{UAH} The paradox that is Uganda. What if....

Folks:

Reflect critically about the paradox that is Uganda.  Why?  Kenyan authorities including President Uhuru Kenyatta ahs asked the treasury to impose a 16% VAT on perceived-read competitive-milk imports from Uganda that have apparently hurt the Kenyan farmers.   Let us hear  from Mr Kademeli, Mr Bwanika , Dr Ssemalulu and Mr Ekwelu among others on the ground. What is going on?  Ugandan milk exports disrupting the Kenyan milk market. Where is this milk produced in Uganda? who is producing it? Is it by individual farmers, I mean those with less than 5 cows? How is the milk collected? Those days Ugandan milk used to be adulated with water. Has  that changed? Are their penalties against such cheating activities?

In short, why is it the case that in spite  of govt indifference -you can comment on that too-Ugandan farmers not just in the milk sector but maize sector as well are thriving so much so that maize and milk exports to Kenya have substantially DISRUPTED the Kenyan market forcing the state to intervene.

Please let us stay on the issue and assume it is true because it is true  that milk and maize imports from Uganda have flooded the Kenyan market and forced Kenyan farmers to politicize the issue to the extent where their president had to act. 

Ironically, the tanga tanga group aligned to WSR have been saying UK does not care about the plight of Kenyan farmers many of whom are in GEMA land and of course Rift valley. But guess who is being  accused of importing milk and maize from Uganda-I suspect mostly from Sebei?  People close to WSR if not WSR himself . So they are importing maize and benefiting financially but also trying to cash in politically. Kyonka politics.

The other irony is that the Kenyatta family are major players in the milk sectors in Kenya and Uganda too having bought the former Ugandan dairy factory. The govt ordered New KCC to pay  Kenyan farmers a guaranteed price of Kshs. 33 up from Kash 25. But what about the Kenyatta family owned Brookside? Will it follow suit and match KCC?

That said the issue is serious and has implications for the survival of the Kenyan farmers.   I suspect Uganda which is able  to out compete the Kenyan  farmer on low production cost will also impose some form of tax on Kenyan imports.  Basically, what Kenyan authorities are doing to appease  farmers in the short run has long term implications for the region.

They are trying to appease the inefficient Kenyan farmer. What happened to the notion of comparable advantage? Why cannot Kenyans accept that may be Ugandan farmers despite the clueless of their leaders enjoy a significant comparative advantage in agriculture . Folks, if you hear Kenyan TV pundits Ugandan milk, maize, eggs and even rice have DISRUPTED the Kenyan sectors. 

Ordinarily that is not bad thing thing but there is politics. What about the Kenyan  consumer who will certainly have to pay  more to afford ugaali and maziwa. 

Anyway, my interest is elsewhere. How is the Ugandan farmer able to do it? why are they able to do it? What is the role of middle men and women in this? Who is exporting milk, maize, rice and egs to Kenya ? Are they ordinary farmers or some organized entities?

Now the paradox, what if Ugandan authorities cared about agricultural farmers? If unsupported, disorganized Ugandan farmers are able to produce so much to disrupt the well sported-read spoiled Kenyan farmers-Kenyan market, what would happen if the Ugandan state gave farmers a helping hand of some sort?  How can it be that perceived cheap imports from Ugandan have all but destroyed the maize market in Kenyan yet some claim Ugandans are hungry or food insecure? Hello.

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What are we missing? And what are the bumbling opposition politicians in Uganda saying ? I mean if Ugandan farmers or produce is credibly disrupting the powerful Kenyan market in maize, milk and eggs what does that say about Ugandan farmers? Soil?

wbk