Prime Minister Robinah Nabbanja has been forced to adjourn a meeting with Kampala traders after tensions escalated over the continued detention of more than 15 traders arrested during the ongoing strike.
According to a police report read at the meeting, the traders who were arrested on the first day of the strike were still in custody. The development sparked outrage among attendees, who refused to proceed with the meeting until their colleagues were released.
The Kampala traders’ strike was launched in protest of what they describe as unfair taxation and the government’s failure to regulate foreign nationals particularly Chinese and Indian business people who enter Uganda as manufacturers but later operate retail shops, in violation of the Trade Licensing Act.
The meeting quickly turned chaotic, with traders chanting and demanding immediate action from the government. As a result, Prime Minister Nabbanja adjourned the talks indefinitely.
“We’re going through tough times, yet many refuse to acknowledge it. I hold the trade leaders accountable. Instead of uniting traders, they’re working to divide and break them apart,” said Hajji Issa Sekitto, Acting Chairperson of the Kampala City Traders Association (KACITA).
On Sunday, business in Kampala’s Central Business District (CBD) came to a near standstill as thousands of traders closed their shops to protest rising taxes on textiles and garments.
The uproar follows the implementation of new import duty regulations, which came into effect on July 1.
Under the revised tax policy: Fabric imports are now taxed at $2 per kilogram or 35% of the value, whichever is higher down from $3/kg while Garment imports are taxed at $2.5 per kilogram or 35%, down from $3.5/kg.
Despite appearing to be reductions, traders argue that the shift to weight-based taxation disproportionately affects them, especially in a sluggish economy where profit margins are already thin.
Sekitto said the shop closures were triggered directly by the revised tax regime, which continues to undermine the viability of small businesses.
“We’ve raised the matter with Parliament, Cabinet, and even the President, but there’s been no meaningful action,” he added.
In anticipation of the strike, security forces were deployed across downtown Kampala early Monday morning to maintain order. Authorities remain on high alert as the strike gains momentum and negotiations stall.
