The ongoing trade order enforcement in many urban centres across the country has led to a surge in rental fees as thousands of evictees look for work space. Majority traders were previously operating on streets, verandas, pavements and other undesignated spaces in non gazetted areas.
In many municipalities and regional cities, some rental houses which had previously been shunned, are now fully occupied.
Acquiring space for business is now a hustle. Some traders who were previously operating in makeshift structures, have painfully secured loans to erect permanent buildings which conform to required urban standards.
Rent fees doubles in Mbarara City, Ibanda Municipality A snap survey in Mbarara City and Ibanda Municipality indicate that rent has almost doubled, leaving some tenants contemplating relocating their businesses to the outskirts of the central business area.
In some of the places in Ibanda Municipality for example, rent in commercial buildings along Main Street ranges between Shs1 million to Shs2 million, up from Shs700,000 to Shs1.5 million while on Jubilee Street, work space which was costing between Shs150,000 and 200,000 monthly six months ago, now costs between Shs200,000 and 350,000.
For accommodation, on average a single room which was costing Shs150,000 per month, has since increased to Shs250,000 while double rooms cost Shs300,000 up from Shs250,000.
According to Mr Godwin Tumuhirwe, a house broker in Ibanda Municipality, landlords are taking advantage of the sudden increase in demand for both business and residential spaces to raise rental fees.
‘People are scrambling for a few formal spaces that were not demolished and landlords are exploiting this desperation to abnormally increase rental fees. All commercial and residential houses are affected and some people are now moving to the outskirts like Nyabuhikye, Igorora and Bisheshe, looking for space,’ he explains.
Mr Steven Kazooba, a landlord in Bufunda II Ward, Ibanda Municipality says ome of their actions were unavoidable because the demolitions were abrupt and affected them economically.
‘I had to refund money to some of my tenants who had paid rent in advance, I have looked for money to renovate some of the structures which were affected and that is how some of us have been forced to increase monthly rental fees,’ he explains.
In Mbarara City, some spaces that were previously used for residential purposes have been converted into commercial spaces.
‘I saw a number of people looking for business space. I hatched an idea to convert my residential house into commercial rentals. I have four rental spaces now and each goes at Shs400,000 per month,’ Mr Bosco Asiimwe, a landlord on Biafra Street in Kakiika, Mbarara City North Division, says.
Mr Julius Besigomwe says he had a restaurant on Ntare Road, but the trade order evictions forced him to relocate his business to Biharwe Township on the outskirts of Mbarara City.
‘The landlord immediately gave us notice when the trade order enforcement had started, saying rent had increased from Shs300,000 to Shs500,000, which looked totally abnormal. I looked at an alternative space around the central business district, but I couldn’t get one and decided to relocate,’ he says.
Mr Julius Mwine, who had a retail shop on Katete Road, now operates during night on Kakoba-Buremba Road after failing to get an affordable space to house his business.
‘I used to pay Shs300,000 as rent when they demolished the premises. I tried to look for an alternative space in Katete Town, but here rent has been increased by almost half, a room that could go for Shs300,000 now costs Shs450,000,’ Mr Mwine says.
Mr Cosmas Deo Tugume, the Ibanda Municipality principal commercial officer, advises traders to form associations where they can influence rent or to shift businesses to other areas that are affordable.
‘The traders should know that as a council, we do not have control over rent, through their associations they can influence rent fees. However, the problem with them is that, they do not have associations that can help them advocate for their rights,’ he says.
The trade order was issued by the Ministry of Local Government on March 10 and it directs all local authorities to restore order in urban areas by relocating traders operating on streets and in undesignated spaces into formal gazzeted areas. In the central district of Wakiso, which is the most populous in the country, some buildings which were previously vacant have started to attract tenants and temporary structures have since been turned into permanent ones.
Mr Vincent Kasozi, Wakiso Traders Association chairperson, says rent has not yet increased, but there’s pressure to find space.
‘Getting work space is becoming difficult -which may force landlord to increase rental fees ,’ he says Mr Jude Mark Bukenya, the Wakiso District chief administrative officer, says trade order evictions are continuing in all areas they have not yet covered .
‘We have received reports that there are people in Kyengera Town Council who pose as district officials and bring back kiosks on the streets where they were earlier removed. I have already sent my enforcement team on ground to apprehend those fraudsters,’ he says
He advises the affected traders not to dare return to the road reserves, but occupy vacant spaces on buildings and in markets.
In Kabale District, the urgent need for working space has forced some landlords to increase rental fees by half the original rates and this has left some tenants stranded in Kabale Town pondering the next course of action after receiving rent increase notices.
Mr John Mutembi, who is operating a general merchandise shop in the Central Division of Kabale Municipality, says his landlady asked him to vacate the building because she wants to use the same place to run a business, but he later found out that another tenant paid double of the rent fees to influence the landlady.
‘When I asked my landlady about my remaining months that I had paid for, she said that she is ready to refund the money. I convinced her to allow me to pay any amount in case she increased the rental fees, but she insisted that she wanted to use the rooms I was occupying. I later found out that she had rented it out to someone else at double rental fees,’ he says.
Ms Jackeline Kyomuhendo, who operates a boutique in Central Division, Kabale Municipality, says her landlord has notified her that monthly rent fees have been increased from Shs150,000 to Shs250,000 effective June.
‘I am wondering why the landlord chose to increase the rental fees in the middle of the year. I am stranded because I cannot raise the amount required or get an alternative working space in the two weeks he has given me. After inquiring from my fellow tenants, I established that most landlords are being pressurised by traders whose working space was demolished as the municipal council authorities implemented the trade order,’ she says.
