Uganda: Costly Markets, Empty Stalls - Multi-Billion Projects Along Masaka Road

26 August 2024

The market, which has over 300 stalls and the capacity to accommodate up to 1,000 traders, now sees fewer than five vendors operating regularly.

Despite significant government investment in constructing modern markets along major roads to provide traders with attractive and safe places to operate, many of these markets are being abandoned by vendors.

A glaring example is the market in Lukaya, straddling the Masaka-Kampala highway, renowned for its vibrant street food scene that draws countless travelers.

This bustling roadside trade has long been the heart of Lukaya's economy, contributing to its growth and prompting local leaders to push for its elevation to municipal status.

To address concerns of safety and sanitation in the often accident-prone Lukaya roadside market, the government invested Shs3.2 billion in constructing a modern market for food vendors.

The Local Government Minister, Raphael Magyezi, inaugurated the Lukaya Highway Market in February 2021, expressing confidence that the new facility would provide vendors with a decent place to work while boosting revenue collection for the Lukaya Town Council.

"This market will provide vendors with a safe and dignified place to operate while also boosting revenue collection for Lukaya Town Council," Minister Magyezi said during the launch.

However, just four years after its grand opening, the market stands nearly deserted, with only a handful of vendors remaining.

The traders who once occupied the stalls have abandoned the government-built market and returned to their old, informal trading spaces, citing numerous issues with the new facility.

Vendors claim that the market was poorly designed and constructed in a low-lying area, making it prone to flooding during heavy rains.

The lack of proper drainage and infrastructure has turned what was meant to be a modern trading center into a liability for traders.

Additionally, the market's location in a valley without adequate parking or access points has deterred customers from patronizing the stalls.

According to the vendors and local leaders in Lukaya, these design flaws have made it difficult for customers to reach the market, leading to a significant drop in sales.

The market, which has over 300 stalls and the capacity to accommodate up to 1,000 traders, now sees fewer than five vendors operating regularly.

Namulindwa Barbra, a sweet banana vendor who is one of the few traders still trying to make a living in the new market, has been counting her losses since she moved there six months ago.

"I started with Shs700,000, but my capital keeps shrinking because most of my bananas rot without buyers. If things don't improve, I'll have to leave next month," Namulindwa lamented.

The situation has been exacerbated by the market's outstanding debts. The market owes Shs1.7 million to the National Water and Sewerage Corporation (NWSC) and Shs1.2 million to Umeme.

These unpaid bills led to the disconnection of water and electricity, further hindering the vendors' ability to operate effectively.

The lack of water is particularly problematic for those selling perishable goods like sweet potatoes and fresh fish, which require regular cleaning.

Another major issue raised by the vendors is the alleged corruption and mismanagement by local leaders. According to some traders, once the market was opened, local leaders took control of the stalls, demanding exorbitant fees from the vendors.

Those who could not afford to pay these fees were forced to return to their old trading spots.

Ms Annet Nanziri, a vendor at the Lukaya roadside market, explained her situation: "I'm a poor woman. How could I pay the 400,000 shillings that was requested by those who had occupied the stalls?"

With no other option, Nanziri and many others returned to the old market, abandoning the new facility that was supposed to improve their livelihoods.

The Resident District Commissioner (RDC) for Kalungu District, Dr Paddy Kayondo, acknowledged the challenges facing the Lukaya market and suggested that the only solution might be to demolish and reconstruct it.

"We've exhausted all efforts to make this market functional, but nothing has worked. At this point, the only option left is to reconstruct it," Dr Kayondo said.

The Lukaya market is not an isolated case. Several other markets along the Kampala-Masaka highway, including Mukoko Market and Kabale Bugonzi Market, have also been abandoned by vendors.

These markets, built with taxpayer money, now stand idle, raising questions about accountability and the efficient use of public funds.

As the government continues to invest in infrastructure projects, the recurring issue of poorly designed and underutilized markets highlights the need for better planning, consultation with stakeholders, and oversight.

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