Kampala Traders Shut Shops in New Strike Over Taxes

Downtown Kampala descended into a tense calm on Tuesday as traders launched a fresh sit-down strike, closing their shops in protest against what they described as the Uganda Revenue Authority’s (URA) “exorbitant taxation” and an unfair trade environment.

Arrests and Heavy Police Deployment

Police arrested several traders who were seen moving through the streets, urging others to shut down in solidarity. Officers patrolled Nabugabo and Kikuubo streets, where most arcades remained closed.

Despite the strike, some shops in Kikuubo continued trading, while street vendors used the opportunity to sell freely in front of the shuttered arcades. At Park View building, traders were seen sitting idly outside their locked shops, some dozing under the mid-day heat.

Core Grievances

The protestors accuse URA of creating unnecessary bottlenecks in the import chain by introducing a new tax collection system that they say has caused delays in clearing containers in Nairobi. They further demand the resignation of URA Commissioner General John Musinguzi Rujoki, arguing that his administration has failed to address their concerns.

Beyond delays, traders accuse the government of looking away as Chinese businesses operate tax-free in retail trade, undercutting Ugandan shop owners who are already weighed down by VAT, rent increments, and the controversial Electronic Fiscal Receipting and Invoicing System (EFRIS).

A History of Unrest

This is not the first time Kampala’s business community has risen against URA’s policies.

• April 2024 – Arcades in Kikuubo, Mini Price, and Modern closed in protest against EFRIS, VAT at 18%, and foreign competition.
  
• July 2024 – Traders staged another strike after a scheduled meeting with President Museveni was cancelled. That standoff saw widespread closures along Nasser Road and Nakivubo.
  
• July 2025 – Traders at Zainabu-Aziiza Emporium and Hardware City in Nakasero staged a walkout over new container clearance directives, rent hikes, and double taxation.
  

Despite several meetings between the State House and trader associations like KACITA (Kampala City Traders Association), mistrust has remained. Many traders argue that government promises are rarely followed by action.

What Lies Ahead

The latest strike signals deepening frustration. Leaders insist they will not reopen until their demands are heard, while police have warned against what they call attempts to “incite” further unrest.

Whether the government opts for fresh dialogue or a harder stance remains to be seen. What is clear, however, is that the economic heartbeat of Kampala, its bustling downtown arcades, has once again been silenced by a crisis that refuses to go away.