URA to UMA: Our hands are tied on Kenyan traders in Uganda

By Joseph Okul 

The Uganda Revenue Authority (URA) has reaffirmed its commitment to enforcing regional trade agreements, stating that it will not take action against legally compliant traders, including Kenyan merchants operating in Uganda.

During a heated discussion between URA officials and the Uganda Manufacturers Association (UMA), Emmanuel Odongo, General Manager of Jubico Industries Lira, expressed concern about Kenyan traders buying agricultural products at retail prices directly from farmers in the Lango sub-region.

He urged URA to intervene and implement protective measures to safeguard local manufacturers.

In response, Yasin Lwaga, URA’s Regional Supervisor for the East Nile Region, emphasized that under the East African Community (EAC) trade agreement signed by Uganda, Kenya, Tanzania, South Sudan, Rwanda, Burundi, and the Democratic Republic of Congo, citizens from member states are legally allowed to engage in cross-border trade as long as they possess the required export licenses.

He clarified that URA’s mandate is to protect local manufacturers from unfair competition by imposing high taxes on imported goods and enforcing strict anti-smuggling measures.

Patrick Komakech, a policy analyst for the chemicals and allied sector, acknowledged the frustrations of Ugandan manufacturers but pointed out that their fragmented approach weakens their advocacy.

He revealed that UMA is working on a trade remedy bill to address such trade conflicts.

Similarly, Michael Kaija, a policy analyst for agricultural produce, noted that UMA recently engaged local manufacturers to discuss the issue and is planning further consultations before submitting a formal report to the Ministry of Finance for policy intervention.

While Ugandan manufacturers continue to advocate for protectionist measures, URA maintains that regional trade laws must be followed, forcing local industries to seek alternative strategies to compete effectively.