Kenya re-opens its doors for return of Uganda’s Lato milk
NAIROBI - Kenya has allowed Uganda’s Lato milk to invest in local dairy factories as the State ramps up competition in the dairy sector which government officials have constantly complained is dominated by one player.
Trade and Investments Cabinet Secretary Moses Kuria held bilateral talks with Uganda’s Treasury Permanent Secretary Ramadan Ggoobi where the two countries promised to work together to boost their respective dairy sectors.
The ministry said Lato, a leading milk processor in Uganda which had significantly penetrated the Kenyan market, has signed a deal with the Stateowned financier Kenya Development Corporation to invest jointly in dairy ventures.
“The meeting focused on mutual economic and investment objectives by the two countries as a follow up to the various bilateral meetings between to facilitate regional co-investment opportunities in strategic sectors,” said Kuria.
He said Lato will invest in Kenyan milk factories that are currently struggling in a bid to revive them in what will see the Ugandan firm take the fight for control of the lucrative milk sector to the doorstep of some well-known local dairy brands.
Brookside Dairy Limited is Kenya’s largest milk company and controls a market share of 40 percent, according to the Competition Authority of Kenya.
New Kenya Cooperative Creameries manages a 25 percent share while Sameer Agriculture and Livestock controls
14 percent of the market.
Others include Githunguri Dairy Cooperative (12 percent), Pascha-Uplands Premium Dairies and Food (1.7 percent), Musty Distribution (three percent), Doodla Dairy Kenya (0.9 percent) while others have a 3.4 percent market share.
The Trade Ministry said Kenya and Uganda agreed to joint planning of raw materials between the two countries to ensure all-around supply in a bid to facilitate competitive production.
Additionally, Kenya and Uganda agreed on the exemption of importation fees and levies on strategic commodities in Kenya to boost food security and integration of the commodities exchange between the two duos. – DAILY NATION,