Trade ministry to inquire into China Town supermarket expansion

What the report says

Uganda’s Public Accounts Committee for Central Government has asked the Ministry of Trade, Industry and Cooperatives to review the rapid spread of China Town Super Store outlets in Kampala. According to Watchdog Uganda, lawmakers said the stores should be monitored to prevent unfair competition and protect Ugandan retailers selling similar goods.

The committee raised the issue during a meeting with ministry officials on Thursday, 1 October 2026. Chairperson Patrick Nsamba questioned whether the ministry had assessed the impact of the outlets on local traders and argued that foreign-owned retailers may benefit from cheaper credit, giving them an advantage in the market. Kyotera District Woman MP Fortunate Nantongo also said the perception that China Town products are always cheaper could still pull customers away from local businesses.

In response, the Ministry of Trade said it would examine whether the stores comply with Uganda’s trade and investment laws. Commissioner for Internal Trade Zackey Kalega cited rules that limit non-citizens from certain kinds of retail activity, as well as an investment threshold linked to foreign investors seeking licenses. He said the ministry will study China Town’s status and determine whether any regulatory action is needed.

The development is part of a broader debate in Uganda over how to balance foreign investment with protection for domestic traders, especially in retail markets in major urban areas.