The chairperson of Bataka Cell Southern Division, Kabale Municipality, Mr Ivan Beigumamu ,who doubles as a commercial house owner in Central Division, attributes the surge in rental fees to increased taxes and costs of maintaining commercial premises. The Kabale Deputy Town Clerk, Mr Eric Sunday, advises landlords to follow the law while increasing rental fees.
‘Let them agree on the rental fees without causing any friction and in case of tenants’ evictions, the landlords should follow the law,’ he says.
A survey in Jinja City reveals that commercial buildings that had remained vacant for years are now fully occupied, while developers are renovating unfinished structures and converting residential premises into commercial units to meet the growing demand. Along Gabula Road, Main Street and Clive Road West in Jinja City, several previously empty buildings are being transformed into lock-up shops for traders looking for business premises.
Mr Isaac Nsubuga, a mobile phone accessories dealer on Main Street, said he was forced to relocate after enforcement officers removed traders operating on walkways and road reserves.
‘I was paying Shs150,000 a month for a small space. After relocating, I now pay Shs350,000 for a lock-up shop. The rent is high, but I have no option,’ he says.
Mr Ronald Bwire, a property owner in Jinja City, says all his commercial units are now fully occupied.
‘For nearly two years some shops remained vacant because traders preferred roadside structures. Since the trade order enforcement started, every available space has been taken up,’ he explains.
In Apac Municipality, traders are reeling from the aftermath of a trade order that led to the demolishing of their kiosks and lock-up shops. Many have been forced to rent houses in non-strategic locations, paying significantly higher rents than before.
Landlords are taking advantage of the situation, hiking rent prices despite the houses not being previously used for business. Mr James Otieno, a retail shop trader, says the new rent is eating into his profits.
‘I’m paying Shs170,000, yet I used to pay nothing. That’s money I could use for stock or school fees,’ he says.
Ms Irene Okello, a trader at Apac Hospital Gate, is now paying Shs200,000 for a room, up from Shs70,000.
‘I’m using my savings to pay rent, just to feed my family. No more money for development,’ she says.
Apac Municipality mayor Bonny McClean Odongo says demolished structures can be rebuilt with approved plans.
‘Some of the structures demolished were along the road reserve and others were erected without approved building plans. Those in the legal locations, but erected without approved building plans, we shall allow owners to get the approved building plans and reconstruct them,’ he says.
In Arua City, Ahmed Angulibo, who deals in second hand shoes on Onzivu Street, says he is still struggling to find new working space.
‘I have moved to most of the landlords in the city and in the suburbs of Ediofe, Awindiri and Mvaradri, but I have failed to get any room. Others are telling me to wait as they improvise,’ he says.
Similarly, Ms Flavia Adokorach of Wandiri Ward, who operated a salon business, says: ‘In my search to relocate, I found a room, but was asked to pay Shs350,000 per month, which I cannot afford.’
‘In the city centre people are being asked to pay Shs500, 000 to Shs800, 000 per month, this needs a stable business,’ he says.
Mr Moses Obeta, the chairperson of Arua City business community, says the elevation of Arua Municipality to a city came with opportunities, but there are challenges.
Across the city, unfinished commercial buildings stand alongside overcrowded arcades already bursting beyond capacity.
Mr Bisco Opejo, a mobile phone accessories dealer, told this paper that the issue of rent in Soroti City increased not just recently, but when the city was created a few years ago.
He said they are now paying Shs1.5 million for space on the main street that previously cost Shs500,000.
‘The issue we know is that we can’t realise the rent paid, often some months we cannot make sales worth Shs1.5m, so we operate on losses, ‘ Mr Opejo says.
In Masindi Municipality, displaced traders are also scrambling for formal business premises. As demand for working space continues to rise, landlords have increased rental charges. Mr Robert Byenkya, an electronics trader, says he was previously paying Shs150,000 per month for a small shop, but now pays Shs300,000 for premises in the town centre.
In Mbale City, the leadership has continued with enforcement operations aimed at evicting street vendors and removing illegal structures in a move intended to restore order, cleanliness, and sanity within the city.
Officials insist that the enforcement of the new trade order is not merely about clearing streets and easing congestion.
At the heart of the crackdown, they say, lies a bigger objective – strengthening local revenue collection and plugging long-standing financial leakages.
For years, informal street vending, unauthorised taxi stages, and boda boda riders operating in unregulated spaces have dominated major streets in Mbale City.
While this informal economy provides livelihoods for thousands, city leaders argue it has also undermined revenue mobilisation efforts. The town clerk for Industrial City Division, Mr Geoffrey Mugisa, says the informal nature of street trade has made it difficult to track and collect revenue efficiently.
‘Many vendors operating along road reserves and pavements reportedly do not pay daily market dues, trading licence fees, or operational permits. Because they operate outside designated markets, revenue officers often struggle to assess their businesses or enforce compliance,’ Mr Mugisa, says.
According to him, trade order is directly linked to revenue order.
‘If traders operate from gazetted markets, it becomes easier to register them, assess what they owe, and ensure accountability, ‘he says.
But for many street vendors, pavements and roadside spaces offer high customer traffic and quick sales, especially for perishable goods such as fruits and vegetables. Inside formal markets, vendors say foot traffic is lower, stalls are limited, and facilities are sometimes inadequate.
Mr Ivan Okech, an economist, says that Uganda’s urban workforce is heavily dependent on the informal sector.
‘Street vending, small retail trade, and transport services absorb large numbers of youth and women who lack access to formal employment,’ he says .