Kitgum pauses enforcement of new taxes as traders protest

19 February 2026, 2:21 pm

By Otim Moses

More than 80 traders in Kitgum staged a peaceful protest on Tuesday morning over what they describe as excessive taxes under a new trading licence regime introduced by Kitgum Municipal Council.

Shop owners from the Central Division accused revenue collectors of inflated assessments and aggressive demands for immediate payment.

Traders’ chairperson, Akena Wellborn, said many businesses were shocked by trading licence fees that nearly doubled following inspections, with no prior consultation.

The traders also raised concerns about competition from the Bar Dege auction market, charges on signposts, hawkers operating in front of formal shops, and inconsistent licensing fees.

They argue that the new system fails to consider rising operational costs, including obligations to the Uganda Revenue Authority.

They further claim that members of the Indian business community operate both wholesale and retail businesses using a single trading licence.

Kitgum Municipal Town Clerk, Joseph Emmanuel Bagonza, promised a review within one week and temporarily suspended enforcement to allow for dialogue. Regarding concerns about the Indian business community, Bagonza noted that Uganda operates under a free-market policy, stating that the matter is beyond their direct control, but added that discussions could still be held on whether single or dual licensing is appropriate.

Traders are now awaiting negotiations, hoping for fairer rates that protect their businesses while supporting local revenue targets.