Uganda slashes fee imposed on Kenyan truck drivers in new deal

Uganda Revenue Authority has agreed to slash the clearance fee imposed on Kenyan truck drivers following a meeting with the Kenya National Chamber of Commerce and Industry (KNCCI).

In a statement on Thursday, May 23, KNCCI reported that the clearance fee has been reduced by half. Initially, Kenyan truck drivers were expected to pay Ksh50,000 but following their intervention, they will be required to pay Ksh25,000.

"KNCCI advocacy desk is happy to report that the clearance fee for trucks carrying potatoes from Kenya to Uganda has been reduced from Ksh50,000 to Ksh25,000 following tireless advocacy efforts in collaboration with our partners," KNCCI statement read in part.

According to KNCCI led by the newly elected President Eric Ruto, Uganda Revenue Authority had increased the withholding tax for Kenyan trucks hauling potatoes from USD 32 to USD 315 which raised the total clearance fee from Ksh15,000 to Ksh50,000.

How the deal was struck

Following concerns raised by farmers and affected drivers, KNCCI convened a meeting which involved officials from the State Department of Trade in Kenya and the Uganda Chamber of Commerce and Industry (UCCI).

During the meeting, all the players resolved to initiate talks with President Yoweri Kaguta Museveni's administration on revising downward the clearance fee. Their appeal proved fruitful after the Uganda Revenue Authority announced a clearance fee reduction.

"KNCCI reached out to the State Department of Trade in Kenya and the Uganda Chamber of Commerce and Industry (UCCI) to address the concern which was causing a nightmare for farmers and truck operators. We appreciate the support and collaboration of the Local and Transit Drivers Association as well as the Long Distance Drivers and Conductors Association (LODDCA) in the advocacy campaign," KNCCI explained.

Nonetheless, KNCCI has urged members of the East African Community to uphold various common tariffs to avert cases of trade wars and barriers.

"Moving forward we urge governments under the East African Community to respect and uphold the common union tariff of the East African Community (EAC) which aims to promote seamless trade and economic integration among member states."

Museveni signs deals in Nairobi

The new deal for Kenyan truck drivers comes days after President William Ruto and his Ugandan Counterpart Museveni signed new bilateral deals aimed at mending the strained diplomatic relations between the two nations.

While on a state visit to Kenya, Museveni signed a tripartite agreement on the importation and transit of petroleum products through the two countries. Speaking at State House, Ruto said the agreement will enable Uganda to import refined petroleum commodities directly from the producer countries.

“We have just witnessed this agreement which enables the Uganda National Oil Company Ltd to import refined petroleum commodities directly from producer jurisdictions thus bringing to an end the challenges faced by the sector in Uganda," Ruto stated.

Both Heads of State expressed confidence that the agreements will consolidate the strong relationship between the two countries and anchor it on a transformative trajectory.

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