Business 9 June 2026 Daily Monitor (Uganda)
Trade Order Enforcement Sparks Rental Fee Surge Across Uganda
The stringent enforcement of a trade order, aimed at relocating vendors from streets and undesignated areas, has unexpectedly driven up rental costs for commercial and residential spaces nationwide. Displaced traders are now scrambling for limited formal spaces, leading landlords to significantly increase fees. Source: https://www.monitor.co.ug/uganda/special-reports/how-trade-order-enforcement-has-caused-surge-in-rental-fees-5489880
Urban centers across Uganda are experiencing a sharp increase in rental fees for both commercial and residential properties, a direct consequence of the ongoing enforcement of a government trade order. This order mandates the relocation of traders operating on streets, pavements, and other informal spaces into designated gazetted areas.
The influx of displaced traders seeking formal workspaces has created a surge in demand, particularly in municipalities and regional cities. Many previously less desirable rental properties are now fully occupied, and acquiring space has become a significant challenge for business owners.
In areas like Mbarara City and Ibanda Municipality, rental prices for commercial spaces have nearly doubled. For instance, rents on Main Street in Ibanda have risen from Shs700,000-Shs1.5 million to Shs1 million-Shs2 million per month. Similarly, residential single rooms, once renting for Shs150,000, now command Shs250,000.
Landlords are reportedly exploiting the heightened demand, with some acknowledging that abrupt demolitions necessitated renovations and financial adjustments, forcing them to raise rents. In Mbarara, some residential buildings are being converted into commercial rentals to meet the demand. Traders who cannot afford the increased rates are considering relocating to the outskirts of city centers.
Local authorities acknowledge the issue but state they have limited control over private rental agreements, advising traders to form associations to negotiate terms or explore more affordable locations. The enforcement is also linked to strengthening local revenue collection by bringing businesses into formal, taxable structures.
This situation highlights the strain on Uganda’s urban infrastructure and the economic ripple effects of regulatory enforcement on small businesses and residents. The need for more planned commercial spaces and accessible rental markets is evident as the country continues to grapple with urbanization and informal trade dynamics.
Source: Daily Monitor (Uganda)