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At exactly 5pm on April 19, 2024, a selection of 61 traders, part of more than 200 that had camped for seven hours at State House Entebbe, were KAMPALA. At exactly 5pm on April 19, 2024, a selection of 61 traders, part of more than 200 that had camped for seven hours at State House Entebbe, were ushered into a closed-door meeting with President Museveni and a few other government officials.

The tense meeting, which lasted until 11 pm, followed a one-week sit-down strike by traders from various associations over unresolved multiple grievances. Key on their agenda was unfair levying of the Value Added Tax (VAT), the forcible enforcement of the Electronic Fiscal Receipting and Invoicing System (EFRIS) by the Uganda Revenue Authority (URA), the $3 (Shs10,388.2) and $3.5 (12,119.5) per kilo Import Duty on fabrics and garments, the non-refunding of the six percent Withholding Tax, and Chinese operating retail shops in downtown Kampala.

The team included traders, leaders and some members of the Kampala City Traders Association (KACITA), Federation of Uganda Traders Associations (FUTA), United Arcades Traders and Entrepreneurs Association (UATEA), and Uganda Dealers in Used Clothes and Shoes. The traders informed President Museveni that charging them VAT was unfair and insisted it should be charged on the factories. Sources who attended the meeting said the President, who ordered an immediate suspension of the implementation of EFRIS, agreed with the traders on VAT and promised to look into the issues and meet them again in June.

The subsequent meeting held on May 7, 2024, fell short of the traders’ expectations, forcing them to launch another sit-down strike on July 30. But this time, Prime Minister Robinah Nabbanja calmed them in a record two days. A year later, the traders have, in a space of less than three months, launched two strikes over the same issue. The August 28 to 29 strike was contained by Ms Nabbanja. But yesterday, the premier, despite touring downtown Kampala, that was ravaged by torrential rain and floods last Friday, was tight-lipped on the issue of the trader’s strike.

Unending issues

As was in previous strikes, the traders who had circulated a notice about a month ago, announcing the strike, fronted the per kilo tax policy on garments; foreigners, especially Chinese operating retail businesses; high taxes; high rent; and the coercive enforcement of EFRIS, and added the issue of landlords increasing rent fees by 10 percent annually.

Taxes

The traders accused the government of running a different tax policy from that of other East African countries, despite subscribing to the same common market. The traders demand the immediate removal of the $2.55 (Shs8,829.94) per kilo tax on fabrics and garments and replace the old per invoice charge. The traders argued that per kilo tax violates the General Agreement on Tariffs and Trade (GATT) valuation. GATT is used under the World Trade Organisation (WTO), where Uganda is a member. This per kilo tax policy was rejected outright by the traders when the government hiked the import duty for textiles from 25 percent to 35 percent or $5 (Shs17,313.6).

Before the URA kicked off its implementation on July 1, 2020, the former KACITA chairperson Thaddeus Musoke Nagenda, on February 25, 2020, petitioned Finance minister Matia Kasaija, asking the government to repeal the National Textiles Taxation Policy, which gives URA powers to levy $5 per kilo on import duty as opposed to the known per invoice charge, a specific tax mechanism used in calculation of VAT, goods and Service Tax and Withholding Tax.

The government instead pushed its implementation date to December 31 and later started implementing it, which led to the strikes. Mr Kasaija later wrote to URA Commissioner General James Musinguzi asking him to halt the tax policy’s implementation following the public outcry. The policy was later reduced to $3.5 per kilo and implemented, leading to more strikes untill last year when it was reduced to the current $2.5.

Another contention is the way URA levies the 18 percent VAT from the wholesaler to the final user, yet it would be charged once at the factory. Dr Musoke argues that all the people in the transaction chain, including the importer/manufacturer, wholesaler, retailer, and final consumers, pay VAT, although URA says it is passed on to the final consumer. ‘By principle, his VAT payable is Output VAT minus VAT input from the importer/manufacturer. Which, in simple calculation, happens to be similar to charging 18 percent VAT on the profit,’ he said.

