Trade tensions between Kenya and Uganda

Trade tensions between Kenya and Uganda have escalated, with the Uganda Manufacturers Association threatening to file charges against Kenya at the East African Court of Justice if unfair trade practices aren't resolved by the end of December 2020. Additionally, they have warned of barring Kenyan goods from entering the Ugandan market. Oscar Emasu, a Research Analyst at Crested Capital, shed light on the situation on CNBC Africa. Emasu highlighted that this tension is not unique to Uganda and Kenya but has also extended to Tanzania. The trade friction has historical roots dating back to a shift in focus towards local production in Uganda, leading to increased internal capacity for production. This has resulted in a push for 'Buy Uganda, Build Uganda' policies, which are mirrored in other East African countries like Kenya and Tanzania. However, with each nation promoting its domestic agenda, tensions are bound to arise without urgent harmonization efforts. The current imbalance, with Uganda importing more from Kenya than exporting, underscores the need for resolution to prevent future disruptions. Emasu pointed out that trade barriers imposed by Kenya, such as restrictions on products like sugar and milk from Uganda, hinder the spirit of East African cooperation. He emphasized the importance of addressing these tensions promptly to uphold the values of regional integration. In response to the allegations, Kenya is expected to engage in discussions at both the national and East African community levels to find solutions. Emasu highlighted the significance of technocrats fast-tracking these talks for tangible progress, beyond occasional political meetings between country leaders. The stakes are high for the East African economy as trade disruptions could hamper growth and market access for surplus goods. The potential consequences extend to livelihoods, as traders on both sides rely on cross-border commerce. Failure to address these issues could undermine the region's economic potential and hinder efforts towards deeper integration. Emasu underscored the need for trade harmonization, uniform trade requirements, and improved movement of goods and people to facilitate regional integration. Achieving this vision will require sacrifices and collaborative efforts from all East African nations. Emasu concluded by emphasizing the achievable nature of regional integration if key barriers are addressed promptly, setting the stage for a more united East Africa in the future.