Business
Prime Minister Nabbanja Adjourns Kampala Traders Meeting Amid Rising Tensions Over Detentions
Prime Minister Robinah Nabbanja was forced to adjourn a high-profile meeting with Kampala traders on Monday after tensions escalated over the continued detention of more than 15 traders arrested during the ongoing strike. The adjournment came as traders refused to proceed with discussions until their colleagues were released from custody.
According to a police report presented at the meeting, the arrested traders—detained on the first day of the strike—remained in custody. The revelation triggered outrage among attendees, with traders chanting and demanding immediate action from the government. The situation quickly deteriorated into chaos, forcing the Prime Minister to halt the talks indefinitely.
“We’re going through tough times, yet many refuse to acknowledge it. I hold the trade leaders accountable. Instead of uniting traders, they’re working to divide and break them apart,” said Hajji Issa Sekitto, Acting Chairperson of the Kampala City Traders Association (KACITA).
The strike, which has paralysed parts of Kampala’s Central Business District (CBD), was launched in protest of what traders describe as unfair taxation and the government’s failure to regulate foreign nationals, particularly Chinese and Indian business operators. Traders claim that some foreign manufacturers are illegally operating retail shops, in violation of the Trade Licensing Act, undermining local businesses.
On Sunday, thousands of traders closed their shops in the CBD, causing business activities to come to a near standstill. The protests are tied to revised import duty regulations implemented on July 1, which changed taxation for textiles and garments from a value-based system to a weight-based system:
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Fabric imports: now taxed at $2 per kilogram or 35% of value, down from $3/kg.
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Garment imports: taxed at $2.5 per kilogram or 35% of value, down from $3.5/kg.
Despite the apparent reductions, traders argue that weight-based taxation disproportionately affects small businesses, especially in a sluggish economy with thin profit margins. Sekitto emphasized that the closures were a direct response to the tax regime, which continues to threaten the viability of small and medium-sized enterprises (SMEs). “We’ve raised the matter with Parliament, Cabinet, and even the President, but there’s been no meaningful action,” Sekitto added.
Security forces were deployed across downtown Kampala early Monday morning to maintain order amid the strike. Authorities remain on high alert as the protest gains momentum, with traders vowing to continue demonstrations until their demands are addressed.
The standoff highlights growing frustrations among Kampala traders over taxation policies and regulatory enforcement, underscoring broader challenges faced by small businesses operating in Uganda’s urban economy. With negotiations stalled and tensions escalating, government officials face mounting pressure to engage meaningfully with trade leaders to restore order and stabilize commerce in the capital.
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