URA, Mr Nagenda argues, would collect Shs23.9m VAT out of the products worth Shs100m, from the four individuals. Another tax issue the traders raised is the six percent Withholding Tax, which Agents claimed URA takes and does not pay them back at the end of the year as required by law. Speaking to traders in August, Ms Nabbanja promised to present their issues before the Cabinet since all their arguments require change in the taxation laws. But the traders told reporters yesterday that nothing has since been done.

Trade chain violation

The influx of so-called Chinese investors operating shops downtown is another issue traders want addressed immediately. They say the Chinese have ended up in open competition with the local players through opening both distribution, wholesale, and retail shops besides hawking in all upcountry areas.

Experts weigh in

Mr Richard Ssempala, an economist and a lecturer at Makerere University School of Economics, linked the recurring traders’ strikes to the poor relationship between the traders and the tax body. Relatedly, Dr Fred Muhumuza, a policy analyst, also said the government should intensify dialogue with traders and tax education to resolve disputes before they escalate into strikes.

Transport between Iganga and Luuka districts has been paralyzed after the Namadope Bridge collapsed following days of torrential rain that triggered massive flooding across the region.

The bridge, which crosses the Namadope swamp, was washed away after the swamp burst its banks, cutting off one of the main routes linking the two districts.

The alternative route through Butimbwa and Buyubu villages via Namakakale swamp has also been submerged, leaving both motorists and pedestrians stranded.

Heavy rainfall overwhelmed the area’s drainage systems, eroding road surfaces, sweeping away culverts, and leaving behind scenes of destruction, trees tangled with debris and motorcycles abandoned by riders seeking safety.

Residents expressed frustration over the situation.

‘This was our only alternative route. Now transport costs are very high, and we wonder what our government is doing,’ said Mr Rasul Bakaluba, a traveler from Iganga.

From Waibuga in Luuka, Mr Hamidu Balikowa lamented that the flooding has left the district feeling isolated.

‘If a patient needs a referral, they might die on the way because all routes are flooded,’ he said.

Meanwhile, some youths have resorted to charging stranded travelers between Shs1,000 and Shs2,000 to help them cross the flooded sections.

Mr Simon Wakaze, the Luuka District LCV Chairperson, confirmed that rehabilitation works on the collapsed Namadope Bridge have already begun.

‘Our immediate priority is to restore the main highway that connects Luuka to neighboring districts and supports the bulk of trade and transport in the area,’ he said.

He noted that Arab Contractors are already on-site working to reconstruct the damaged bridge and stabilize the swampy sections to make the road passable again.

Mr Wakaze acknowledged the severe impact of the flooding on farmers, traders, and patients seeking medical care, adding that while the district is committed to restoring all affected routes, progress will depend on additional funding from the central government and local development programs.

The Industrial Court in Kampala has upheld the summary dismissal of the then Sanyu FM Chief Operations Officer (COO), Betsy Mugamba, ruling that her termination was lawful after she participated in what the court described as an ‘unlawful strike’ during the COVID-19 lockdown.

In a detailed judgment delivered by Justice Anthony Wabwire Musana, sitting with other panelists, Amos Lapenga, Susan Nabirye and Dawn Oling Kerjew, the court ruled that Mugamba’s dismissal complied with both procedural and substantive fairness under the Employment Act.

The contract of Ms Mugamba, who had worked with the radio station for 27 years was terminated on September 25, 2020, after management accused her of inciting staff to strike, disrupting operations, damaging the Sanyu FM brand and neglecting her duties.

Justice Musana observed that the dispute stemmed from the station’s decision to implement salary cuts in May 2020 amid declining revenues. Ms Mugamba, then COO, opposed the salary reduction and later signed a letter with 24 staff members rejecting the cuts and declaring an immediate withdrawal of labour.

‘The evidence does not show that there was a collective agreement in place or that the Labour Officer had referred the matter to court. There was neither notice to the respondent nor a report made to the labour officer,’ the court noted.

Citing Sections 29 and 35 of the Labour Disputes (Arbitration and Settlement) Act, the court held that any industrial action by essential service providers-like radio broadcasters during the COVID-19 lockdown-required advance notice and approval from a Labour Officer.

