By Jumah Kakomo
As Uganda approaches the year 2026, the National Entrepreneurs and Traders Association (NETA–Uganda) has expressed growing concern over the difficulties facing traders and business owners across the country. The association has identified high taxation, escalating rental costs, the rise of street vending, and increased competition from foreign investors as major issues requiring urgent government intervention.
Speaking on behalf of NETA–Uganda, spokesperson Muhumuza Muwaasi stated that Uganda’s high tax burden continues to pose serious challenges, particularly for small and medium-sized enterprises (SMEs). He explained that excessive taxation has increased compliance requirements, weakened incentives for entrepreneurship, and contributed to declining public trust due to perceptions of unfairness and corruption within the tax system.
Muwaasi noted that these pressures have led to increased tax avoidance, disproportionately affected low-income earners, and intensified financial strain on traders, especially amid rising inflation and limited access to tax education. He added that such challenges have frequently resulted in protests by traders seeking relief from what they view as an overly punitive tax regime.
He further criticized the current tax structure, arguing that traders are subjected to multiple overlapping taxes that hinder business growth and sustainability. According to Muwaasi, an immediate review of the tax framework is necessary to ensure it promotes entrepreneurship and economic development rather than constraining it.
On the issue of rental costs, Muwaasi highlighted that many business owners are struggling with steep rent increases. He revealed that some traders have experienced rent hikes of between 50 and 100 percent, attributing this trend to property speculation and post-pandemic market adjustments. He warned that rising rental charges are placing additional financial pressure on businesses already operating under difficult conditions.
Addressing the impact of street vendors and hawkers, Muwaasi outlined several concerns. He stated that formal traders who comply with licensing and tax requirements face what they perceive as unfair competition from vendors operating with lower overhead costs. He also noted that unregulated street vending contributes to urban challenges, including damaged pavements, blocked drainage systems, waste accumulation, and broader public health and infrastructure concerns.
Muwaasi added that the informal nature of street vending often leads to frequent conflicts with authorities such as the Kampala Capital City Authority (KCCA), resulting in evictions and ongoing business instability. He further observed that the absence of proper records makes it difficult to accurately assess the economic contribution of street vendors or enable them to access formal financial services.
In addition, Muwaasi raised concerns about child labor, noting that underage children are often involved in vending activities to support household livelihoods.
He also expressed concern over the increasing participation of foreign investors in business sectors traditionally dominated by low-income Ugandan entrepreneurs, including small-scale trade and related services. Muwaasi described this development as a complex socio-economic challenge driven by an uneven playing field, where foreign-owned enterprises often have greater financial resources, advanced technology, and regulatory advantages that local businesses struggle to match.
According to Muwaasi, this imbalance places intense competitive pressure on local entrepreneurs, limits the growth of indigenous enterprises, and risks concentrating economic benefits in foreign hands—an outcome he cautioned may conflict with Uganda’s long-term development goals. He emphasized that these challenges reflect systemic issues that require well-considered policy responses to foster a more equitable and sustainable business environment.
Muwaasi noted that these concerns are widely shared among traders and business leaders across the country, many of whom continue to call for improved business conditions. While acknowledging the government’s commitment to establishing a predictable, fair, and voluntary tax system, he stressed that more concrete action is needed to address the persistent challenges confronting traders and business owners.
