Traders in Kampala are rising up against a new URA container directive, which bans the use of shared containers for import tax clearance. As a result, small traders fear they will lose the financial flexibility they’ve relied on for years. Many of them import goods under a group model, managed by container leaders, who allow them to pay taxes in installments.
“This directive removes the support system that keeps us afloat,” says Moses Bagonza, a clothing trader in downtown Kampala. “Container leaders let us pay in manageable bits. URA doesn’t offer that option.”
Previously, traders could share a container and split the tax burden. However, under the new policy, each trader must use their own Tax Identification Number (TIN) to clear goods. This change, according to URA, aims to stop tax leaks and ensure proper accountability. Nevertheless, traders say the policy ignores their economic realities.
Most small-scale traders don’t import enough to fill an entire container. In fact, the Kampala City Traders Association (Kacita) estimates that only 10% of the city’s three million traders own containers. Therefore, shared containers are not just a convenience—they are a necessity.
William Kaggwa, a dealer in construction materials, acknowledges URA’s concerns. However, he believes the new rule will widen the gap between large and small businesses. “Big traders like me will survive. Smaller ones won’t,” he explains. “They depend entirely on container sharing.”
Moreover, Kacita believes the directive was issued without any meaningful consultation. According to spokesperson Thadeus Musoke, URA failed to engage stakeholders before enforcing the new rule. “We need fair discussions on how to handle shared imports,” he argues. “Without that, this rule threatens thousands of livelihoods.”
The issue reminds many of the chaos in 2023 during the Electronic Fiscal Receipting and Invoicing System (EFRIS) protests. At the time, traders closed shops citywide, claiming URA had not properly educated them about the system. As a result of public pressure, URA suspended the rollout temporarily.
“This feels like EFRIS all over again,” a trader in Kikuubo remarks. “URA didn’t listen last time. They’re still not listening now.”
In contrast, some government officials view the directive as a step toward a fairer system. Former URA Commissioner and current Member of Parliament Dickson Kateshumba supports the policy’s intent. He says it promotes traceability and reduces tax evasion. However, he also agrees the implementation should be more inclusive. “Good ideas fail when they ignore the people affected,” he adds.
To avoid more unrest, Kacita has proposed a joint taskforce. Their goal is to find flexible alternatives, such as staggered tax payments, simplified clearance procedures, and better education for small traders. Furthermore, analysts warn that failure to act could spark new protests and disrupt business in the capital once again.
Ultimately, URA now holds the responsibility to address these concerns. The message from traders is loud and clear: reforms must be practical and fair. Otherwise, tax compliance may come at the cost of survival.
