The ongoing protests in Kenya have significantly impacted Ugandan traders, causing disruptions in the flow of goods and escalating prices. Despite government reassurances, concerns remain high as the situation unfolds.
The Trigger: Kenyan Finance Bill Protests
Protests erupted in Kenya following the introduction of the Finance Bill 2024, which proposes new taxes and hikes on existing ones. This legislation has faced widespread criticism, triggering demonstrations in major cities like Nairobi, Kisumu, and Mombasa.
Economic Interdependence
Uganda relies heavily on Kenya for its imports and exports, with the port of Mombasa serving as a crucial gateway. Any disruption at this port directly affects Uganda’s economy, particularly in terms of raw materials and essential goods.
Impact on Ugandan Traders
Issa Sekitto, spokesperson for the Kampala City Traders Association (KACITA), highlighted the adverse effects on Ugandan traders. The protests have already caused delays and potential losses, particularly for non-perishable goods. Richard Sserwadda from the Regional Lorries and Drivers Association advised traders to proceed with caution to avoid further losses.
Historical Context and Current Concerns
The memories of the 2007-2008 post-election violence in Kenya still linger, reminding traders of the potential dangers. During that period, many cross-border transporters suffered significant losses, and some were never compensated. The current situation threatens to repeat history if the protests persist.
Recommendations for Ugandan Traders
Trade leaders in Kampala have urged members to avoid nighttime cargo movements and to proceed cautiously. The Uganda Manufacturers Association reported daily losses amounting to millions of dollars due to the disruptions in Kenya. It is crucial for traders to stay informed and adapt to the evolving situation to mitigate further losses.
In conclusion , the protests in Kenya serve as a stark reminder of the economic interdependence between East African nations. Ugandan traders must navigate these challenging times with caution and resilience, hoping for a swift resolution to the unrest in Kenya.
