Kenya to impose 16 percent VAT on Uganda milk

Workers filter milk at a milk cooling plant in Meru on May 31 2017. Kenya had raised concerns about the excessive influx of Ugandan milk in Kenyan market. PHOTO | PHOEBE OKALL | NMG

Kenya has resolved to impose 16 percent value added tax (VAT) on milk imports from Uganda as part of measures to protect local dairy farmers and calm the simmering trade tensions between the two neighbouring nations.

The agreement was reached during a bilateral meeting between trade officials from the two countries on Friday.