‘The strike would not fall under the protected strike category for which dismissal or other disciplinary sanctions would be prohibited…The 5th June 2020 strike was unlawful within the meaning of the law,’ Justice Musana ruled.

Managerial Responsibility

The court found that Mugamba’s senior managerial role aggravated her culpability. As COO, she was expected to uphold company policies and prevent disruption.

‘While she testified that she acted in solidarity with her colleagues, the unintended consequence of her endorsement of an unlawful strike constituted a fundamental breach of her employment contract,’ the judge stated.

Quoting comparative case law, the court emphasized that managers and senior executives are held to a higher standard of trust and loyalty. ‘As Chief Operations Officer, she was the eyes and ears of management. Her participation in the strike undermined the employer’s confidence and destabilized operations.’

Addressing claims that Mugamba was ambushed and denied a fair hearing, the court found otherwise. It noted that she was given a written suspension letter on August 19, 2020, and sufficient notice of her disciplinary hearing scheduled for August 26.

‘The claimant had seven clear days to prepare for the disciplinary hearing. She was represented by counsel and given the opportunity to cross-examine witnesses,’ Justice Musana said.

The court dismissed arguments that the absence of an appeal process rendered the procedure unfair, observing that ‘the Employment Act does not explicitly require an employer to provide for the right of appeal.’

It further upheld the impartiality of the disciplinary process, which was chaired by Advocate Sheila Namahe.

‘Outsourcing the chairpersonship of disciplinary proceedings to an independent advocate ensured fairness and was not antithetical to due process,’ the judgment read.

Having found that Sanyu FM followed lawful procedures and had valid grounds for dismissal, the Industrial Court concluded that Mugamba’s summary dismissal was justified.

‘For the reasons set out above, we find that the Respondent was procedurally and substantively fair,’ Justice Musana ruled, dismissing Mugamba’s claim in its entirety.

Ms Mugamba had filed a labour reference seeking a declaration that her dismissal was unfair, claiming that she was victimised for opposing unilateral salary cuts and that she never participated in any illegal strike.

Through her lawyers, she had sought for Shs 792 million in salary arrears, damages and severance pay.

Her employer, Sanyu FM (2000) Ltd, maintained that Mugamba led an unlawful strike after rejecting a 25% salary reduction that management introduced in response to the pandemic’s financial effects. The company said her conduct amounted to gross misconduct and a fundamental breach of contract.

Many Ugandans face significant financial losses due to counterfeit building materials. Understanding how to identify these fakes is crucial for any construction project. Sarah Nakazzi learnt this the hard way. After purchasing cement to build her home and escape rent burdens, her engineer discovered the cement was fake. Returning to the hardware shop, she found it had vanished, leaving her with a loss of Shs3m and a foundation she had to demolish.

This is not an isolated case. The Uganda National Bureau of Standards (UNBS) and Police recently shut down an illegal paint factory in downtown Kampala and busted a dealer in Luwero selling fake Tororo, Hima, and Fundi cement. These counterfeit products are particularly common in hardware stores upcountry.

How to protect yourself

Engage a professional engineer

Engineer Claude Ziraba from Kampala emphasizes that the first step is to hire a professional engineer. They provide a Bill of Quantities (BOQ), which lists required materials and can advise on where to find genuine products.

‘Some people are insecure when civil engineers recommend products, thinking we exaggerate prices,’ Ziraba says. ‘They then purchase materials themselves, which is where fake suppliers take advantage.’

Buy from authorised dealers

To avoid being duped, always buy from established, authorized dealers and manufacturers with a proven track record. Avoid unregistered vendors, who are common sources of counterfeits.

Verify product specifications and use contracts

Before purchasing, check that product specifications, like the manufacturer’s address, grade, and dimensions, are clearly indicated on the packaging. Ziraba also advises using a supply contract that specifies the required quality standards. The supplier should provide a certificate confirming the materials meet those standards.

