Uganda: Vendors Abandon Hoima Market, Cite Lack of Customers

19 September 2024

Despite complaints to city authorities, vendors allege that leaders prioritize revenue from these external markets over those inside, contributing to their losses.

Most vendors at Hoima's Shs 12 billion modern market are beginning to abandon their stalls, citing a significant drop in customer traffic as they opt to purchase from outside vendors who do not pay rent.

Despite complaints to city authorities, vendors allege that leaders prioritize revenue from these external markets over those inside, contributing to their losses.

Located on Fort Portal Road, the Hoima Central Market was constructed nine years ago under the Markets and Agricultural Trade Improvement Program (MATIP).

However, a recent visit revealed that many stalls, especially on the upper floors, are empty.

Ground floor vendors are also threatening to vacate due to poor city leadership that allows outside vendors to sell similar products.

Julius Ayesiga, the chairman of Hoima Central Market, criticized city leaders for permitting the establishment of additional markets nearby, which pay minimal taxes.

He stated, "According to the original plan, no market was supposed to be near the main market, yet now there are many. Vendors outside don't pay taxes, so those inside are leaving for areas where they can access customers without the tax burden."

Geoffrey Murungi, who heads the fish sector, shared frustrations from discussions with Mayor Brian Kaboyo and his councilors, who claimed that outside markets generate more immediate tax revenue for the city.

"When leaders say they benefit more from external vendors, it's a problem," Murungi remarked.

"They prefer quick cash from outside markets instead of the revenues that go back to the centre at their discretion."

Adam Kato, who manages the matooke section, lamented that since the market's construction, vendors have faced continual hardships.

"We were excited about this modern market, but it has brought us tears. The taxes are high, and we lack essential services like water and hygiene," he noted.

Judith Birungi, another matooke vendor, attributed the issues to political interference. "With elections approaching, politicians allow outside vendors to operate freely, undermining the technical team's efforts," she stated. "If the regulations were enforced, it could restore order and value for our fees."

Patrick Kabyemi, a former market vendor who now sells outside, explained his decision to leave: "I wasn't getting customers inside while my competitors thrived outside.

There's less pressure for rent, just a manageable vending fee, and it's easier for customers to see my products."

In response, Idi Magezi, the secretary for production in Hoima city, acknowledged the rise of external markets and the challenges faced by the enforcement team.

"We know these issues are real. With only two enforcement officers, it's difficult to maintain order across the city," Magezi explained.

"However, we plan to recruit more officers and establish trade orders within three months."

Magezi also mentioned plans to zone the market to help organize vendors more effectively.

"By zoning, we can manage vendor placement better, ensuring that all matooke sellers have adequate space, whether inside or outside the market," he added.

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