Brookside Uganda Accuses Kenya Dairy Board of Biased Permit Issuance

NAIROBI, Kenya – Brookside Uganda has raised concerns over the biased issuance of import permits by the Kenya Dairy Board (KDB), alleging that the regulatory body selectively approves permits for milk processors.

The dairy processor, owned by the Kenyatta family, claims that while other Ugandan milk brands, such as Lato and Dairy Top, are easily granted permits to enter the Kenyan market, its Dairy Fresh brand has faced repeated rejections.

Traders in regions like Rift Valley and Western Kenya have confirmed the availability of Ugandan milk products, reinforcing Brookside’s claim that the KDB permits the importation of competing brands while blocking Brookside’s products.

This situation has led to confusion and frustration among traders and consumers alike, with some traders calling on both the Kenyan and Ugandan governments to resolve the issue.

Simon Gathuita, a wholesaler in Nakuru’s Bahati area, expressed concern, saying, “Consumers are asking why we no longer stock Uganda’s Fresh Dairy products, but we are telling them we are not receiving any supplies from Kampala.”

Brookside Uganda’s General Manager, Benson Mwangi, stated that the company had applied for 114 export permits, none of which had been granted by the KDB.

Despite multiple follow-ups, Brookside has yet to receive a response from the board, further fueling accusations of unfair treatment.

However, KDB’s Managing Director, Margaret Kibogy, dismissed these allegations, asserting that trade between Kenya and Uganda remains smooth.

She emphasized that the board continues to support Brookside and other processors in their efforts to contribute to the vibrancy and attractiveness of Kenya’s dairy industry.

Kibogy highlighted the country’s focus on expanding its export market, with dairy products worth Sh7.3 billion exported in 2023.

The dispute between Brookside and the KDB underscores the ongoing non-tariff barriers affecting trade between Kenya and Uganda, particularly in the agricultural sector.

Despite efforts to strengthen bilateral relations, including a communiqué signed by President Yoweri Museveni and President William Ruto in May 2024, trade relations between the two nations continue to face challenges.

Ugandan media reports suggest that these barriers are significantly harming Uganda’s dairy farmers.

Mwangi remains hopeful that the commitments made by the two heads of state will soon be honored, allowing Brookside to resume its dairy exports to Kenya.

The company is optimistic that the implementation of the May 17 communiqué could resolve the current impasse.