Tanna Engages KACITA on Key Challenges Facing Traders

What the report says

Trade Minister Sanjay Tanna met leaders of the Kampala City Traders Association (KACITA), headed by Issa Sekito, to discuss long-running business concerns including taxation, import permits, unfair competition and access to markets. According to Nile Post, the talks were part of the Ministry of Trade, Industry and Cooperatives’ effort to work more closely with private-sector groups and involve traders more directly in policy discussions.

The meeting also explored ideas for bringing several trade bodies into a more coordinated structure, potentially linking KACITA with groups such as FUTA, PSFU and UNCCI. Supporters of the proposal said a more united private sector could speak with a stronger voice when engaging government on trade and investment issues.

A key topic was the permit process for rice importers, especially those bringing in rice from Tanzania. Tanna said the ministry was working with the Uganda Revenue Authority to simplify the system while still requiring businesses to meet legal and licensing rules. He also said government wants to protect local rice farmers and processors while encouraging domestic production.

Traders raised additional concerns about the 30 percent environmental levy on imported second-hand clothes, garment taxation based on weight, and direct sales by manufacturers to consumers, which they say create uneven competition. The discussion also touched on disruptions linked to Ebola-related restrictions and on the role of the Uganda Free Zones and Export Promotions Authority in helping businesses reach regional and international markets. More broadly, the engagement reflects ongoing debates in Uganda over regulation, formalisation and how to balance local industry with trade openness.