Ugandan traders under the Kampala City Traders Association (Kacita) have given the Kenya Revenue Authority (KRA) two weeks to unconditionally release Uganda-bound cargo or they would boycott the Mombasa port.

The ultimatum was issued on Thursday after hours of consultations on the impact of the KRA’s decision to tax all goods that dock at the port upfront.

Previously, traders had been collecting port fees and other handling charges.

The move, according to Kacita, is not only against the spirit of EAC integration but is also hurting Ugandan traders and the country's economy.

Kacita chairman Everest Kayondo said: “By Wednesday there were about 4,000 containers held up at Mombasa, Kenya, because of arbitrary taxes that KRA keeps introducing.”

“And for that we are giving them (KRA) two weeks, beginning immediately (Thursday) to release all Ugandan-bound cargo that (has) cleared all port charges and other logistical fees or else we relocate to the Dar es Salaam Port,” he added.

In addition, the traders said if their conditions were not met, they would put pressure on the Ugandan government to block Kenyan products from getting to the Ugandan market.

The association's spokesperson, Mr Isa Ssekitto, said they would write a formal letter to the governments of Uganda and Kenya outlining the traders’ resolutions.

The letter, he said, would also remind Kenya to pay Ugandan traders $14 million (Ush40 billion) that they lost during the post-election violence of 2007/08 in Kenya.

READ: Ugandan, Rwanda firms revive $47.5m poll violence claim

However, Uganda Revenue Authority commissioner for Customs Richard Kamajugo told the Daily Monitor the piled-up cargo at the port had nothing to do with the Single Customs Territory.

The cargo, which he said consists of almost 100 [containers], has been held because KRA wants traders to pay all tax dues upfront.

Amb Julius Onen, the Permanent Secretary in the Ministry of Trade, confirmed the development, saying officials were trying to handle the matter at a high level.

“Before (the) close of the week or earliest next week, this issue is likely to have been sorted (out),” he said.

On Wednesday, Ugandan President Yoweri Museveni warned Kenyans that he would block the country’s goods from entering Uganda if the Kenya Revenue Authority did not stop blocking Ugandan exports from entering Kenya.

Museveni said the move was not only “myopic” but contravenes the East Africa Community Protocol.

“We buy a lot of goods from Kenya. Some of those (KRA) officials are narrow-minded. They wanted to block our sugar. Now they have gone for our chicken. If I say no more, Kenya will feel it...,” he said.

READ: Museveni tells Kenya not to block Uganda's sugar

Speaking at the launch of the Hudani Manji Chicken plant in Semuto, Nakaseke District, President Museveni said he would petition the Kenya government to resolve the matter.

“I shall sort it out with President Uhuru Kenyatta,” he said.

KRA officials said on Thursday evening they would comprehensively respond to Mr Museveni’s comments on Friday.

Daily Monitor