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Businesses count losses as Kampala traders strike
A shop is seen closed on July 31, 2024 as city traders resumed their shop shutdown strike in Kampala on July 31, 2024. PHOTO/MICHAEL KAKUMIRIZI
What you need to know:
- Godfrey Katongole, the chairman of Kampala Arcade Traders Association (KATA) said the strike had a big impact.
The closure of shops by traders in Kampala City to protest the cancellation of their meeting with the President yesterday paralysed many business operations.
The traders commenced the strike yesterday, protesting the postponement and demanding that President Museveni scraps the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) being enforced by the tax collector, the Uganda Revenue Authority (URA).
They also want a reduction of heavy taxes on imported garments, barring Chinese investors from operating retail shops, and reducing import tax from 35 percent to 25 percent.
Postponements
The traders announced the strike on Tuesday evening through Mr Issa Sekitto, the spokesperson of Kampala Capital City Traders Association (Kacita).
KACITA spokesperson Issa Ssekitto addresses journalists in Kampala on July 30, 2024. PHOTO/MICHAEL KAKUMIRIZI
He said the decision was triggered by communication from State House that President Museveni had cancelled the meeting at Kololo Ceremonial Grounds on account that the venue was under renovation.
This was the second delay after the President first met the leaders of the traders at State House Entebbe on April 19, followed by a general meeting on May 7 at Kololo. Then, the President promised a follow-up meeting on June 20, but was postponed to yesterday, and never materialised, sparking off the current strike.
Transporters hit hard
One of the sectors hit hard yesterday was the transport sector, whose operators say they don’t work whenever the traders close shop.
People pass by closed shops in downtown Kampala after traders started their renewed protest against the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), among other issues, on July 31, 2024. PHOTO / PHOTO/ ISAAC KASAMANI.
Mr Rashid Ssekindi, the chairperson of the Uganda Taxi Operators Federation (UTOF) said the majority of the taxis that normally ply the town routes four to five times a day yesterday undertook only one trip and a few of them twice.
“We majorly carry traders and their customers. If a trader closes his or her shop, who do you expect us to carry? We have incurred losses today and that has extended to the fuel stations where we buy fuel as well,” he said.
Boda boda cyclists warn
Mr Raymond Mujuni, the secretary general of Boda-Boda Industry Uganda, an umbrella body of boda boda groups across the country, said they might be forced to join the traders’ strike if the government does not respond to their demands.
“Today, most of the boda boda riders have been counting losses because they were not aware of the strike. Many of our boda boda operators deal in cargo. And there is no boda boda man who entirely depends on passengers, so if traders continue to strike, we may end up joining them. We also have shops and we buy merchandise from [downtown] Kikuubo,” Mr Mujuni said.
“So, expect us to join if their demands are not addressed. We’re in full support of the traders. No cargo means no work because most of us depend on that,” he added.
Dealers cry out
Food vendors in downtown Kampala also said they suffered losses. Margaret Nakanjako, one of the food vendors, said she cooked only half of the food she normally prepares but still lacked clients to clear out the little quantity.
A food vendor prepares to serve traders next to their closed businesses at the resumption of their shop shutdown strike in Kampala on July 31, 2024. PHOTO/MICHAEL KAKUMIRIZI
Even the few shops that remained open did not get clients because most customers stayed home, while others feared venturing out into the city centre and downtown because of heavy security deployment.
Brokers, touts and luggage pushers at taxi and bus parks were also affected by the strike. They said clients who normally engage them did not show up.
“I did not even earn Shs10,000 today, yet normally I can even pocket Shs50,000,” said Moses, one of the luggage pushers in Kikuubo.
Strike divides traders
Mr Godfrey Katongole, the chairman of Kampala Arcade Traders Association (KATA) said the strike had a big impact because the traders yesterday received many calls from different stakeholders, asking them to halt the strike.
“But we are saying the government should first address our demands. Not meeting is okay, because he [President Museveni] halted the use of EFRIS in the shops but we are not sure of what next. The President agreed to meet us, but we want to be sure all our demands are addressed. We do not want to live in fear of what comes next. URA has a container downtown, we want to know why that container is there,” he said.
Similarly, Mr Thaddeus Musoke Nagenda, the chairman of Kampala Capital City Traders Association (Kacita), said the Ministry of Trade has requested them to call off the strike and wait for a rescheduled meeting with President Museveni.
“People have different ideas about this strike. So, we need to meet to harmonise this position. The meeting will decide whether we maintain the strike, or we call it off,” Mr Musoke said.
