Kenyan truck ferrying irish potatoes to Uganda slapped with 233.3% clearance fee hike

Source: Capital FM Kenya
Author: Ken Muthomi

NAIROBI, Kenya, April 24 - The Kenya National Chamber of Commerce and Industry (KNCCI) has called out for the reduction of clearance fees for Kenyan trucks ferrying Irish potatoes into Uganda.

In a statement, KNCCI stated that the unilateral hike of the clearance fee from Sh15,000 to Sh50,000 is unsustainable and that immediate action needs to be taken by the Kenyan and Ugandan governments.

KNCCI has further stressed that the hike does not only impose a significant financial burden on Kenyan exporters but also contradicts the common union tariff of the East African Community (EAC).

"Notably, the transport cost from Nakuru ( where Irish potatoes are currently sourced from) to Kampala is ksh 60,000, therefore a clearance fee that is 83% of the transport cost is unsustainable," it stated.

It has further pointed out that the hike has not only disrupted the trade patterns between the two countries but also threatened the competitiveness of Korean exporters in the Ugandan market.

KNCCI has stressed that the swift resolution of the matter will not only enable uninterrupted trade flow between the two countries but will also boost mutual agricultural benefits.

"We are collaborating, with the state Department of Trade in Kenya, the Uganda Chamber of Commerce and Industry(UCCI), the Local Transit Drivers Association, as well as Long Distance Drivers and conductors Association(LODDCA) to promptly address this issue and ensure uninterrupted trade flow between Kenya and Uganda," they stated