The President of the National Entrepreneurs and Traders Association (NETA), Thadeus Musoke Nagenda, has called on the government to establish a special fund to support street vendors barred from operating in Kampala’s Central Business District (CBD).
Speaking during the Uganda Law Society weekly press briefing on Thursday, 26th February, 2026, in Kampala, Nagenda said the proposed fund would help vendors transition from informal street trade into structured businesses operating in designated spaces.
According to Nagenda, such financial support would empower small-scale traders to formalize their enterprises, making them eligible taxpayers and ultimately widening the country’s tax base.
“While engaging with my board executives, we noted that the President previously intervened to support salon owners, mechanics, and other groups through a special fund, so why cannot the government establish a similar facility to help our colleagues formalize their businesses, given that governments around the world invest in the private sector as key partners in development?” Nagenda asked.
He emphasized that the street vendor issue is complex and requires research-based, inclusive solutions, noting that vendors are Ugandans with families and responsibilities who depend on daily trade for survival.
However, Issa Sekitto, Acting Chairperson of the Kampala City Traders Association (KACITA), argued that the challenge extends beyond the presence of vendors to the nature of their operations.
He said unregulated street vending has led to congestion, security concerns, sanitation challenges, and unfair competition for licensed traders operating in formal buildings.
“The nature of this kind of business has created significant disorder, including security concerns arising from heavy congestion in the city, as many vendors operate in the same spaces as compliant traders without paying garbage collection fees or obtaining the required trading licenses,” Sekitto noted.
He further added that licensed traders incur high operational costs, including rent, income tax, presumptive tax, and trading license fees, and that anyone operating without a valid permit in Kampala is doing so illegally.
The debate follows a recent enforcement operation by the Kampala Capital City Authority (KCCA), in collaboration with the Ministry for Kampala and Metropolitan Affairs, to remove street vendors from the CBD in a bid to restore order, improve sanitation, and enhance public safety.
Responding to concerns, Daniel Muhumuza, Director of Public and Corporate Affairs at KCCA, said the authority’s decision was guided by the need to ensure safety, hygiene, and smooth movement within the city.
Since the crackdown began, several shop owners and formal traders have welcomed the move, saying it has restored visibility to shop fronts and cleared pedestrian walkways for customers.
As the debate continues, stakeholders agree that a lasting solution must go beyond enforcement and address the structural challenges facing informal traders.
While authorities maintain that order, safety, and sanitation in the city are non-negotiable, business leaders and vendor representatives are calling for inclusive policies that provide alternative spaces, financial support, and pathways to formalization.
The unfolding discussions highlight the need for a balanced approach one that safeguards urban order while protecting livelihoods and promoting sustainable economic growth in Kampala’s evolving business landscape.
