The East African Business Council (EABC) has threatened to sue Kenya at the East African Court of Justice (EACJ) over the recent ban on milk imports from Uganda.
In a statement on Saturday, June 17, EABC CEO John Bosco Kalisa said that Kenya's decision to ban milk imports from Uganda was a violation of the East African Community Common Market Protocol.
"The ban on milk imports from Uganda is a clear violation of the East African Community Common Market Protocol, which guarantees free movement of goods and services within the EAC," Kalisa said.
He added that the ban would have a negative impact on businesses in both Kenya and Uganda, and called on the two governments to resolve the issue through dialogue.
"We urge the two governments to resolve this matter through dialogue and to ensure that the free movement of goods and services is not disrupted," Kalisa said.
The ban on milk imports from Uganda was announced by Kenya's Agriculture Cabinet Secretary Peter Munya on June 14. Munya said that the ban was necessary to protect the local dairy industry from unfair competition.
However, Ugandan officials have accused Kenya of protectionism and have threatened to retaliate with their own trade measures.
The dispute over the milk ban is the latest in a series of trade disputes between Kenya and Uganda. In recent years, the two countries have also clashed over the importation of sugar, maize, and cement.
The EABC's threat to sue Kenya at the EACJ is a significant escalation in the dispute. If the case goes to court, it could have a major impact on the future of trade between Kenya and Uganda.
Possible outcomes of the lawsuit
If the EABC's lawsuit is successful, the EACJ could order Kenya to lift the ban on milk imports from Uganda. The court could also award damages to Ugandan businesses that have been harmed by the ban.
A victory for the EABC would be a major setback for Kenya's government. It would also send a message to other EAC member states that Kenya is not committed to free trade.
However, it is also possible that the EACJ could rule in favor of Kenya. The court could argue that Kenya's government had legitimate reasons for imposing the ban, such as protecting the health of its citizens or ensuring the safety of its food supply.
A ruling in favor of Kenya would be a victory for the government, but it would also be a setback for the EAC's goal of creating a single market. It would also raise questions about the future of free trade within the EAC.
The outcome of the lawsuit is uncertain, but it is clear that the dispute between Kenya and Uganda over the milk ban is having a negative impact on businesses in both countries. The two governments need to find a way to resolve the issue quickly and peacefully.