The Kenya National Chamber of Commerce and Industry (KNCCI) announced on Thursday that Uganda has agreed to reduce the clearance fees for trucks transporting potatoes from Kenya.
Previously, the Uganda Revenue Authority (URA) had unexpectedly increased the clearance fee from Ksh15,000 to Ksh50,000, leaving many trucks stranded at the Ugandan-Kenyan border as traders struggled to afford the higher charges.
The Long Distance Drivers and Conductors Association (LODDCA) raised complaints to the Kenyan government, citing daily losses due to the trucks being stuck at the border. The URA defended the substantial increase, stating that the fee had been undervalued for too long.
On May 8, Ugandan President Yoweri Museveni commented that the higher taxation on imported consumer goods was a deliberate move by his administration to protect local farmers.
In response to the situation, the KNCCI engaged with the State Department of Trade in Kenya and the Uganda Chamber of Commerce and Industry (UCCI). The discussions focused on the clearance fee for potatoes, which was causing financial strain for Kenyan farmers and truck operators.
The KNCCI also collaborated with the Local and Transit Drivers Association and LODDCA during the negotiations.
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