Uganda tea exporters reject Kenya Revenue Authority proposal

Monday 25th July 2011

The Ugandan tea exporters have opposed the proposal by the Kenya Revenue Authority to reintroduce bonded warehouses to replace the existing transit warehouse systems.

Vinod Vadera of the Kakonde tea estate in Uganda said the move was retrogressive and would not be beneficial to tea exporters.

"We had struggled through the East African tea traders association to remove the bonded warehouse system to what is currently present and we oppose the move to go back," he said

Vadera was speaking at the closure of the First African tea conference at the Whitesands hotel in Mombasa.

The exporters said the failure in the system was brought about by inefficiency at the customs office, and removing the system would be punishing them unfairly.

"Customs officials are the ones at fault here. They take up to two years to inspect the warehouses and find the systems being misused when they have the capacity to inspect the system every month," he said.

Vadera said the move would increase costs unlike the current system transit warehouse systems.

Less competitive

"Bonded warehousing is likely to increase the cost for Ugandan exporters, which will make the tea less competitive," he said.

Valdera also pointed out that bonded warehouses would create procedural delay in the release of tea that would further increase the cost for tea exporters.

"With bonded warehouses you need customs officers to physically release them and some even delay for two or three days," he said.

The exporters also raised alarm on the considerable delay at the Kenya-Uganda border that makes them waste time they would have spent participating in the Mombasa auctions

"A lot of time is wasted in issuing of receipts, verification and clearing at the Malaba post, and this makes Ugandan exporters arrive late for auctions, becoming less competitive," he said.

Vadera also called for the removal of re-export charges, saying they were paying for products that have already been sold off to third parties. Re-export charges should be directly put to the person who has won at the auction from Kenya because at that time Ugandans have sold of the tea and it is no longer in their hands," Vadera said.
Article by: Sandra Chao Adopted from: The Standard Media

The 2011 AGM

Monday 4th July 2011

The AGM was a success, we were able to capture some moments, here are some of them.


Hope you found them lovely.

Alur Adviced to Grow tea

Tuesday 24th May 2011

Fred Jacan Omach, the outgoing finance state minister, has urged the
residents of Zombo district to grow coffee and tea to eradicate
household poverty and create employment for the youth.

“We should increase the growing of coffee and embark on the growing
of tea under the new sh15b pilot project. Our coffee will be used for
blending other coffee brands,” Omach said at the swearing-in party for
Stanley Omwonya, the Okoro County MP. Omach said in Kampala last week
that the high value coffee was grown in Bugisu in eastern Ugandan and
Zombo in West Nile due to their fertile soils and climate.

He noted that when the Nyagak Hydro-power project is completed,
factories will be established to process the various crops to add value
for external markets.

Omach said the Government had earmarked sh5b for the construction of a tea factory in Zombo district.

“Northern Uganda will develop like any other region if the
construction of Nyagak and Karuma power projects and the reconstruction
of the railway lines are completed,” Omach observed.

The party was attended by Nebbi and Zombo district officials, religious and cultural leaders from the region.

The Prime Minister of Alur Kingdom, Dr. Edwin Wathum Jalkwiyu called
up on politicians from the region to work together with the cultural
leaders to uplift the living standards of the local people .
Wathum said, “It’s only through development programmes that we can
fight poverty among the Alur communities in Uganda and the DR Congo. We
want unity which can bring together the Alur people in the dispora and
those at home.”

This article was written by By Ayiga Ondoga  which appeared in the New Vision of 25th May 2011