The government has set strict eligibility requirements for traders who lost property during the recent floods in downtown Kampala, creating fresh concerns among business owners who fear they may miss out on the promised financial support.
The destructive floods, which hit at the peak of the October rains, were worsened by ongoing construction works along the Nakivubo channel. Traders in several arcades reported extensive damage to merchandise, equipment, and stock.
To access government assistance, affected traders must meet a list of conditions, including possessing a Tax Identification Number (TIN), a valid trading licence, proof of income tax payment, and a tenancy or landlord agreement. According to preliminary assessments compiled by the Uganda National Traders Alliance (UNATA), at least 1,621 traders may have lost property during the flooding.
Mr Godfrey Katongole, the chairperson of UNATA, said this figure was submitted to the Office of the Prime Minister (OPM) as the initial record of those affected. However, Mr Katongole expressed concern that the stringent requirements would lock out the vast majority of genuine victims.
‘We have registered a total of 1,621 traders who lost their properties in the flooded water downtown,’ Mr Katongole said in a telephone interview with the Daily Monitor. ‘But when we talked to some officials from KCCA, they fronted harsh conditions that might leave very few traders to benefit. Only about 30 to 50 traders may actually qualify,’ he added.
He explained that most businesses downtown operate under complex sub-tenancy arrangements. A single shop can have between five and 10 subtenants, all paying trading licence fees to one principal tenant. This arrangement, though common, means that many traders do not hold trading licences in their own names, one of the requirements the government now demands.
In response, Kampala Capital City Authority (KCCA) spokesperson Daniel Muhumuza Nuwabiine said the requirements being cited were not specific hurdles created for flood victims, but rather standard statutory obligations expected of every business operating in Uganda.
‘The Business Names Registration Act requires that whatever business is operating in the country must be registered with a business name,’ he said. ‘The Trade Licensing Act provides for the need for a trade licence. Under the Income Tax Act, everyone in business should have a Tax Identification Number to show that you own a business,’ he added.
He explained that the Business Names Registration Act (CAP 109) is especially relevant for traders who operate under business names different from their personal names, something many downtown traders have not formalised.
On the matter of subtenants potentially missing out on support, Mr Nuwabiine was non-committal. ‘Let’s first establish who is eligible to get taxpayer money. Once we establish who is supported, then we can proceed on the modalities of how the support will be extended,’ he said.
Kampala City Traders Association (KACITA) Chief Executive Officer Abel Mwesigye said it was impossible to estimate compensation levels without a clear assessment of individual losses.
Queries
‘With relief, someone can offer you anything they can afford. But with compensation, it has to match the original indemnity. Even with support, we have not harmonised or understood the government’s plan,’ he said. KCCA Executive Director Sharifah Buzeki said the enumeration of affected traders within the nine damaged buildings has been completed and the process has now moved into data verification.
‘We are now analysing the data. Next week we are submitting to the Ministry of Disaster,’ she said. ‘Our work was to enumerate those who were affected, compare with their colleagues within the building to verify whether they are the right people and where they were working from, and then submit the numbers, names, and pictures to the Ministry of Disaster,’ she added.
Earlier this month, Prime Minister Robinah Nabbanja toured the Nakivubo channel and the affected areas to assess the damage firsthand. She issued several directives, one of which required the redevelopment project proprietor, Mr Hamis Kiggundu, to create additional culvert space to ease the flow of stormwater into the main drainage channel. Speaking to the Daily Monitor at the weekend, Ms Nabbanja said a harmonisation meeting will be held tomorrow to finalise the traders’ list.
‘As you are aware, after my interaction with the traders who lost their properties downtown, on the directive of the President, we held a meeting in my office and formed a committee,’ she said. ‘I am told they have come up with a list, and KCCA is verifying it together with ISO. We are going to have a meeting on Tuesday, and we shall tell you what we are going to do next,’ she added.
The requirements
A valid Tax Identification Number (TIN).
A valid Trading Licence.
Proof of Income Tax payment.
A tenancy or landlord agreement.
Verification from fellow traders within the same building.
Presence on the official list submitted to OPM.