By Spy Uganda Investigative Team
Malaba/Busia Borders: Any economist will tell you that smuggling has significant implications for a country’s economy because it destabilizes local industries by creating unfair competition whereby legitimate businesses suffer as smuggled goods flood the market, often at lower prices. This is the current situation legitimate producers and traders of salt in Uganda are facing as a result of tones and tones of Kenyan Kay Salt “Premium Brand” and Sun Salt continue to illegally enter the Ugandan market via porous borders.
Now, to bring you up to speed, earlier this week our credible sources at the border intimated to us that the above-mentioned Kenyan salt brand with the ‘FOR SALE IN KENYA ONLY’ inscription, was entering Uganda in excessive numbers even when they are not allowed to be sold in Uganda.
It’s worth noting that this is not the first time such has happened, in 2020, TheSpy Uganda investigative crew camped around Malaba border and indeed witnessed this salt entering Uganda. Although URA curtailed the vice and business came back to normalcy, seems the vice has resurfaced between June and July 2024.
Meanwhile, the above smuggling has been further exposed by a complaint letter seen by our investigator, inked by Okapi Trading Ltd to the URA.
In the letter dated 23rd July 2024, the company asserts that the said salt is smuggled into Uganda through illegal routes which violates both National and East African regulations (SQMT 2013).
”We, Okapi Trading Limited a reputable salt distributor with over 15 years of experience, wish to express our sincere gratitude to the Uganda Revenue Authority for their continued support in streamlining and digitalizing trade procedures. As a responsible corporate company in Uganda and responsible citizens of East Africa, we are committed to adhering to the highest standards of quality and compliance, adhering to both National and East African regulations (SQMT 2013) in every stage of our salt distribution process,” Okapi writes to URA.
Okapi in the same letter informed URA that the smuggling of illegal salt is through unofficial channels, such as Busia, Bukwo, Sofia, Marachi and other porous borders where goods are often carried by individuals on bicycles, bodas, small canters and even trucks without undergoing proper inspections, taxation, or quality control measures,yet URA staff are well aware of such points. “Some one can’t bring a whole truck via a porous border and reach in Iganga without a URA staff detecting it, they seem to be playing games,” a trader said at Busia border.
”This practice not only poses significant health risks to consumers but also results in substantial revenue losses and undermines the integrity of our trade corridor. We kindly bring this matter to your attention as both a public health concern and a trade issue of utmost importance. As you are aware SUNSALT, SAFI SALT & KAY SALT PREMIUM is a Kenya home inbound not meant for export,” inked Okapi.
The company further states, ”Despite our adherence to all legal requirements to distribute salt into Uganda, our efforts are made useless due to infiltration of unaccustomed salt creating illicit trade and unfair competition for companies like us who are fully compliant and pay tax regularly.”
When our team reached out to the Assistant Commissioner in charge of Enforcement and Boarder Control. Mr. Godson Mwesigye neither explicitly accepted nor refuted the claim that Kay Salt is illegally entering Uganda. Watch the video clip below;
President Museveni is slated to visit the area on Tuesday next week and traders were heard planning to express their dissatisfaction on the same. Watch the space.Â
