The Federation of Small and Medium Enterprises-Uganda (FSME), the country’s leading umbrella body representing over 934,000 micro, small, and medium enterprises (MSMEs), has called on the government to suspend its nationwide trade order enforcement operations. The federation warned that the aggressive demolitions are devastating livelihoods and undermining economic stability.
In a detailed position paper released this month, FSME 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.
According to FSME’s rapid survey of 13,567 member businesses, 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 paper noted.
FSME noted that even licensed businesses were caught up in the sweeps because local authorities often failed to conduct proper consultations or awareness campaigns.
John Walugembe, Executive Director of FSME, recommended that demolitions be halted until meaningful consultations occur and relocation alternatives are ready. He required local governments to finalise context-specific trade order strategies in partnership with stakeholders and comply with the Building Control (Amendment) Act 2026, launch comprehensive nationwide awareness campaigns explaining the benefits of formalisation, and develop shared workspaces and common-user facilities beyond traditional markets to accommodate diverse MSME needs.
“The ongoing trade order operations are adversely affecting the livelihoods of youth and women, as well as the operations of micro, small, and medium enterprises. The fallout from its high-handed rollout and the limited sensitisation/consultation with key stakeholders will be felt for years to come,” he noted.