Kampala traders suspend strike, await presidential talks

KAMPALA – Kampala’s downtown traders, long the backbone of the city’s informal economy, have temporarily halted their strike, following a promise that President Museveni will meet them soon.

The traders, organized under the Kampala City Traders Association (KACITA), staged a sit-down strike last week, citing multiple challenges that threaten their livelihoods, from unfair taxation to flood losses that wiped out goods and disrupted trade across the city center.

“We have paused the strike, but this is not the end of our campaign,” said Issa Ssekito, KACITA Chairperson. “We want the government to hear us, compensate those affected by the floods, and act on long-standing concerns that have been ignored for too long.”

Among the traders’ concerns are unfair value-added tax (VAT) policies, coercive enforcement of the Electronic Fiscal Receipting and Invoicing System (EFRIS), high import taxes on fabrics and garments, non-refunding of the six percent withholding tax, and competition from foreign investors. Traders are also pressing authorities to remove street vendors from major arcades and address landlords charging rent in U.S. dollars, which they say is unsustainable.

The timing of the strike—amid lingering flood damage and ongoing election campaigning—forced traders to recalibrate their approach. Ssekito noted that he and other leaders faced personal risks, including arrests during demonstrations, underscoring the high stakes involved.

“These challenges are real, not exaggerated,” Ssekito said. “Traders are among the biggest taxpayers in Kampala, yet the tax burden is choking us. We need real solutions, not temporary fixes.”

The traders’ action follows a similar protest in August, which was suspended after talks with Prime Minister Robinah Nabbanja. However, KACITA insists that few of the issues raised then have been resolved, prompting renewed action.

Minister for Kampala, Minsa Kabanda, confirmed that President Yoweri Museveni has agreed to meet the traders after concluding his upcountry campaign. She also said the government is compiling a verified list of flood-affected traders for compensation.

“Compensation will be processed once verification is complete,” Kabanda said.

While the strike is on hold, traders are already considering new strategies to ensure their voices are heard, including revisiting trading licenses and engaging directly with shipping companies.

For Kampala’s traders, the pause is a tactical move, not a retreat. Their message is clear: urban commerce cannot thrive under uncertainty and unchecked costs, and the government must act decisively to support the city’s business backbone.