How thieving workers are killing businesses

What the report says

The Observer reports that some Ugandan business owners say employee dishonesty is eroding profits through stolen sales, diverted customer payments and other forms of internal fraud. The article centers on Aida, a shop owner who said she discovered suspicious behavior while she was on maternity leave and later decided to shut her business for five months rather than risk it collapsing. According to her account, workers allegedly sold goods outside the shop’s stock and steered customers toward their own payment accounts.

The piece says Aida’s experience reflects a broader concern among small traders who operate on thin margins and can struggle to notice losses until cash is missing from stock purchases, rent or supplier payments. It also cites another trader, Sarah Najjuki, who said theft is not always direct cash removal: employees may overcharge customers, keep the difference, or underreport sales. Such practices can also damage a shop’s reputation if customers realize they were charged unfairly.

The article includes a counterpoint from Asuman Mwanje, spokesperson for the Kampala City Traders Association, who argued that poor bookkeeping and weak supervision make it easier for losses to go unnoticed, and that wider pressures such as taxes, borrowing costs and operating expenses also contribute to business failure. KACITA says it has been encouraging traders to improve financial literacy and use monitoring tools. More broadly, the report frames employee theft as one of several risks facing small businesses in Uganda and elsewhere, rather than the only cause of collapse.