Business 27 April 2026 Daily Monitor (Uganda)
FSME Boss Urges Shared Workspaces for Displaced Small Businesses
A survey by the Federation of Small and Medium-Sized Enterprises-Uganda reveals that 93 percent of over 13,000 MSMEs have no workplace after government evictions from roadside spots. The group calls for shared workspaces and better consultations to mitigate job losses and revenue impacts. Source: https://www.monitor.co.ug/uganda/business/prosper/walugembe-develop-workspaces-for-small-businesses-5437898
The Ugandan government ordered street vendors to leave illegal trading areas starting February 19, 2026, following an announcement on February 5. Local officials were tasked with enforcement, but critics argue the process ignored key procedures.
Francis Walugembe, executive director of the Federation of Small and Medium-Sized Enterprises-Uganda (FSME), highlighted enforcement flaws in a BD Life interview. He noted that while actions align with laws like the Trade Licensing Act and Kampala Capital City Act, they lacked proper sensitization and stakeholder consultations, causing widespread livelihood disruptions.
A rapid FSME survey of 13,567 businesses found 93 percent unable to operate after roadside evictions. About 88 percent lost stalls or kiosks to destruction or confiscation, 15 percent saw total business collapse, and 80 percent reported customer loss due to relocation.
Additionally, 68 percent lack permanent workspaces, as designated markets often charge high fees for unavailable stalls. The moves have sparked financial losses, psychological distress, and fears of rising insecurity from youth unemployment.
Walugembe criticized the failure to distinguish licensed from illegal operations and poor demolition practices under the Building Control (Amendment) Act, 2026. He warned of revenue hits for local councils and the Uganda Revenue Authority.
Recommendations include halting demolitions temporarily, conducting awareness campaigns, developing trade strategies with stakeholders, and creating shared workspaces beyond markets for MSMEs to grow into independent facilities.
Source: Daily Monitor (Uganda)