City traders meet Prime Minister again over foreign nationals in retail trade

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City traders, under the umbrella of the Kampala City Traders Association (KACITA), held another meeting with Prime Minister Robinah Nabbanja on Tuesday, seeking government intervention in what they described as growing unfair competition from foreign nationals operating in the local retail sector.

The latest engagement, which took place barely a week after a previous meeting at the Uganda Bureau of Statistics (UBOS) offices, aimed to follow up on trade-related concerns, particularly the influx of foreigners into small-scale businesses traditionally reserved for Ugandan nationals.

In a statement issued after the meeting, Abey Mwesige, Chief Executive Officer of KACITA, explained that the traders’ leadership, led by Hajji Issa Sekitto, met with the Prime Minister and Gen. Wilson Mbadi, the Minister of State for Trade, to discuss restoring order in the trade sector and regulating foreign investors, especially those engaged in petty trading.

“We are concerned about foreign nationals, especially those from outside the East African Community, who were granted investment licenses and work permits to establish large-scale ventures, but instead are running small retail shops and hawking goods. This undermines local traders, disrupts trade order, and distorts the market,” said Sekitto in an interview with New Vision.

KACITA argues that such practices have led to increased rental rates in city commercial areas, as foreign traders often pay more, leveraging tax holidays and other incentives not available to local business owners.

Call for a Multi-Stakeholder investigation

During the meeting, Sekitto called on the Prime Minister to institute a multi-stakeholder committee to investigate how foreign nationals continue to dominate small-scale trade, despite existing regulations.

The proposed committee would include representatives from Uganda Police, Immigration Department, Uganda Revenue Authority (URA), Uganda Investment Authority (UIA), Kampala Capital City Authority (KCCA) and KACITA.

The traders believe such a task force could provide data-driven recommendations and ensure the implementation of existing laws governing foreign business operations in Uganda.

Prime Minister’s assurance

In response, Prime Minister Nabbanja acknowledged the traders’ concerns and pledged to act.

“We are organising a broader meeting involving the ministers responsible for trade, finance, local government, and Kampala metropolitan affairs to comprehensively address this issue,” she said.

This was Nabbanja’s second meeting with the KACITA leadership in just one week. The first was called to resolve tensions over tax-related grievances that led to a temporary closure of shops in downtown Kampala. Traders reopened their shops after she promised to address non-policy issues within a month.

Regional context: Tanzania's tough stance

The traders' renewed demands come at a time when neighbouring Tanzania has issued a sweeping ban on foreign nationals engaging in retail trade and other small-scale business activities.

On July 28, 2025, Tanzania’s Ministry of Industry and Trade announced that foreigners would no longer be allowed to operate businesses such as: Retail and wholesale of basic commodities (excluding supermarkets and specialised stores), mobile money services, electronic repairs, tour guiding, parcel delivery and small-scale mining, among others.

The directive, issued under the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order of 2025, was presented by Trade Minister Selemani Jafo, who emphasised the need to protect Tanzanian citizens from being edged out of economic opportunities.

According to the Tanzanian government, foreign dominance in these sectors had worsened youth unemployment and marginalised local entrepreneurs.

Ugandan traders want balanced coexistence

Inspired by the Tanzanian model, Ugandan traders now want the government to review policies on foreign business participation to ensure balanced coexistence that supports both investment and local enterprise.

“We are not against foreign investors,” said one KACITA member. “But they should do what they’re licensed to do—build factories, create jobs, and contribute to the economy. Petty trading should be left to Ugandans.”

The matter remains a pressing issue for the business community, and traders are hopeful that government action will restore order and fairness in Uganda’s retail sector.

What’s Next?

The Prime Minister is expected to convene a multi-ministerial meeting in the coming weeks. Meanwhile, KACITA and its members are urging the government to fast-track enforcement of existing business regulations to curb what they term as “backdoor retailing” by foreign nationals.

As the debate intensifies, traders are calling for a national policy framework that clearly defines which sectors are reserved for Ugandans and how foreign investment should be regulated in practice, not just on paper.