The Ugandan government, through the Uganda Revenue Authority (URA), is heightening surveillance and intelligence operations along eastern border points to counter the smuggling of cement from Kenya into Uganda. The move follows revelations of the illegal influx of inexpensive cement into the country through porous border points, particularly at Lwakhakha, Busia, and Malaba borders.
URA spokesperson Mr Ibrahim Bbosa stated that the Authority is taking decisive action against the smuggling of brands such as Simba and Bamburi, citing a notable increase in such activities. In the past two months, URA enforcement teams have intercepted 3,286 bags of smuggled cement, equivalent to 164.3 metric tonnes. The illicit trade is conducted by both large and small-scale traders, employing smaller vehicles, bicycles, and motorcycles to transport cement through unregulated border points.
Mr Bbosa revealed that the price disparity between Ugandan and Kenyan cement is a key driver of the smuggling, as cement prices in Kenya are significantly lower. Despite the Shs4,200 tax per bag for traders with a certificate of origin, Kenyan cement remains more affordable. To counter these activities, URA is increasing information sharing and coordination with government agencies at border points, including security and immigration departments.
While customs officials have reported high clearances of cement from Kenya at several border points, the government is losing revenue, as URA is supposed to collect Shs2,000 per 50kg bag of imported cement. The Uganda-Kenya border, stretching over 800 kilometers, poses a challenge for effective monitoring, allowing smugglers to exploit porous and informal crossing points.
Businesses in border towns, such as Lwakhakha and Malaba, have voiced concerns about losing customers to the direct supply of smuggled cement to construction sites. Hardware retailers report a significant drop in sales, prompting calls for government intervention. Manufacturers, including Tororo Cement CEO Mr Morgan Gagran, emphasize the economic impact of smuggling on the local market and product quality.
