Private Security Industry Protests Government Favouritism Towards UPDF Owned Business
Private security firms in Uganda are protesting against what they perceive as an unfair competitive advantage enjoyed by a company owned by the Uganda People’s Defence Forces (UPDF). The Uganda Private Security Association (TUPSA) has submitted a petition to the Speaker of Parliament, highlighting concerns about the current tax regime and fees that are negatively impacting their businesses.
One of the key issues raised in the petition is the substantial increase in fees for firearm permits. The cost of acquiring a firearm permit has risen from UGX 100,000 to UGX 1 million, which has had a significant financial impact on private security firms. The chairperson of TUPSA, Mr. Grace Matsiko, expressed the association’s hope that Parliament would address these concerns, emphasizing their importance for the survival of the private security sector and the protection of lives and property.
TUPSA, which has over 300 members across Uganda employing about 100,000 guards, also highlighted the increased fees for permits to purchase new firearms. While the Ministry of Finance had previously agreed to raise the fees from UGX 75,000 to UGX 100,000, these charges were later unilaterally increased to UGX 1 million per gun. Additionally, firearm importers are required to pay an additional UGX 1 million for each gun, resulting in a total fee of UGX 2 million for a single firearm.
The impact of these exorbitant fees has been detrimental to private security companies, forcing some to use outdated weapons, maintain inadequate deployments, or operate without sufficient firearms. This has, in turn, impeded the sector’s growth, leading to the collapse of several firms and resulting in job losses and reduced investments.
Furthermore, the government has imposed a $50 charge for a permit to purchase every 100 bullets, affecting the growth of private security firms and their ability to replenish ammunition stocks.
TUPSA members have called on Parliament to create a level playing field following the establishment of NEC Security Services Ltd, which is owned by the National Enterprise Corporation (NEC). NEC Security Services Ltd is affiliated with Luweero Industries, a commercial entity of the UPDF. Private security firms claim that this government-owned company enjoys preferential treatment, including the use of government resources, personnel, and automatic rifles, providing them with a significant advantage in the market.
Private security companies argue that government-owned security firms may offer lower pricing to clients due to their reduced operational costs. However, in July, the CEO of NEC, Lt Gen James Mugira, assured Parliament that NEC Security Services Ltd would not deploy UPDF personnel.
