Kenya crisis costs Burundi millions in lost tax

By Patrick Nduwimana

BUJUMBURA (Reuters) - Burundi is losing up to $3 million a month in taxes due to the high cost of importing goods through Kenya where post-election violence has choked the region's supply route, a customs official said on Thursday.

The crisis in Kenya over its disputed December 27 presidential polls has disrupted the transport of fuel, raw and manufactured goods to neighboring countries that rely on its Mombasa port.

"We realize volumes of imports have reduced. We used to receive more than 10 trucks from Kenya every day, but now we just receive six trucks," said Euzechiel Nibigira, general manager of Burundi's custom office.

"We estimate losses of $2 to 3 million every month due to that situation," he told reporters.

The East African Community economic bloc said earlier this month the post-election bloodletting in Kenya, the region's largest economy, had damaged trade and revenue flows to neighboring states and threatened the area's industrial competitiveness.

Kenya is the gateway to several other eastern and central African nations that also include Rwanda, Uganda, parts of south Sudan and eastern Democratic Republic of Congo.

Nibigira said Burundi customs were now receiving most of their goods from Uganda and Dubai.

"We have asked traders to seek another market which could ease their imports before the situation in Kenya improves."

Traders at Bujumbura's main market said imports from Kenya had become too expensive.

"It's true that Kenyan factories are again operational, but the problem is that the prices rose seriously," said Phocus Ngayabihema, head of the traders' association at the market.

"This is the reason why we find very few products from Kenya on the market."

Burundi's oil importers said fuel supplies had returned to normal since the Kenyan authorities reinforced security for convoys of trucks coming from Mombasa.

(Editing by Jack Kimball and Mary Gabriel)