Kenya Dairy Board under scrutiny for selective milk import policies

KENYA – The Kenya Dairy Board (KDB) faces criticism over allegations of selectively allowing milk imports from specific Ugandan processors while blocking products from others, including Brookside Limited, which operates in Kenya and Uganda.

This selective import policy has stirred controversy, especially among traders and consumers in parts of the Rift Valley and western Kenya.

Local traders have confirmed the availability of Uganda’s Lato and Dairy Top milk brands in the Kenyan market.

However, Brookside Limited’s Fresh Dairy brand, which operates in both countries, has been conspicuously absent. Industry sources indicate that while KDB has permitted the import of Lato and Dairy Top brands, it has denied import permits for Fresh Dairy products.

Simon Gathuita, a wholesaler in Bahati, Nakuru, expressed the concerns of many traders: “Consumers are asking why we no longer stock Uganda’s Fresh Dairy products, but we tell them we are not getting supplies from Kampala.”

The situation has led to accusations that the Kenyan government is stifling trade with Uganda by favoring specific processors.

 “The government of Kenya is stifling trade with Uganda by favoring certain Ugandan processors in the importation of dairy products,” Ben Okwama, a trader in Kisumu, claimed.

Brookside Limited’s General Manager in Kampala, Benson Mwangi, expressed frustration over KDB’s lack of response regarding the company’s application for 114 export permits.

“We are optimistic that KDB could soon implement the tenets of the communiqué by the two heads of state on May 17, which would unlock the impasse and allow us to export our products,” Mwangi said.

Reports from Ugandan media highlight the ongoing trade tensions between the two countries, which continue to hurt Ugandan dairy farmers. T

The communique signed by the heads of state of Kenya and Uganda is key to resolving the trade barriers affecting Uganda’s dairy exports to Kenya.

Despite the Principal Secretary for State Development for Livestock Development rescinding a notice banning dairy imports issued by KDB, the KDB stopped issuing permits for Ugandan dairy products in March last year.

This has resulted in continuous bans and denial of export permits for Ugandan dairy products.

Earlier this year, Brookside warned that the Ugandan government is facing potential yearly losses of US$77.2 million due to the ongoing impasse with Kenya over milk exports.

Benson Mwangi revealed that the company has submitted 114 export permit applications since March 2023, all of which have been denied, suspended, or delayed by Kenyan authorities.

 “I can’t imagine the impact on the milk and products value chain as a result of being denied permits to export. People supplying packaging materials, our regular transporters, and even farmers are all experiencing loss, if not a shortage of income, because of this situation,” Mwangi emphasized.

He also noted that Brookside has been operating below 50% production capacity and has had to lay off over 200 employees.