How poor state of Lwakhakha border is hampering trade

Residents and traders at the Uganda – Kenya border export zone at Lwakhakha in Namisindwa District in Bugisu have said the poor state of the facility is hampering cross- border trade.

Lwakhakha border, which connects Uganda to Bungoma County in Kenya, handles a variety of goods, especially agricultural products.

However, it lacks facilities such as warehouses, scanners, drying and cooling facilities. This makes it hard for traders to realise profits .

The point is also known for rampant smuggling through porous border routes, thus causing the government to lose revenue.

Mr Wakabi Matayo, a fresh produce dealer, said the lack of storage facilities at the border affects the quality of their products destined for international markets.

“The border is closed as early as 10pm and our perishable goods get spoiled before they access the market,” he said.

He said the traders are also asked to offload their goods from the trucks for checking by the authorities due to lack of a scanner at the border point.

“We are asked to spread on the ground our goods such as avocado, lemon and tomatoes for checking. This affects the quality of our produce but if there was a scanner, vehicles would just be passing through it without offloading and loading again,” he said.

The traders also want the Ugandan government to engage their Kenyan counterparts on why Ugandan fresh produce dealers are highly taxed by the Kenya Plant Health Inspection Services.

The traders are often asked to pay Ksh10,000 per week.

Ms Amina Mbabazi Kabazunge, the spokesperson of the cross-border women cooperative that brings together more than 230 individuals, said stringent laws and the money asked by the immigration office has forced most of their members into smuggling.

“The immigration puts a lot of strict measures, even for vulnerable women who want to cross and lawfully carry out trade,” she added.

Mr Ignatius Kamundama, the Uganda Clearing Agents Association chairperson at Lwakhakha export zone, wondered why trucks carrying goods from Kenya are not allowed to pass through the area.

Daily Monitor learnt that trucks with containers are not allowed to pass through Lwakhakha zone because the road only handles less than 15 metrictonnes.

“For Ugandan traders with goods above $2m, you are required to go up to Nairobi to get a certificate and you need a Kenyan registered company to facilitate your trade, which is becoming hard for the traders, and we request that such offices be brought nearer to traders at this Lwakhakha border,” Mr Kamundama said.

Mr Dennis Muganga, the Uganda Revenue Authority supervisor for Mbale sector, said they have engaged with the Kenyan colleagues through the Joint Border Trade Committee meetings over issues raised by the Ugandan traders in vain. “We have not realised any change yet and frustrations against Ugandan traders increase every day,” he said.

The traders were raising concerns to the State Minister for Trade, Gen Wilson Mbadi, during his visit to the Lwakhakha export zone last week.

Gen Mbadi revealed that he is currently traversing different border points to assess the challenges and Lwakhakha export zone is one of the points listed for upgrade to facilitate cross-border trade.

He added that the Ministry of Trade has already developed a master plan for construction of a border market and facilities for storage, cooling, scanners, processing plants and offices.

“We are in the process of upgrading all the border export zones and Lwakhakha is one of those on top of the priority list for a border market and other improved facilities that facilitate trade at Busia, Elegu, Katuna, Mutukula, Malaba and Lwakhakha to support exportation of value added goods at the border; we are only waiting for the Ministry of Finance to release the funds,” he said.