Kenya’s dairy imports from Uganda hit remarkable record

Kenya has witnessed a remarkable surge in dairy imports from Uganda, with the value reaching an impressive $210 million in the year leading to June 2023.

This surge, amounting to nearly triple the previous figures, is attributed to heightened production in Uganda and an increased demand from Kenyan processors.

The dairy products involved in this substantial trade include butter, cheese, ghee, ultra-heat-treated (UHT) milk, yoghurt, and milk powder.

Data released by the Uganda Dairy Development Authority (DDA), the regulator of the dairy sub-sector, indicates that Uganda exported dairy products worth Ush810.56 billion (equivalent to Ksh29.2 billion or $210.83 million) to Kenya during this period.

This accounts for an astounding 83 per cent of Uganda’s total dairy exports, solidifying Kenya’s position as the dominant dairy market for its East African neighbour.

The $210 million figure reflects a remarkable growth of 187.6 per cent from the previous period, during which Uganda exported Ush281.83 billion (Ksh10.15 billion) worth of dairy products to Kenya. Notably, Kenya remains Uganda’s largest trading partner.

Uganda’s overall dairy exports experienced a significant uptick of 158 per cent, reaching $264.5 million (Ksh37.86 billion) during the same period. This surge is attributed to Uganda’s impressive 37 per cent increase in milk production, reaching 3.85 billion litres, up from 2.81 billion litres in the preceding year.

Despite Kenya’s restrictions on certain dairy imports from Uganda, the substantial increase in dairy imports highlights the resilience of cross-border trade. Uganda has expressed concerns about insufficient permits for milk imports into Kenya, with ongoing talks at the highest policy levels to address this issue, according to the DDA’s latest annual report.

This surge in local production and imports from Uganda has played a crucial role in stabilizing milk prices in Kenya, offering consumers relief.

According to the Kenya National Bureau of Statistics, a 500-milliliter packet of fresh cow milk was retailing at Ksh57.31 last month, representing a slight decline of 0.5 per cent compared to the average price of Ksh57.61 in February of the previous year. A spot check at popular retailers such as Naivas and Carrefour reveals retail prices ranging from Ksh54 to Ksh68 and Ksh47 to Ksh64, respectively, for a 500ml packet of fresh milk.