Material-specific vigilance

The Uganda National Bureau of Standards (UNBS) plays a critical role in combating the influx of counterfeit building materials. Sylvia Kirabo, a UNBS spokesperson, has issued a stern warning about fraudsters who are deceptively forging official seals, stickers, and packaging to mimic genuine products. This widespread counterfeiting not only dupes consumers but also severely damages legitimate businesses and fair trade.

The most crucial step consumers can take is to always look for the UNBS Q-mark on products like cement, electrical wires, and steel, as this is the primary indicator of a certified and genuine item. The scale of this problem is significant, with a recent UNBS survey revealing that over half of the products on the Ugandan market are fake. This directly contributes to dangerous building collapses, with 68 percent of participants in a related study attributing structural failures primarily to poor-quality materials.

To navigate this risky market, Jimmy Okello of the Uganda National Association of Builders, Suppliers and Engineering Contractors (UNABSEC) advises buyers to adopt several key precautions.

First, always physically inspect materials, carefully checking for quality and scrutinizing labels and packaging for any misspellings or unusual marks. Second, beware of abnormally low prices, as a deal that seems too good to be true often signals substandard or fake goods. Third, for materials like cement, checking expiration dates is critical, as they can lose strength if stored for too long. This vigilance should extend to a detailed, material-specific level.

For bricks and blocks, they should be durable; a simple test for clay bricks is to immerse one in water, if the water turns white, the brick is not strong.

When it comes to steel bars, reputable manufacturers use QR codes or specific markings that can be verified, and a bar that cracks when you attempt to bend it is of poor quality.

For timber, good quality is typically heavy, has low moisture content, and is treated with preservatives to protect against pests; avoid any wood with high moisture and no preservatives.

With cement, always ensure the bag weighs the standard 50kg and check for the manufacturer’s specific security features, like holograms or unique codes. Finally, for roofing tiles or iron sheets, they should interlock easily and have a uniform shape to ensure proper water flow, as warped or uneven tiles can lead to leaks.

In response to this ongoing issue, UNBS is committed to cracking down on unscrupulous dealers whose businesses undermine the country’s development. ‘These people do not pay taxes and are stealing from unsuspecting consumers and legitimate investors,’ says Kirabo. She urges the public to cooperate in the fight against fake products and encourages all manufacturers to seek UNBS certification before selling their goods, a move that will help consumers identify genuine products with ease.

For the first time in a decade, a team that is not City Oilers can be referred to as National Basketball League champions.

Namuwongo Blazers brought to end Oilers’ dominance with a commanding 68-55 victory in Game Six of the finals played Wednesday night at the Lugogo Indoor Stadium.

Stephen Nyeko’s charges went into the fixture with all the momentum, having won three in a row to recover from a 2-0 hole and eventually win the best-of-seven series 4-2.

Led by four former Oilers players, the Blazers closed the series to avoid a Game Seven and lift their first ever league title.

The pressure was on Oilers going into Game Six, and the 10-time champions failed to find answers to the tough questions paused by the Blazers’ defence.

And with the fully-packed Lugogo Arena in full voice backing the Blazers, there was nothing going City Oilers way and they settled for silver.

Tonny Drileba, whose return from injury in Game Three played a huge role in Namuwongo’s comeback, led from the front in the close out game.

Andrew Tendo’s side led 16-15 after a closely contested first quarter but the Blazers edged the second 20-19 to tie the game at 35-35 going into the halftime break.

The Blazers dominated the second half, maintaining a six-point difference until they broke away down the stretch to win by 13.

Three former Oilers captains Jimmy Enabu, James Okello and Ivan Muhwezi all played a huge role in bringing down the house they once called home.

Okello scored 16 points and gathered six rebounds in Game Six while Drileba got 10 points, seven rebounds and three assists.

Enabu, who started the team’s second half run with a connection from downtown, scored 12 points while Peter Obleng registered 11 points.

Guard Joel Lukoji, who averaged 11 points, four rebounds and four assists, was named both regular season and finals MVP.

In the end, it was the know-how the Blazers acquired that helped them cross the finish line. The quartet from City Oilers provided the required experience when push came to shove in the series.

