Kenyan Traders Struggle with Ugandan Border Extortion – The East Observer

Summary:

• Kenyan fish exporters face extortion by Ugandan officials at border checkpoints, hindering smooth trade with the Democratic Republic of Congo.

Kenyan fish exporters have raised concerns about alleged extortion by groups in Uganda. Reports suggest that certain officials are demanding significant sums of money from traders transporting salted fish from Kenya to the Democratic Republic of Congo (DR Congo) through the borders of Busia, Mpondwe, and Elegu.

Exporters claim that officials from the Busia border fisheries department of the Ministry of Agriculture in eastern Uganda, as well as those at the Mpondwe border point in western Uganda, are requesting payments of at least Shs31 million from each truck in order for them to transit from Uganda to DR Congo. Failure to comply with these demands results in the impoundment of the consignment, accompanied by fabricated charges and substantial fines.

Hassan Omari, a Kenyan fish exporter, highlighted that the export process has been further complicated by restrictions imposed by Ugandan officials, limiting fish exports to only four designated companies. This policy impedes the ability of Kenyan exporters to conduct business smoothly and amounts to interference with international trade.

Formerly, exporters paid UShs6 million as “hire fees” to truck owners, a cost that has now escalated to UShs9.8 million per company truck. Additionally, traders are charged Shs8 million for each consignment by company owners.

Sarah Nabwire, another fish exporter, reported experiencing challenges in obtaining a fish export license from the Ugandan Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF). Despite paying USh2 million for a license last December, she has yet to receive it and is compelled to use the services of the four designated companies, which impose exorbitant fees for truck hire.

At the borders, additional payments are demanded, including USh3.5 million for a “clearance stamp” at the Busia border and USh5.2 million to a clearing agent. At Kikorongo Mpondwe border, USh1.5 million is allegedly paid to “sort out” Fisheries Protection Unit (FPU) officers, with an extra USh3.5 million paid for fish guarding.

Maj Joseph Labu Cherop, an intelligence officer at the FPU, stated that he was unaware of any extortion by his team but pledged to investigate the matter further.

Seif Yusuf, another Kenyan fish exporter, asserted that the companies and trucks licensed for fish transportation in Uganda either belong to high-ranking Ugandan officials in Entebbe or are associated with cartels collaborating with MAAIF officials.

International customs laws stipulate that goods under transit should undergo customs clearance formalities at the point of destination. Under Uganda’s single customs territory agreement, goods under transit are not subjected to taxes or levies until they reach their final destination.

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