The country has in recent times also had difficulties with Ugandan importers who use the port of Mombasa.

The importers want to have access to Kenya Revenue Authority’s (KRA) Simba system, while clearing their goods.

They have the backing of their own tax body - the Uganda Revenue Authority on the demand.

Kenya has resisted the move since it does not want to expose its tax information to foreigners.

Tanzania has, on the other hand, been giving Kenya ultimatums to send customs officials to the port of Dar es Salaam.