Performances of Anthony Chukwura, Arthur Wanyoto, Obleng and Innocent Ochera also played a huge part in delivering the crown.

Oilers’ troubles started early in the season, with their depleted roster delivering the team’s worst regular season record.

By finishing seventh, the record champions ended up facing second-seeded JT Jaguars, whom they defeated largely because of the quality provided by Chad Bowie and Kurt Wegscheider.

Their semifinal 3-2 series win over a thin Sommet side left more questions than answers.

The two additions have gone on to play a major role in the team’s run to the finals but, with little help coming from the core they found around, it was impossible to overcome a well-balanced Blazers side.

Two-time MVP Titus Lual and Fayed Baale struggled to impress throughout the series as the Blazers caused a shift in power.

National Basketball League

Finals – Game Six result

City Oilers 55-68 Nam Blazers

The humble 100×100 plot has become the canvas upon which the nation’s commercial future is being drawn. From the bustling corridors of Kampala to the growing town centres of Mbarara, Gulu, and Jinja, this piece of land represents a profound opportunity. For the visionary developer, it is not merely a parcel of land; it is a vertical ecosystem, a multi-layered revenue stream, and a legacy in waiting. This in-depth analysis explores a proven, high-yield blueprint for developing a mixed-use commercial mall, a project poised to become a cornerstone of your local community and your financial portfolio.

A synergy of form and function

This proposed development is a four-storey architectural marvel designed to maximise every square foot of the plot while creating a seamless flow between its various functions. The design philosophy is centred on creating a destination that serves the community from dawn until late evening, ensuring consistent footfall and vitality.

A floor-by-floor breakdown

Lower ground floor

One of the commonest mistakes property developers make, especially in urban centres, is ignoring parking space. In a world where the search for parking can deter even the most determined customer, this floor provides a critical competitive edge.

Construction expert Simon Peter Kazibwe says the space is designed to accommodate approximately 25 vehicles. It offers secure, dedicated parking for tenants, their staff, and premium customers.

‘This single feature significantly enhances the property’s attractiveness to high-value tenants such as banks, electronics stores, and restaurants, who prioritise accessibility for their clientele,’ he says.

Ground and first floors

These two levels are the economic engine of the entire structure. Meticulously planned, each floor houses 14 individual retail units, culminating in a total of 28 shops. This critical mass is key to success. It allows for a strategic tenant mix that creates a synergistic commercial environment.

Imagine a ground floor featuring an anchor mini supermarket, a leading telecom outlet, a pharmacy, and a bank branch. The first floor can then host a collection of specialised stores, including fashion boutiques, shoe stores, electronics shops, salons, and a coffee shop. This diversity transforms the mall from a simple building into a “one-stop-shop” destination, drawing customers for multiple errands and encouraging impulse visits.

Second floor

Ascending from the retail buzz, the second floor is dedicated to creating a serene and productive professional environment. This floor is configured as modern, flexible office spaces, suitable for a range of businesses, from law firms and insurance agencies to tech startups and NGO offices. This tenant base provides a steady, daytime population that patronises the ground-floor retail outlets during lunch breaks and after work, creating a virtuous cycle of internal commerce.

Third floor and rooftop terrace

The pinnacle of the building is reserved for experience and leisure. The third floor interior houses premium office space or a conference facility, while the crown jewel is the expansive rooftop terrace. This space is ideally suited for a high-quality restaurant or lounge, offering al fresco dining with panoramic views of the town.

In Uganda’s climate, an open-air restaurant is not just a business; it is a destination. It becomes a social hub in the evenings and on weekends, attracting a crowd that might not visit during standard shopping hours, thereby ensuring the property remains profitable long after the shops have closed.

A cost-benefit analysis

Undertaking a project of this magnitude requires a clear-eyed view of the financial commitment and the potential returns. This includes excavation for the basement, piling, the reinforced concrete frame, slabs, staircases, and the blockwork shell. For a building of this specification, the cost is estimated at between Shs1.5b and Shs1.7b.

