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Kenya taxes Egyptian imports raising specter of African trade war

Kenya has decided to impose taxes on the imports coming from Egypt, following its unilateral retreat from the COMESA agreement.

Delegates of the 19 countries members of the Common Market for Eastern and Southern Africa (COMESA) attend the summit on February 26, 2014, in Kinshasa. The delegations will work on the theme : "Strengthen the inter-Comesa trade through the development of small and medium enterprises". AFP PHOTO  Junior D. Kannah        (Photo credit should read Junior D. Kannah/AFP via Getty Images)
Delegates of the 19 countries that are members of the Common Market for Eastern and Southern Africa (COMESA) attend a summit, Kinshasa, Democratic Republic of the Congo, Feb. 26, 2014. — Junior D. Kannah/AFP via Getty Images

Egyptian exporters told Al-Monitor that the Kenyan authorities decided to impose customs duties on their merchandise, causing a stir regarding the fate of their remaining shipments in the Kenyan port of Mombasa.

Egyptian companies that export to Kenya rely on the privileges of the Common Market for Eastern and Southern Africa (COMESA) agreement and mutual customs’ exemptions.

On Sept. 9, the Kenya Revenue Authority informed the Egyptian exporting companies that it will impose a 25% tax on products, because the Kenyan government is considering the unilateral withdrawal from COMESA.

Egypt and Kenya are members of COMESA, which is a free trade zone established in 1994 and includes 21 member states. It aims at promoting trade exchange and liberating the flow of merchandise between the countries of eastern and southern Africa.

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