Anti-Counterfeit Agency impounds sugar smuggled from Uganda

The Anti-Counterfeit Agency (ACA) has raised concerns about the continuing smuggling of cheap sugar across the Kenya-Uganda border at Suam.

The agency has called the trend the greatest threat to the country’s sugar industry, which is grappling with a myriad of market challenges.

At the Kenya Revenue Authority (KRA) customs office in Suam on Friday, the agency's officials inspected a lorry that was intercepted by police on the Endebess-Kitale road ferrying 200 bags of sugar worth over Sh1 million.

Yussuf Ahmed, the ACA regional manager in Eldoret, said they also found 250 empty sacks bearing a Ugandan company’s logo in the lorry, indicating that the foreign sugar was brought into the country and repackaged into bags of local brands to conceal it from authorities.

“The impounded sugar entered the country illegally and was repackaged into bags with Kenyan brands as a way of concealment.

“This is a serious economic crime that is a big blow to our local sugar processing companies that are already grappling with a myriad of market challenges,” said Mr Ahmed.

The impounded empty sacks had the addresses of Lugazi Sugar Company, GM Sugar, Kamuli, and MSIL-Mayuge Sugar Company located in Jinja, Uganda, while the sugar was packaged in Nzoia and Butali Sugar Company bags.

“Ninety-nine bags of the seized sugar were repackaged in Nzoia Sugar Company bags and 101 in Butali Sugar Company packages.

“This is economic sabotage to the Kenyan companies whose brands are used illegally for the benefit of a few unscrupulous businessmen,” explained Mr Ahmed.

He said they had initiated a multi-agency approach involving the KRA, the Kenya Sugar Board (KSB), the Agriculture, Fisheries and Food Authority and the police to establish what facilitates the entry of the illegal consignments and counter future smuggling attempts.

Trans Nzoia Administration Police Commandant Nicholas Oyoko said officers manning the border point discovered the racket when they intercepted the lorry, which had entered the country through an unofficial route on the porous border.

SUSPICIOUS BAGS

“Police became suspicious when they noticed empty bags of Lugazi Sugar in the lorry yet the 200 bags were packaged in Nzoia and Butali Sugar bags, upon which they commenced investigations,” said Mr Oyoko.

An investigations team comprising the Kenyan police, KRA officers and Uganda Revenue Authority officials ascertained that the goods were not taxed as required by the terms of the East African trade protocol.

Two suspects, the driver and his loader, were arrested and are helping police with investigations.

Meanwhile, Kenya National Chamber of Commerce and Industry (KNCCI) officials in Trans Nzoia County want stiffer measures adopted to curb the smuggling of goods from Uganda through the border point.

KNCCI chairman Martin Waliaula said the county government and the national government must put up the right infrastructure at the border point to seal loopholes leading to the loss of millions of shillings in revenue due to smuggling.

He, at the same time, accused some business people of taking advantage of the free trade area to engage in illegal business activities at the expense of unsuspecting consumers and the country’s economy.

“We want all traders to take advantage of the free trade area and follow due process when importing sugar and other goods from the neighbouring country instead of soiling the name of all traders,” said Mr Waliaula.