As the global economy continues to shift and evolve, countries need to have strong trade partnerships to thrive. In a bid to resolve the current challenges facing Ugandan exporters of dairy, particularly Ultra-High Temperature (UHT) milk products, the Presidential Advisory Committee on Exports and Industrial Development (PACEID) met and held discussions with the High Commissioner of the Republic of Kenya to Uganda, H.E. Joash Arthur Maangi. The meeting took place at PACEID offices in Naguru on Thursday, March 13, 2025.
Uganda, a major milk-producing country, has been hit hard by Kenya’s suspension of UHT milk products in November 2024. This suspension has severely impacted Ugandan milk exporters, as Kenya is a significant importer of milk globally. Kenya imported milk worth USD 46.366 million globally. Uganda contributes 99.97% to these imports with approximately 81,000 tons annually worth USD 46.35 million. This shows a high demand for Uganda’s UHT milk in Kenya which is being affected by delays in the availability of permits.
Odrek Rwabwogo, Chairman of PACEID noted that one of the biggest challenges facing dairy exporters is the denial and delay in issuing export permits by the Kenya Dairy Board (KDB). “Uganda’s dairy exporters submitted over 100 permits in March 2024. Many of these permits have been denied or delayed without any explanation from KDB. There has been no resolution, leaving many companies struggling with idle investments and mounting debts. Letters from the Uganda Manufacturers Association to the Ministry of East Africa Community have raised a similar complaint.”
Some of the Ugandan milk processors who have been affected include Muhangi Dairy Farm, Lakeside Dairies, Brookside Limited (Fresh Dairy), Rainbow Dairy Uganda Limited, and Amos Dairies Limited among others. The lost export opportunities as a result have led to projected costs of approximately 77.2 million USD annually. This unfortunately has affected all the value chain players who rely on milk and milk products for consistent income from exports.
Ambassador Maangi expressed concern over this matter and promised to follow up on the issue with his government. He also requested information on the specific Ugandan companies that have been affected by these delays and denials. He was accompanied by fellow diplomat, Julius Kiema Kilonzo who previously served as Ambassador to Uganda.
“Moving forward, the Kenyan government must address the delays in issuing export permits and work towards finding a solution that benefits all parties involved. The dairy industry is a significant contributor to the economies of our countries.” Ambassador Maangi stated.
Economic and Trade Implications:
In Q1 and Q2 of the 2024/25 fiscal year, UHT milk exports from Uganda to Kenya through the Busia border amounted to USD 13.075 million and USD 14.887 million, respectively. The refusal or delay in issuing permits could significantly reduce trade volumes, affecting both Ugandan exporters and Kenyan consumers who rely on these imports for affordable dairy products.
Over twenty Kenyan companies that have been relying on milk supplied by Ugandan dairy companies are struggling to fulfill the demands of their customers.