KAMPALA, Uganda – Traders under the Kampala City Traders Association (KACITA) have threatened to close their shops for one month beginning Tuesday, Nov. 17, in protest against what they describe as unfair tax administration, prolonged customs clearance delays and rising costs of doing business.
The planned shutdown, which could disrupt commercial activity in Kampala and other trading centres, follows growing disagreements between traders and the Uganda Revenue Authority (URA) over customs procedures, digital tax systems and the treatment of local businesses.
KACITA Chairman Issa Sekitto said the association had repeatedly sought dialogue with URA officials but that recent attempts to resolve the disputes had failed. He maintained that traders were willing to negotiate, provided their concerns were taken seriously.
The traders accuse URA of subjecting imported goods to lengthy clearance procedures, with some consignments reportedly taking between two and three months to be released. They argue that similar procedures in neighbouring Kenya take considerably less time, placing Ugandan businesses at a competitive disadvantage.
According to the association, the delays increase storage expenses, tie up working capital and prevent traders from restocking their businesses on time. The situation is particularly concerning as businesses prepare for the Christmas shopping season, traditionally one of the busiest periods for retailers.
Traders have also raised concerns about the costs and administrative demands associated with digital tax compliance systems. While the government has promoted electronic systems to improve revenue collection and accountability, some business operators argue that compliance requirements have become increasingly difficult and expensive to manage.
Another major complaint concerns competition from foreign investors operating retail and wholesale businesses in Uganda. KACITA members argue that some foreign owned businesses enjoy advantages that make it difficult for local traders to compete, although the association’s claims of preferential treatment have not been independently established.
Tensions intensified following a planned meeting between traders and URA Commissioner General John Musinguzi on Nov. 10, which reportedly collapsed after participants were asked to surrender their mobile phones before entering the meeting.
The disagreement further strained relations between the two sides, with reports indicating that police visited KACITA offices the following day. The circumstances surrounding the reported police operation remain unclear.
Earlier in the week, more than 400 traders reportedly attended an emergency meeting to discuss their grievances and possible collective action. The proposed closure emerged as pressure mounted on the association’s leadership to secure a lasting solution.
The latest threat follows previous protests over taxation and business conditions. On Nov. 4, 2025, traders closed shops to express dissatisfaction with high taxes, rental costs, foreign competition and other policies they considered harmful to their businesses.
Despite announcing the latest action, KACITA has maintained that dialogue remains possible. Sekitto has urged URA to recognise traders as partners in national development, arguing that businesses contribute significantly to government revenue, employment and economic activity.
The association’s position is that tax collection should not come at the expense of business survival. Traders want faster customs clearance, more manageable compliance procedures and what they consider fair treatment of domestic businesses.
URA has previously defended customs verification procedures as necessary to prevent revenue losses through practices such as under declaration of imported goods. However, the authority’s detailed response to the latest grievances was not established in the reports available by Saturday.
The proposed shutdown has raised concerns about possible disruptions to trade, employment and the movement of goods, particularly if businesses outside Kampala join the protest.
For consumers, a prolonged closure could affect access to merchandise and disrupt preparations for the festive season. Small businesses that depend on supplies from Kampala’s wholesale markets could also face difficulties.
With the planned closure approaching, attention is turning to whether URA and the traders’ leadership can reach an agreement before Tuesday.
For now, the shutdown remains a threatened action rather than an implemented closure, with KACITA indicating that traders could reconsider their position if meaningful progress is made toward resolving their complaints.
The dispute also comes at a time when importers are facing higher customs tax bills following changes in the exchange rate used by URA to value imported goods. The authority recently adjusted its customs dollar exchange rate from Shs 3,881 to Shs 4,147.66, increasing the shilling value on which applicable import taxes are calculated.
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