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Uganda slashes out truck drivers' fee for Kenya in new agreement

KNCCI Advocacy desk reports that the clearance fee for trucks carrying potatoes from Kenya to Uganda has been reduced following tireless advocacy efforts in collaboration with our partners. Photo: X/KNCCI

By Barack Oduor | Friday, May 24, 2024

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

The Uganda Revenue Authority has agreed to reduce the clearance cost placed on Kenyan truck drivers, thereby advancing bilateral economic relations between Kampala and Nairobi.

The decision of Uganda's taxman follows their meeting with the Kenya National Chamber of Commerce and Industry (KNCCI).

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KNCCI indicates that the clearance fee has been reduced by half in a move that will be of great relief to the truck operators.

Before the action, the truck drivers were expected to pay Sh50,000 but following the meeting, they will be required to pay Sh25,000.

"KNCCI advocacy desk is happy to report that the clearance fee for trucks carrying potatoes from Kenya to Uganda has been reduced from Sh50,000 to Sh25,000 following tireless advocacy efforts in collaboration with our partners," said the head of KNCCI, Eric Ruto.

According to KNCCI, 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 Sh15,000 to Sh50,000.

Following concerns raised by farmers and affected drivers, KNCCI convened a meeting that 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.

The trade lobby has advised 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."

During his state visit to Kenya, Uganda's president Yoweri Museveni signed a tripartite agreement on the importation and transit of petroleum products through the two countries.

During the occasion, KNCCI concurred that the agreement would 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," said Eric.