Reason Why It's Cheaper To Import Food Items From Uganda- Justus Kioko, Financial Analyst

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[@juniourx2203]

Great content ....it's good we understand economics

[@davidbasset7557]

Bring back david ndii And please upload the situation room as a podcast on apple and spotify!!

[@marylinechepkirui5020]

Well, there is a lot to it. UG weather is fairly good with fertile soils that uses less intensive inputs, so to this end cost of production will low and again factor in productivity.

[@anickashasha]

I am of the opinion the financial analyst is taking the panelists in circles just to confuse things. He doesn't seem to be an expert on the subject. He hasn't been able to respond satisfactorily to all the questions.

[@kabuthakabutha9472]

Please spice FM bring back this guy again.

[@kahugumuiruri9057]

Eric 30 by 9,000 is 270K. Uganda has better lands and produce more than we do.

[@snownfire]

This is true, in western Kenya, it not profitable to rear chicken for example since there are cheaper eggs from Uganda. It is not even profitable to bring in eggs from Nakuru. Western residents have given up on poultry farming. Prices of some foods are also relatively cheaper there

[@duncanouma7354]

My 2 cents; 1. Ugandan government taxes output Kenyan government taxes inputs (feeds, fertiliser, pesticides) making kenyan products expensive 2. Western Kenya all the way into Uganda has natural phosphates in the soil (no fertiliser needed) we were made to use fertilisers in Kenya increasing our cost of production and damaging our soils hence dependent on fertilisers. 3. Ugandan arable land is bigger than kenyan ( Uganda doesn't have a "ka North Eastern" 4. Demand and supply; eating habits on both sides of the border affect demand and supply. Ugandans eat variety of starch (pumkins, cassava, sweet potatoes, bananas etc) while our staple here is purely maize Kenyan currency has always been strong, the Financial expert is contradicting himself, price of clothing is affected more by the taxation more than forex. UGX being weaker would mean the imports are more expensive in Uganda (if you eliminate taxation)

[@daviddavis7959]

The analyst is right. A stronger Kenya shilling makes goods cheaper to buy in neighbouring countries and neigbouring countries make more money from a stronger shilling when they sell their products to Kenya. For instance if the exchange rate is one Kenya shilling equals to 30 UG, i as a Kenyan can buy more eggs cheaper in Uganda than if i were to buy eggs produced in Kenya.

[@babtt1393]

Gwr the right guy to answer those questions, he is not able to. Cost of inputs are the primary cause of difference in prices. Chinese goods are cheaper because it's cheaper to provide there than in the USA. One is the availability of cheap labour.

[@davidbasset7557]

that doesn’t explain the kenyans buying clothes from kampala after it has already been transported through kenyan ports and roads The issue is a combination of currency, policy and cost of inputs

[@edwardonyaoking8173]

Taxes and regulations are high in Kenyan and also Kenyan government wants citizenry remain poor until the mind mentally changes that's when kenya will change it's more spiritually than physically

[@apolokaggwa7619]

Besides the "strength" of the currency in both countries, geography and ownership of the means of production matter a great deal as well, Justus, don't they? I think that instead of importing 90% of the food you eat, Kenya can produce enough food for your increasing population despite having just 20% arable land, the rest being arid and desert. The question is who owns most of that arable land? It has been a thorny issue since the colonial era. How can the status quo change if most of your arable land is not in the hands of the natives? Of course, Uganda will always have an advantage over Kenya in food production. We import just 10% or less of the food we eat, the rest being produced privately at home throughout the year. There aren't many countries around the world that can do that. 100% of Uganda is arable land, with plenty of rainfall throughout the year and most importantly all of it is private property. We can choose to increase agricultural production at will, each landowner according to their ability since they own the land! The surge in coffee production throughout the country in the last 25 to 30 years is a good example.

[@iwas2951]

It's also supply and demand. Ugandans won't necessarily go hungry if they import less, so importers need to incentivize Ugandans to buy their agricultural products, by lowering prices therefore being okay with lower profits.

[@bensonndhere6207]

the currency of matter

[@babtt1393]

Ask him why finished goods from China are cheaper compared to Kenyans yet China has high GDP than Kenya and Yuan is more attractive than Shillings

[@leviceochieng2265]

ECONOMIES OF SCALE.

[@thekikombe]

Lakini Leo mulizima Huyu guest sana na hii maneno ya currency na cost of goods!

[@Diasporamedia23]

Get your Maths right. 270,000 and not 27,000