Kenyan manufacturers frustrated by Tanzania because of import duties :: Kenya

NAIROBI, KENYA: Kenyan manufacturers are frustrated by the fact that Tanzania has postponed duty-free sugar imports after the country struck goods with a 25 percent duty.

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The industry lobby The Kenya Manufacturers 'Association said the Tanzanian authorities' refusal to comply with the EAC's preferential treatment code has blocked Kenyan goods causing losses to manufacturers.

"The refusal to allow the entry of our products into Tanzania reduced the business, caused severe losses to value chain companies due to lack of goods and hampered the efforts of companies. integration of the EAC ".

The lobby said that local industries operating at a lower capacity after Tanzania slapped the duty unleashed on the sugar row a move that has also been adopted by Uganda.

Kenya has invited both countries to inspect companies that use industrial sugars to make sweets, cakes and ice cream, also known as confectionery.

KAM members also met with a Tanzanian official to resolve long-standing trade disputes. Region.

"The meeting in Tanzania has been useful and it seems that some of the problems put forward will continue to be ongoing," said Phyllis Wakiaga.

The President of KAM said that longstanding issues such as edible oil products and sugar products are still thorny and that parties will meet at the end of this month to remediate.

"If not, the fact is that both sides are in agreement and goodwill, which is an indication to us that we will see positive changes," said Ms. Wakiaga

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Some of the issues raised by Tanzania include a claim that Kenya's Phytosanitary Inspection Services increased inspection fees on Sh600 trucks at Sh8000 immediately after solving the problems of LPG and wheat flower.

Tanzanians also pointed out that their companies are required to pay Sh500 and Kenyan Sh200 when they sell Omena / dagaa to the Mabela and Kenhancha markets. Kenya said that he needed evidence to pursue the case.

During the talks, Uchumi and Nakumart supermarkets did not pay Tanzanian suppliers. The government said it was not obliged to settle the debts of private companies and that suppliers should seek compensation.

Kenyans complained about the multiplicity of institutions involved in the imposition of levies and inspection of goods, including the differences between the Tanzania Food and Drugs Authority and the Kenya Bureau of Standards.

Kenyan manufacturers were also outraged by the lack of preferential treatment on Kenya's textiles, edible oil, cement and lubricants.

Kenya has had to examine textile rates in export processing zones in recent months for Tanzania to consider raising duties.

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