« Back to Intelligence Feed Kadaga wants ban on Kenyans traders buying food from farms

Kadaga wants ban on Kenyans traders buying food from farms

ABI Analysis · Uganda agriculture Sentiment: -0.65 (negative) · 18/03/2026
Uganda's Parliament is moving toward restricting cross-border agricultural purchasing, with Speaker Anita Among signaling support for measures that would limit Kenyan traders' direct access to Ugandan farm produce. This protectionist initiative reflects growing tensions within East Africa's agricultural supply chains and signals a critical shift in how regional trade will function moving forward. The proposed restrictions emerge from farmer complaints that Kenyan bulk buyers exploit Uganda's lower production costs and weaker market coordination to acquire commodities at farm-gate prices significantly below domestic wholesale rates. Uganda's agricultural sector, which contributes approximately 24% of GDP and employs over 70% of the rural workforce, has long struggled with farmer income volatility and unfavorable buyer-seller dynamics. Kenyan traders, operating with superior logistics networks and established distribution channels, have become preferred partners for volume purchases, effectively bypassing local aggregators and creating direct competition for Uganda's domestic value chains. This development must be understood within the broader context of East African integration challenges. While the East African Community theoretically guarantees free movement of goods and services, enforcement remains inconsistent. Uganda has historically positioned itself as a regional agricultural hub, exporting maize, beans, coffee, and horticultural products across East Africa. However, the asymmetrical development of supply chain

Continue reading this analysis

Become an ABI Supporter to unlock all articles, reports and investment opportunities.

Subscribe — €10/year

Already a member? Log in

Gateway Intelligence
European logistics and agritech investors should prioritize acquiring or establishing local aggregation platforms in Uganda's major production zones before restrictive regulations fully crystallize—potential acquisition targets include established cooperative unions and private collection networks. Simultaneously, investors should model revenue exposure to Kenya-Uganda trade flows; if restrictions materialize, margins compress for traders but expand significantly for value-addition services (processing, storage, quality certification). Recommend immediate stakeholder engagement with parliamentary agriculture committees and EAC trade desks to understand enforcement timelines and potential exemptions for foreign direct investment in infrastructure versus pure trading operations.

#

Subscribe to read the full Gateway Intelligence insight

Unlock Full Access — €10/year

Sources: Daily Monitor Uganda

More from Uganda

🇺🇬 Three more bodies recovered in Mayuge as Lake Victoria death toll rises to six

agriculture·18/03/2026

🇺🇬 Workers’ strike paralyses Igara factory operations

manufacturing·18/03/2026

🇺🇬 Masindi Hospital gets Shs130m project to boost maternal, child health

health·18/03/2026

More agriculture Intelligence

🇺🇬 Kadaga wants ban on Kenyan traders buying food from farms

Uganda·18/03/2026

🇳🇬 NSIA signs deal to develop $500m dairy project in Nigeria

Nigeria·18/03/2026

🇳🇬 NSIA signs MoU with UK firm to develop dairy livestock platform in Nigeria

Nigeria·18/03/2026