A trade war broke out between Kenya and Uganda as a result of Yoweri Museveni’s administration levying an additional Ksh3 tax on each kilogram of Irish potatoes exported to Uganda.
The Uganda Revenue Authority announced that the withholding tax on farm produce has increased by 6% in reference to the new charge.
Tens of trucks transporting potatoes from Kenya to Uganda got stranded at the border as a result of their incapacity to pay the additional fee.
It was also claimed that farmers in Eldoret, Kisumu, and Nakuru had received warnings not to try to export their potatoes without paying the taxes.
In defense, URA said that Uganda had devalued the commodity for far too long and that the tax revision was therefore necessary.
On April 12, the new tax concept was initially announced, but Kenyan traders showed little interest in it.
Exporters of the commodity now describe the new tax as hurriedly implemented and outrageous.
Concerns have also been expressed about the possibility of retribution following Uganda’s move to suddenly impose the tax on Kenya, which may severely disrupt trade between the two East African nations.
Eggs and powdered milk from Uganda have previously been banned in Kenya.
President Yoweri Museveni of Uganda gave an explanation of how his nation has lessened its need on Kenyan goods, particularly milk, on Saturday, April 20.
