Uganda puts Kenya on the spot for introducing new NTB on highways

Uganda complained that its trucks are being subjected to new rules on Kenyan roads. PHOTO | FILE 

By JAMES ANYANZWA

In Summary

• In May 2016, seven barriers were reported as new. Cumulatively 98 barriers have been resolved since 2009.
• According to latest report, EAC countries have not increased their trade with each other compared with their trade with the rest of the world, largely due to NTBs.
• The 21st EAC Regional Forum on NTBs will be held in Nairobi from June 28 to June 30.

Kenya’s police have banned imported Ugandan trucks from operating on the country’s highways without mud flaps, adding to the growing list of non-tariffs barriers that hinder intra-regional trade.

Uganda reported that the Kenyan police are charging truck drivers a fine of Ksh30,000 ($291.54) for failure to abide by the order.

Uganda brought the matter to the attention of the East Africa’s Sectoral council on Trade, Industry, Finance and Investments in May.

A Kenyan government official who did not want to be quoted said he was not sure which section of the Kenyan traffic law the police were applying.

Kenya is expected to file a response on the matter at the 21st EAC Regional Forum on NTBs that will be held in Nairobi from June 28 to June 30.

“This issue was not exhaustively discussed during the last meeting. Uganda only raised the matter and tabled documentary evidence for the payment. Kenya is expected to give a response in the next meeting in Nairobi,” said the source.

The EAC Secretariat has put in place a time-bound programme for the elimination of NTBs, where deadlines are set by which certain NTBs should be eliminated.

According to the document, in May 2016, seven barriers were reported as new. Cumulatively 98 barriers have been resolved since 2009.

The Council noted that two NTBs have remained unresolved for a long time and require the ministers’ intervention.

These include the requirement that cigarettes manufactured in Kenya and exported to Tanzania must have 75 per cent local content.

The Uganda Revenue Authority attempted to abolish this law in the 2015/2016 financial year but failed.

Malaba parking

The requirement by the Tanzania Food and Drugs Authority that companies exporting to Tanzania must be registered and relabelled has also attracted the attention of the regional Council of Ministers.

Other the hand, Burundi reported that Rwanda and Uganda are forcing trucks to pay double for the certificate of transit goods, meaning instead of paying $200, transporters have to pay $400 for the truck and trailer separately.

Uganda was also accused of building a parking at the Malaba One-stop-Border-Post (OSBP) where transit trucks pay  Ush10,000 ($2.92) when they park without a receipt.