Published on 24 Sep 2021

Kenya accused of flouting COMESA trade rules

Member states lodge complaints as Nairobi imposes tariffs.

by Johan Burger

Container ship in export and import business and logistics in the ocean.

The Common Market for Eastern and Southern Africa (Comesa) recently encountered a fierce trade dispute involving some of Africa's largest economies. According to a Comesa lobbyist, this followed the Kenyan decision to impose tariffs of up to 25% on goods from the regional economic trading block. According to the Comesa Business Council (CBC), Kenyan customs authorities flouted Comesa guidelines by applying non-preferential customs duties on Comesa origin goods.

Businesses in several Comesa countries reported that their products were stuck at various ports of entry to Kenya. Several countries therefore lodged complaints against Kenya amid the cancellation of pre-existing orders due to the measures imposed by Nairobi. Amongst others, the Egyptian government reportedly directed a complaint to the Kenyan government to protest the decision to impose a 25% tariff on Egyptian exports in violation of the Comesa free trade agreement.

Kenya maintains that it had not imposed any tariffs on goods from Comesa members. The Egyptian government requested a clarification to formulate a response to mitigate the impact of the decision on its exporters. According to the CBC, Kenya’s decision also affected non-Comesa countries that have long enjoyed preferential treatment from the EAC.[1]

 

Additional reading

Ngugi, B. 2020. Confusion over Kenya 25pc tariff sparks Comesa trade row. Business Daily Africa. 20 September 2020. Available at https://www.businessdailyafrica.com/economy/Confusion-over-25pc-tariff-sparks-Comesa-trade-row/3946234-5625458-hsx4y4z/index.html.  Accessed 20 November 2020.

 

References

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