NO BUSINESS: A street in the usually busy Kikuubo business centre in the city was yesterday deserted as traders went on strike. PHOTO BY STEPHEN WANDERA  

City traders on Wednesday rejected a request by the government for a one-month grace period in which it promised to consider their grievances, as they began a strike that brought business to a standstill.
The Trade and Industry Minister, Ms Amelia Kyambadde, told some traders who gathered at Nakivubo Stadium that the government would comprehensively deal with their grievances, but the unsatisfied traders said they would continue with the strike today.
A number of factors, including a slow-down in business as unprecedented inflation rates of 16 percent bite, and high fuel prices partly driven by spikes in the dollar exchange rate, cumulatively contributed to the frustration within the traders’ community culminating in the ongoing strike.
“We need one month to solve the problem. Right now the Minister of Finance is going to Cabinet and Parliament to present our proposition to deal with the currency issues,” Ms Kyambadde said.
But the traders remained unmoved, some booed the minister before they altogether walked out on her, saying a month is too long. They demanded immediate action.
Traders started a two-day strike on Wednesday by closing their businesses in protest at the rapid loss of value in the shilling, unfair competition and an increase in the fee for trading licences.
Ms Kyambadde, who later made a brief statement in Parliament, among others suspending the licences, had earlier led a government delegation to meet business persons and stakeholders in an attempt to avert the traders’ strike.
Directly addressing Ms Kyambadde, who was flanked by three other ministers, the traders’ main concern was the depreciation of the shilling in the face of the dollar, eroding much of their capital and margins as imports become more and more expensive.
The traders also pointed out that taxes are paid to the Uganda Revenue Authority in dollars rather than in shillings, making the traders highly vulnerable to swings in exchange rates.
“Why should we pay taxes on imports to the URA in dollars rather than [Uganda] shillings? The price of the dollar is making us pay more for the goods,” Mr Wasswa Ntale pointed out.
The traders also demanded that the government stops all foreigners dealing in retail business in the country. Local traders request a monopoly in this sector and believe that foreign retailers, particularly from Asia, are unfairly pricing them out of business.
In response, the Minister of Internal Affairs, Eng. Hillary Onek, conceded that there are a number of illegal foreign investors and called on the traders to collaborate with the government in deporting them.
“I call on all of you to help me identify illegal foreign traders and goods so that the government can expel them. We are all in this together,” he said.
More grievances
A third recurring grievance was the recent increase in the levy of licence fees. This year, government has increased the licence fees for each retail shop within the central business district from Shs35,000 to Shs280,000 while wholesalers must now pay Shs665,000, up from Shs100,000.
The main traders association – the Kampala City Traders Association (KACITA) - leaders did not attend the Nakivubo meeting.
“We did not organise that meeting,” said Mr Issa Sekitto, the spokesperson for KACITA . “We do not know the identity of those who attended the meeting. It should have been at a more organised place where those in attendance are registered,” Mr Ssekitto told Daily Monitor.
At 10 a.m., Daily Monitor reporters found scores of people leaving the stadium, disappointed KACITA was not involved. “We don’t see anyone from KACITA so we are leaving. It seems we were lied to,” explained a trader on his way out.
At a later press conference at the Government Media Centre, Ms Kyambadde said KACITA had agreed on Tuesday to call off the strike and meet her. But Mr Everest Kayondo, the KACITA chairsperson, denied this claim later and indicated that he was pressured by Ms Kyambadde to make a statement on local television that did not reflect his position.
A section of vehicle dealers under the Uganda Importers, Exporters, and Traders Association (UGIETA) also joined KACITA in the strike.
Earlier, yesterday morning rumours had been rife that the strike was called off after a meeting between KACITA officials and President Museveni.
Mr Ssekito denied the claim and added that the strike would continue into a second day today. The strike also spread to Masaka yesterday, prompting military police deployment.
Reported by John Njoroge, Nicolas Kostov, Issa Aliga & Andrew Bagala