The umbrella body of small scale entreprenuers under Federation of Small and Medium Enterprises-Uganda (FSME),representing over 934,000 members has called on the government to immediately suspend nationwide trade order enforcement operations,
John Walugembe the Executive Director argues that the aggressive demolitions are devastating livelihoods and undermining economic stability.
In a detailed position paper released this month, FSME acknowledged that the operations are legally grounded in the Trade Licensing Act, the Kampala Capital City Authority Act 2010 and local ordinances.
However, the organisation argued that authorities failed to follow due process, resulting in widespread destruction of licensed businesses and avoidable hardship for vulnerable traders.
The crackdown stems from directives issued earlier this year. On 5 February 2026, Minister for Kampala Capital City and Metropolitan Affairs Hajjat Minsa Kabanda announced a two-week sensitisation campaign ahead of enforcement starting 19 February, aimed at clearing illegal roadside vending from pedestrian walkways, road reserves and drainage channels to restore order and protect public safety. On 10 March, the Permanent Secretary of the Ministry of Local Government, Mr Ben Kumamanya, instructed all Chief Administrative Officers, city and municipal town clerks to implement the trade order nationwide.
FSME’s rapid survey of 13,567 member businesses paints a grim picture of the fallout. Some 93 per cent reported complete loss of workspaces after being evicted from roadsides, while 88 per cent said their stalls, kiosks or assets were destroyed or confiscated. Nearly 80 per cent experienced sharp revenue drops as customers could no longer locate them, and 68 per cent said no affordable alternative trading spaces were provided. Many of the affected traders are women and youth whose roadside businesses fund school fees, food and healthcare.
The position paper highlights additional concerns: rising insecurity as displaced youth lose legitimate income, reduced local and national revenue collection, and psychological distress caused by early-morning demolitions backed by security forces. FSME noted that even licensed businesses were caught up in the sweeps because local authorities often failed to conduct proper consultations or awareness campaigns.
To resolve the crisis, FSME recommends: the halting of demolitions until meaningful consultations occur and relocation alternatives are ready and develop shared workspaces and common-user facilities beyond traditional markets to accommodate diverse MSME needs.
“These operations, though well-intentioned, have been rolled out in a high-handed manner that will hurt the economy for years,.We appeal to government to pause, consult, and implement solutions that protect rather than punish the backbone of Uganda’s,” Walugembe said.
