Kenya experienced a significant surge in dairy imports from Uganda, reaching Sh29 billion in the year up to June 2023. This surge, driven by increased production in Uganda and rising demand from Kenyan processors, underscores the strengthening trade ties between the two East African nations.
The Uganda Dairy Development Authority reported that 83 percent of Uganda’s dairy exports during this period were destined for Kenya, solidifying Kenya’s position as the primary market for Ugandan dairy products. Butter, cheese, ghee, UHT milk, yoghurt, and milk powder comprised the range of products exported.
Uganda’s dairy sector witnessed a remarkable 37 percent increase in milk production, rising to 3.85 billion liters, despite challenges such as trade restrictions imposed by Kenya on certain dairy products. Bilateral trade discussions between the two countries persist, reflecting the importance of Kenya’s dairy market for Uganda’s industry.
Despite constraints on milk import permits into Kenya, Uganda’s overall dairy exports surged by 158 percent, totaling $264.5 million (Sh37.86 billion). This growth has contributed to stabilizing milk prices in Kenya, offering consumers greater affordability.
Local supermarkets now offer fresh milk at competitive prices, benefiting consumers across Kenya. The surge in dairy imports from Uganda not only strengthens economic ties but also presents opportunities for further collaboration and growth within East Africa’s dairy sector.
As Kenya and Uganda continue to navigate challenges and opportunities in the dairy industry, the surge in cross-border trade signals promising prospects for regional cooperation and economic development.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
11th March, 2024
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