This is a significant portion of the budget, covering installation of a robust electrical system, backup generators, water supply, sewage, and ventilation. High-quality flooring, tiling, suspended ceilings, painting, and glazing. Passenger lifts, escalators (or additional staircases), and modern toilet facilities. Professional fees for architects, engineers, and project managers is estimated at Shs800m.

The financial viability of this project is its most compelling attribute. With 28 shops, office spaces, and a flagship restaurant, the rental income is substantial. Let us model a conservative revenue projection based on a developing town centre, where rental rates are more modest.

28 retail shops: Assuming a conservative average monthly rent of Shs500,000 per shop:

28 x 500,000 = Shs14mper month

Office space (2nd floor and part of 3rd): With lower rental rates per square metre in this location, the office space could generate Shs8m per month.

Rooftop Restaurant: Even in a developing area, a prime, unique space can command a good price: Shs5m per month

Total Projected Gross Monthly Rental Income: Shs14m (shops) + Shs8m (Offices) + Shs5m (Restaurant) = Shs27m a month.

At the weekend, we had a small gathering to discuss road infrastructure in Greater Kampala. The attendees were the typical nerdy types who grow out their hair and beards and find the idea of reading project appraisals and bid evaluation reports fun.

Also in attendance were the doers: the folks who design, finance, and build the roads. I learned many new things but the most insightful one came from a comment by one of the speakers about the relatively rapid pace of the new stadium in Hoima. How come the same country that took almost 20 years to complete the 21-kilometre Kampala Northern Bypass, 15 years to get the Bujagali dam done, and is many years late on several other infrastructure projects, is about to build a 20,000-seater stadium in a little over a year?

Some of the answers are easy to figure out. The most obvious are that a stadium has fewer moving parts than a power dam, financing was ring-fenced early, and this was a greenfield project without the usual fights over land compensation. In addition, the contractor is doing their first job in Uganda and has pressure of wanting to do a good job, fast, to unlock new opportunities, as well as not being corrupted by local contexts and business practices.

But there is more to it, and it has everything to do with incentives. The stadium must be built in time for the Africa Cup of Nations tournament which Uganda is co-hosting with Kenya and Tanzania. That introduces the need to not be compared with peers and found wanting.

The tournament will also be held in 2027. Unless there’s a regional or global force majeure event, it cannot be moved to early 2028, or 2029 simply because one of the co-hosts is still waiting for the paint to dry or the grass to grow. The games allocated to Uganda would simply shift to the other co-hosts, or the tournament itself moved to a country with ready infrastructure.

Thus, faced with an immovable object — the deadline by which the stadium must be ready, inspected, and certified for the tournament — and nudged on by peer pressure, our chronic delays and excuses all melted away, and the different state agencies have come together to ensure that the contractor delivers on time.

This is more than just bragging rights, mind. Infrastructure, say a road, is not a consumable but a growth multiplier. By cutting down travel time for goods and people and connecting markets to consumers, they facilitate economic growth.

The longer it takes a project to be completed, the longer it is for it to pay for itself, and that’s before you factor in the missed velocity in the delayed period. Once a commitment is made to do a project, therefore, it makes economic sense to build it on time and spec.

To rev up Uganda’s economy, we must improve the execution and delivery of public infrastructure projects and can do this by making small nudges to the incentive scheme.

One, since land compensation is a major cause of delays, road projects should be awarded through a competitive process with priority going to districts and municipalities that have secured rights of way or waivers from landowners. Even a simple commitment from landowners to allow construction to proceed while they fight over compensation sums would speed things up.

The second is to create a name-and-shame system where the public can see how long it takes each contractor to do each project. Contractors with undue delays would be blacklisted from winning public contracts for five to 10 years. Contracts should also be redesigned to provide stiff penalties for delays and bonuses for on-time completion.

We are bleeding money to the culture and practice of open-ended building and losing time and pace against regional and continental rivals. We can fix this by building faster and developing it as a competitive muscle.

If you travel by matatu, there’s rarely any hurry because if you miss one there’s another just round the corner. But if you turn up late for a flight you will pay through the nose for that tardiness. For Uganda to really take off, we need to act like airplane, not matatu, passengers.

Hoima stadium can be a turning point, not an outlier.