The executive director of the Federation of Small and Medium Enterprises (FSME), John Walugembe, has called on local authorities to immediately suspend all demolition operations targeting small businesses until clear guidelines and alternative trading spaces are provided for affected vendors.
Walugembe made the call in response to a nationwide crackdown on informal trade that began in Kampala, where the Kampala Capital City Authority (KCCA) evicted street vendors and demolished their structures as part of a trade order directive issued by the Permanent Secretary of the Ministry of Local Government.
The directive has since been extended to town councils and municipalities across the country.
The FSME says it has engaged with over 13,000 small and medium enterprise owners affected by the crackdown. Walugembe said their findings paint a grim picture: 93% of those consulted have had their businesses demolished, 79% have lost contact with their clients, and 68% are uncertain about their next step.
He warned that the manner in which the operation has been carried out violates the law, noting that several of the demolished businesses were fully licensed and operating legally at the time of the demolitions.
He said the federation was preparing a platform through which all affected traders can register their details, with the goal of pursuing legal redress against the responsible local authorities.
“We understand that most of the affected businesses are related to youth who have now been chased away. This will increase the crime rate,” Walugembe cautioned.
He further urged all affected business communities to liaise with the federation and formally log cases against the local authorities responsible for the demolitions.
Walugembe said although the federation does not oppose the concept of trade order, it objects to how it is being implemented.
“We are not opposing trade order, but the way it is being conducted is against the laws of Uganda. All those involved will be prosecuted personally,” he said.
He called for an immediate halt to all demolition operations until transparent and lawful guidelines are established, and until traders are provided with viable alternatives before being displaced.
