Cement industry wants regional market laws enforced
Apr 07, 2011
UNRESOLVED provisions of the East African Community (EAC) common market protocol are rendering it difficult for the Ugandan cement industry to compete with sister industries of member states.
By Moses Nampala
UNRESOLVED provisions of the East African Community (EAC) common market protocol are rendering it difficult for the Ugandan cement industry to compete with sister industries of member states.
The local cement industry petitioned law makers in the EAC to ensure that the common market protocol is implemented so that member states operate under similar laws to ensure fair competition.
Tororo Cement managing director B.M. Gagran presented the petition to the executive director of the Uganda Manufacturing Association, Kigozi Ssebbagala, in a meeting at Tororo Cement industry recently.
He said Kenyan internal tax policy compels the cement industry to remit sh900 as loyalties from each tonne of stones used to make cement, while a similar policy in Uganda compels the industry to remit sh3,000 per tonne.
“The loyalties we remit to the Government are more than three times our counterparts pay,†Gagran explained.
“This explains why cement imported from Kenya is cheaper than that produced locally.â€
The current market price of cement Imported from Kenya (Bamburi brand) costs sh19,500, while the locally produced cement from Tororo is at sh24,000.
UNRESOLVED provisions of the East African Community (EAC) common market protocol are rendering it difficult for the Ugandan cement industry to compete with sister industries of member states.
The local cement industry petitioned law makers in the EAC to ensure that the common market protocol is implemented so that member states operate under similar laws to ensure fair competition.
Tororo Cement managing director B.M. Gagran presented the petition to the executive director of the Uganda Manufacturing Association, Kigozi Ssebbagala, in a meeting at Tororo Cement industry recently.
He said Kenyan internal tax policy compels the cement industry to remit sh900 as loyalties from each tonne of stones used to make cement, while a similar policy in Uganda compels the industry to remit sh3,000 per tonne.
“The loyalties we remit to the Government are more than three times our counterparts pay,†Gagran explained.
“This explains why cement imported from Kenya is cheaper than that produced locally.â€
The current market price of cement Imported from Kenya (Bamburi brand) costs sh19,500, while the locally produced cement from Tororo is at sh24,000.