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KAMPALA – Government has temporarily suspended nationwide trade order operations pending further consultations, following sustained outcry from traders over demolitions of kiosks and makeshift structures in urban centres.
The halt was communicated to Parliament on April 23, 2026, by the Minister of State for Industry, weeks after the Federation of Small and Medium Enterprises (FSME) petitioned government over the conduct and impact of the enforcement exercises.
FSME has welcomed the suspension, describing it as a “timely response” to concerns raised by micro and small traders who form the backbone of Uganda’s urban economy.
The federation is now calling for a structured way forward. In a position paper released Friday, it urged government to constitute a multi-stakeholder taskforce to develop a National Trade Order Strategy with clear objectives, timelines, and safeguards for informal traders.
“The taskforce should include MSMEs, traders’ associations, market vendors, local governments, and relevant ministries,” FSME Executive Director John Walugembe said. “We must distinguish between illegal encroachment and legitimate informal trade, and provide transition mechanisms rather than punitive demolition.”
Background to the crackdown
Trade order operations were intensified in early 2026 by Kampala Capital City Authority and other urban councils to clear road reserves, drainage channels, and green spaces of unlicensed structures. A high-profile overnight operation on February 20, 2026, saw KCCA enforcement teams load debris of destroyed kiosks and makeshift stalls onto trucks across Kampala.
City authorities argued the structures obstructed pedestrian walkways, posed safety hazards, and undermined physical planning standards. However, traders and rights groups condemned the operations as abrupt, saying they led to loss of capital and stock without adequate notice or alternatives.
The operations mirrored earlier enforcement drives in 2022 and 2023, which also sparked protests. The Ministry of Trade estimated in 2024 that MSMEs contribute 90% of Uganda’s private sector employment and 75% of GDP, with over 1.1 million enterprises operating informally.
FSME’s proposals
Beyond the taskforce, FSME proposed a six-month moratorium on demolitions to allow mapping of affected traders and gazetting of designated trading zones, night markets, and MSME parks with basic utilities.
It also called for a simplified, tiered licensing regime, capping annual fees for micro-enterprises at UGX 100,000, and a Trade Order Compensation and Recovery Fund to help traders restock after losses.
“All future operations must be preceded by at least 90 days’ written notice, public sensitization, and the presence of local leaders and human rights observers,” the position paper states. “Evictions at night and confiscation without inventory must cease.”
The federation said it remains committed to orderly urban development but insisted that “trade order must not become disorder for the poor.”
It has requested an urgent meeting with the Ministry of Trade, KCCA, and the Prime Minister’s Office within 30 days to operationalize the recommendations.
The Ministry of Trade had not responded to requests for comment by press time.
Related
, https://pmldaily.com/news/2026/04/fsmes-welcome-govt-suspension-of-nationwide-trade-order-operations-push-for-inclusive-strategy.html
