Kampala traders warn that delays in cargo clearance are tying up working capital, disrupting restocking and threatening sales ahead of Christmas, with KACITA threatening protests unless the Uganda Revenue Authority resolves the bottlenecks.
Traders have warned of mounting business losses ahead of the festive season, accusing the Uganda Revenue Authority (URA) of delaying cargo clearance at key entry points and threatening protests if the bottlenecks are not resolved.
The traders, represented by the Kampala City Traders Association (KACITA), say the delays are tying up working capital, disrupting supply chains and making it difficult for businesses to restock ahead of one of the busiest trading periods of the year.
KACITA chairman Issa Ssekito said the delays were putting traders under growing financial pressure at a time when businesses should be preparing for increased consumer demand during Christmas and New Year.
“We want the Uganda Revenue Authority to know that people are much depleted, they are losing out of capital and we are nearing the end of the year season,” Ssekito said.
The dispute raises concerns about the potential impact on retail prices, business liquidity and traders' ability to meet loan obligations if imported merchandise fails to reach the market in time.
For traders who depend on imported goods, prolonged clearance delays can mean lost sales, additional storage and transport costs, and cash shortages as money remains tied up in merchandise that cannot be sold.
Consumers could also bear some of the costs if businesses pass the additional expenses on through higher prices, particularly during the festive season when household spending typically increases.
Ssekito said the disruption had also affected regional cargo movement, claiming that passenger and cargo buses in Nairobi had been stopped from loading goods destined for Uganda following recent directives by Ugandan authorities.
The disruption threatens to complicate cross-border trade and increase uncertainty for importers who rely on regional transport networks to replenish their stocks.
At the centre of the dispute is the House Bill of Lading, a document used by freight forwarders to identify and track individual shipments within consolidated cargo.
URA has maintained that enforcing the requirement is intended to improve cargo clearance and curb illicit trade. However, some importers say its implementation has created confusion and delays rather than the efficiency they expected.
Importer Ssekalo Baker blamed the authority for failing to implement the new arrangement effectively and questioned the clarity of the tax policy governing the process.
“The problem is with URA’s failure to implement what they introduced to streamline cargo clearance as well as the lack of a tax policy,” Baker said.
Ssekito said traders had expected the introduction of the House Bill of Lading to improve clearance procedures but remained dissatisfied with the results.
“We were promised that things would be much improved when we join the House Bill of Lading, a matter that is still questionable,” he said.
The disagreement highlights the challenge of balancing tighter customs controls with the need to keep legitimate trade moving. While measures to improve cargo tracking and prevent tax evasion can protect government revenue, delays in implementation risk imposing additional costs on compliant businesses.
For small and medium-sized traders, whose operations often depend on rapidly turning over stock and borrowed working capital, prolonged disruptions can have consequences beyond immediate lost sales.
Businesses that fail to sell their merchandise during the festive rush could be left with unsold stock, reduced cash flow and difficulties repaying loans, potentially undermining their ability to restock in the new year.
The traders' threat of protests adds pressure on URA to address their concerns before delays further disrupt seasonal trade. However, the authority's response to the latest complaints and the specific measures it may take to ease the bottlenecks remain unclear.