Kenya, Uganda’s biggest cross-border market, is importing commodity cheaply under Comesa rules.

Uganda farmers pay price of duty-free sugar policy

But the measure has sharply eaten into Uganda’s regional sugar export market.
Combined, the market size for Uganda’s sugar in Kenya and Tanzania is estimated at 110,000 tonnes annually, with Kenya consuming the lion’s share of 90,000 tonnes.
“Kenya is Uganda’s biggest regional sugar export market, but the country currently has shifted its preference to imported duty-free sugar,” Jimmy Kabeho, chairman of Uganda Sugar Manufacturers Association said.
Commissioner of Customs at the Uganda Revenue Authority (URA) Abel Kagumire said sugar millers have not shared the smuggling information with tax enforcers for action.
“For the past three months, URA has not intercepted any consignment of smuggled sugar through Malaba and Busia borders,” he said.