The second day of the traders’ strike in downtown Kampala, on October 5, was marked by running battles, choking clouds of tear gas, and stones hurled from arcade balconies as security personnel moved in to disperse demonstrators.
What began as minimal resistance in the early morning, quickly escalated into tense confrontations as traders insisted on keeping their shops closed in protest against what they described as unbearable taxes and enforcement measures.
By mid-morning, groups of traders were seen waving Ugandan flags, some with yellow tape over their mouths, while others blew whistles and chanted, ‘High taxes must fall, rent must fall.’
As police advanced, traders inside the arcades pelted them with stones, plastic bottles, and metal objects, forcing officers to take cover at a nearby police post opposite the corner house.
As police advanced, traders inside the arcades pelted them with stones, plastic bottles, and metal objects, forcing officers to take cover at a nearby police post opposite the corner house.
Military Police later joined the operation after regular police officers struggled to access upper floors.
Several traders were dragged out of arcades, some bleeding from blows sustained during the scuffles.
‘We have been making noise for long, but nobody listens. Water is expensive, rent is high, and everything keeps going up. We are closing to show that we are not happy. We have suffered enough,’ Mr William Jemba, a trader, said.
He added: ‘We shall not stop, we are going to continue, the more you press the nose, the more it bleeds. We have just started. We are not going to stop. Landlords are quiet, we are paying for everything in the building.’
The chairperson of the Uganda National Traders Alliance, Mr Godfrey Katongole, said efforts to have the government address traders’ concerns had not yielded results, leading to the renewed strike.
‘Traders think we have betrayed them; everything is high. They have kept quiet for long, and enough is enough. Let traders take over the city. We have had discussions with the government, but nothing has been answered,’ Mr Katongole said.
He added: ‘We did our part as leaders of traders, but nothing has been done. We were acting as middlemen, but the government has been slow in responding to what our traders go through.’
Kampala Metropolitan Police deputy spokesperson Luke Owoyesigire said 13 people were arrested for incitement of violence and assault of police officers.
The traders are protesting what they describe as unfair Value Added Tax regime, the enforcement of the Electronic Fiscal Receipting and Invoicing System (EFRIS), import taxes on fabrics, non-refund of the six percent Withholding Tax, and the continued operation of foreign traders in local retail business.
Mr Eddy Sewaga, a trader, said many buildings have been abandoned due to high rent and extra fees.
‘In Kikubo, Majestic Plaza, City Centre Complex and Kooki Tower, some arcades charge rent in dollars ranging between $570 (about Shs2m) and $1,220 (Shs4.2m), and rent locally ranges from Shs600,000 to Shs6 million depending on the shop level. Tenants also shoulder electricity, water, toilet and garbage fees.
At City Centre Complex, Level One shops costs Shs2m, Level Two go for Shs1.5m and Level Three shops cost between Shs500,000 and Shs600,000. At Majestic Plaza, rent ranges from Shs900,000 to Shs6m,’ Mr Segawa said.
He added: ‘The cost of importing a 20ft container from China to East Africa is between $2,000 (Shs7m) and $2,500 (about Shs9m), while a 40ft container is $3,500 (Shs12m) to $4,000 (Shs14m). All items are charged per kilogramme at $5 (Shs17,000) per kilogramme to URA, plus 14 percent verification fees.’
He further explained that on top of the $5 per kilogramme charge, there is an additional 18 percent for Value Added Tax (VAT), plus trading license fees of Shs360,000 annually and income tax of Shs500,000 per shop-before adding rent and other expenses.
Mr Hebert Wassawa said traders also pay Shs80,000 to Shs100,000 monthly for electricity, Shs30,000 for garbage, Shs500 per jerrycan of water, and Shs300 for toilet use.
What leaders say
Mr Isa Ssekitto, the Kampala City Traders Association (Kacita) spokesperson, expressed disappointment and frustration after a delegation led by Prime Minister Robinah Nabbanja failed to address their pressing issues when it visited the city yesterday to assess the impact of floods on traders.
‘We thank the delegation of the prime minister for bringing hope of compensation to traders who lost their goods in the floods. However, she remained conspicuously silent on the issue that has impoverished hundreds of traders for the past five years – the issue of taxing textiles and garments by weight,’ he said.
Mr Ssekitto further criticised the Kampala Capital City Authority (KCCA) for allegedly failing in its mandate of removing vendors from the city streets.
‘Even [KCCA’s Executive Director Sharifah] Buzeki, who is supposed to remove vendors who put commodities on roads leading to major arcades, also didn’t say anything about the issue of vendors. She had given an ultimatum of seven days when we initially met them, but they are still there, as you can see. For us, we are suffering, but they are doing business. All this arises from the power this government gives them, and the government intentionally dividing people,’ he said.
He said the traders are feeling betrayed by the government’s lack of action. ‘The President is supporting the very people who failed to come down to traders and address pressing issues, which is a betrayal to traders,’ he said.