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In a complaint to the trade ministry here, UTEA said after clearing their dues at the Mombasa entry point, the traders were charged additional fees of between 500 and 1,000 Kenyan Shillings
"The same tea is paid for at Mombasa. It is a recent development that is impeding regional trade," Raymond Agaba, the acting commissioner in charge of internal trade, revealed on Friday.
"The double taxation comes after Ugachick, a local poultry breeder and others, were suspended from selling their chicks in Kenya," he said.
Asked what Uganda's options are to correct the matter, Agaba said: "Trade should be flowing without any barriers in region."
But he quickly added: "We (Uganda government) don't want to create a misunderstanding by retaliating."
Officials at the Kenya High Commission in the capital, Kampala, told PANA that the trade ministries of the two countries were discussing the problem.
On the contrary, Uganda Revenue Authority released trade statistics showing that landlocked Uganda was reaping from the EAC Customs Union.
Trade among Uganda, Kenya and Tanzania had increased by 20% to US$1.9b in 2006 from US$1.52b in 2004.
Uganda's imports from Tanzania increased to sh46b in 2007 from sh28b in 2005, while imports from Kenya also grew to sh157b in 2005.
Upon signing on to the faltering Customs Union, the five EAC member states agreed that goods from a member country should not be sold in another country at a lower price to avoid suffocating local industries.
But there remains both tariff and non-tariff barriers posing impediments to trade flow.
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