Employee theft killing Uganda’s small businesses

What the report says

The Observer’s commentary argues that employee theft is a serious but often hidden threat to Uganda’s small businesses, especially when owners are not present to supervise day-to-day operations. The piece cites examples from business owners in Masaka, mobile-money operations and guest houses, where workers allegedly diverted cash, disappeared with funds or stole over long periods before being detected. One business owner said his supermarket eventually collapsed after staff theft pushed the operation into debt.

The article says the problem can remain unnoticed for years, particularly in businesses that keep few or no records. It cites an Economic Policy Research Centre study based on 2021 data showing that nearly half of fully informal businesses kept no records. Without logs, the author writes, owners cannot compare sales, receipts and deposits or spot unusual losses.

The commentary attributes employee theft to several factors: low wages, weak personal integrity, pressure to appear prosperous, and poor internal controls. It also says some workers exploit simple loopholes, such as missing receipts, inflated supplier prices or using personal mobile-money accounts.

As advice, the piece recommends stronger recordkeeping, closer supervision, rotation of staff who handle money, surveillance cameras, and tougher action against theft. While the article is opinion-led, its central warning is that repeated small losses can quietly drain capital, leaving small enterprises with empty shelves and debt.