By: Boy Fidel Leon
In Kampala, the wind has been strong these past few days. Shops shuttered, streets tense, and livelihoods hanging in the balance. Yet beneath the storm, the traders held together, rooted in their collective demand for fairness.
Their strike was not just about taxes and valuations; it was about survival, and about making their voice impossible to ignore.
On Wednesday last week, calm began to return as traders reopened their shops after hours of negotiations with Prime Minister Rt. Hon. Robinah Nabbanja.
She assured them that their concerns would be taken seriously and presented to Cabinet, a pledge that offered just enough reassurance to ease the standoff.
“As government, we shall play our role and address the issues raised by the traders, and they have agreed to open shops immediately,” Nabbanja said, signalling a temporary peace after days of unrest.
The strike, sparked by a tangle of tax frustrations, saw 17 traders arrested for blocking colleagues from working. The meeting at Statistics House, first adjourned over demands for their release, stretched into the evening before both sides settled into a fragile understanding.
The most immediate point of contention is the new weight-based tax on textiles and garments; a system traders insist is unworkable. In a critical concession, Prime Minister Robinah Nabbanja agreed to present the issue before the Cabinet next Monday for an urgent review.
The impasse, however, goes beyond taxes to the ports themselves. Traders detailed crippling delays in container clearance and customs valuations so high they can turn a profitable shipment into a loss. To clear the logistical backlog, a joint committee of traders and revenue officials has been given a one-week deadline to find a solution.
Separately, URA Commissioner General John Musinguzi committed to honouring genuine invoices to ensure a more transparent valuation process, attributing other recent delays to now-resolved system upgrades.
Beyond these immediate crises, the talks exposed deeper anxieties about the fairness of the market itself. Concerns over the enforcement of laws governing foreign nationals in retail, alongside structural inequities in the VAT system, were tabled as long-term challenges.
These complex issues have now been elevated for a high-level ministerial review next Tuesday and potential legislative reform.
KACITA Acting Chairperson Issa Sekitto emphasised that reopening shops was not a concession but a conditional agreement:
“We have agreed to reopen our shops on condition that all the resolutions that have been made are implemented by the government.”
The Kampala City Traders Association (KACITA) is one of the most influential business lobbies in Uganda, representing a wide spectrum of traders across the capital.
Formed in the early 2000s, it emerged as a unifying voice for shop owners, importers, and wholesalers who felt sidelined in policy discussions that directly affected their livelihoods. Over the years, KACITA has grown into a powerful force, capable of mobilising citywide strikes that can grind commercial activity to a halt.
This is not the first time the association has faced off with the government. In recent years, it has led to protests against tax reforms such as the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), as well as high rental charges and customs valuation practices.
Each confrontation has highlighted the delicate balance between the government’s revenue needs and the traders’ demand for a fair, predictable business environment.
KACITA’s influence lies in its numbers. With thousands of members spread across Kampala’s busiest commercial centres, its decisions ripple through the entire economy.
The capital is back to business, but the deeper question remains: will the government follow through?