EAST AFRICAN COMMUNITY

EAC single market good for consumer

In Summary

• The price of eggs has shot up because Kenya has blocked imports from Uganda

• The EAC is supposed to be a common market but member states impose non-tariff barriers to block the movement of goods

Traders at the Wangige egg market on January 21, 2019
Traders at the Wangige egg market on January 21, 2019

The price of a tray of eggs went up from Sh240 to Sh340 last year.

The price of eggs went up because government was controlling imports to protect Kenya farmers. In the last year, Kenya has been blocking agricultural imports from Uganda, including eggs, milk and sugar. It has also blocked maize imports from Tanzania.

Yet the East African Community is supposed to be a common market with free movement of goods, labour and services. Kenya has not officially banned any East African imports but has just created 'non-tariff barriers' to block them.

Uganda's smallholder farmers can undercut Kenya's larger commercial farmers who then protest about "unfair" competition. Government then protects them but, as a result, prices go up and Kenyan consumers have to pay more for milk, eggs and maize.

As a tit for tat, Uganda then started taxing imports of frozen Kenchic chickens. Both sides lose.

Kenya needs a dynamic regional economy for its manufacturing and service industries so it should accept that there will always be winners and losers in any common market. It should allow food imports from Uganda and Tanzania to resume to benefit the Kenyan consumer.

Quote of the day: "To become truly great, one has to stand with people, not above them."

Baron de Montesquieu
The French lawyer philosopher died on February 10, 1755

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