Several shops in Kampala have been closed as city traders begin their strike on July 31, 2024. The traders are calling for President Museveni to address their concerns regarding the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), high taxes, and the impact of foreign investors on local businesses.
Issa Ssekitto, the spokesperson for the Kampala Capital City Traders Association (KACITA), outlined the traders’ grievances. They are upset with what they perceive as excessive import taxes and the implementation of EFRIS, which they believe unfairly burdens local businesses. Additionally, they are concerned about foreign traders dominating small-scale businesses, which they argue undermines Ugandan entrepreneurs.
The strike has been timed to coincide with a planned return of the March to Parliament anti-corruption protests, which organizers hinted might also take place on July 31. The traders have warned that they will continue their strike and keep their businesses closed if President Museveni does not meet with them soon to discuss their issues.
Ssekitto criticized the recent cancellation of a scheduled meeting with the President, which had been set for July 31. The presidency postponed the meeting, citing renovations at the Kololo Grounds in Kampala as the reason. Ssekitto described the cancellation as unprofessional and disrespectful, particularly because it was communicated through a WhatsApp voice note rather than an official letter.
The meeting had originally been arranged after President Museveni missed a similar engagement on June 20. The traders are frustrated by the lack of progress and are demanding a more formal response from the President. They expressed readiness to meet the President at any location, not just Kololo Grounds, as long as it results in a productive discussion.
KACITA’s spokesperson also addressed the impact of previous strikes. The traders’ strike in April 2024 led to a significant shortfall in tax collections, with the government reporting a Shs165.6 billion deficit in June. This shortfall was partly attributed to the disruption caused by the traders’ actions.
The Ministry of Finance noted that Uganda’s tax returns for June fell short of the target, achieving Shs3.030 trillion against a target of Shs3.381 trillion. Ssekitto urged traders to conduct their strike peacefully, emphasizing that they are not responsible for any disruptions beyond their own closures.
In response to the situation, Kampala Minister Minsa Kabanda defended her decision to use a voice note for communication, explaining that she could not prepare an official letter over the weekend. She assured that the President would meet with the traders towards the end of August.
