Uganda backtracks on deal to abolish taxes on Kenyan juices

A supermarket attendant gives a bottle of juice to a child shopping with his parents in Nairobi on December 24, 2018. Kenyan juices are charged 12 per cent duty in Uganda. FILE PHOTO | EVANS HABIL | NMG

Uganda has reneged on an agreement to abolish 12 per cent duty on Kenyan-manufactured fruit juices, and removal of 12 per cent verification fee on Nairobi's pharmaceutical exports, putting a strain on the neighbouring countries' trade ties.

Kampala says it needs the revenue to meet its annual budget, while Nairobi says that the tax makes Kenyan-made goods more expensive in Uganda.