Uganda to collect taxes from Mombasa

Kenyan President Uhuru Kenyatta (L), and President Yoweri Museveni (C) pay attention in respect of the National Anthem at State House, Entebbe. Photo by Rachel Mabala. 

By George Omondi (Monitor correspondent)

In Summary

Firms have argued that putting the revenue officials in one location will end trade diversion and reduce the disputes.

NAIROBI - Uganda and Rwanda are set to join Kenya in relocating top customs officials to Mombasa Port in a new pact seeking to boost the flow of goods and curb dumping of cheap imports in East Africa.

Under the deal struck by President Uhuru Kenyatta, Uganda’s Yoweri Museveni and Rwanda’s Paul Kagame, Kenya has undertaken to create space for its partners to set up customs clearing units.

“The Presidents agreed to implement a programme for Uganda to collect customs duties before goods are released from Mombasa port. For goods destined for warehousing in Uganda importers would continue to execute the general bond security,” a communique issued after the Entebbe meeting said.

However, this will be done after ongoing reforms at the port, which include amending Kenya Ports Authority (KPA) Act to recognise East African Community (EAC) as a single customs territory, space rationalisation and expansion of berths. The agreement reached on Tuesday will also see joint revenue teams being stationed at Oluhura and Mpondwe border points.

The three leaders said they would monitor progress of the reforms which have strict time lines through a meeting every two months.

Once fully implemented, the three countries will effectively be operating as a single customs territory ahead of the plan by EAC heads of states to extend it to the whole region - including Tanzania and Burundi - by November.

Firms have argued that putting the revenue officials in one location will end trade diversion and reduce the disputes that have arisen out of products bilateral deals that member states sign with non-EAC states.

The Uganda and Rwanda customs officials have, for instance, locked out Kenyan rice farmers from selling the commodity across the border on fears that cheap Pakistani rice could also find its way to their markets.