Busia Authorities Shut Down Two Major Fish Companies Amidst Licensing Scandal

Busia authorities have initiated the closure of two prominent fish companies, Yalelo and Rendalli, due to alleged violations of licensing and operational regulations. The directive came from Busia Resident District Commissioner (RDC) Hajira Namagogwe during a critical meeting with local officials and fish traders.

Ms. Namagogwe stated that Yalelo had been operating for three years without a valid trading license from the Busia town authorities. Compounding the issue, Rendalli allegedly secured its license through fraudulent means, reportedly issued by an unscrupulous parish chief without proper council approval. This action contradicts a prior council resolution to cease issuing licenses to businesses operating outside the newly constructed Busia Main Market, a Shs24.5 billion government project.

The Town Clerk, Fenard Katunda Mukulu, admitted that Rendalli’s license was issued by a town agent, Feruzi Maishallah, without his knowledge. Despite Mukulu ordering the closure of both firms, they reportedly continued their operations, prompting further action.

Fish traders in the main market welcomed the RDC’s decision, expressing that the companies’ proximity to the Kenyan border had siphoned off their customers. They urged Yalelo and Rendalli to relocate their operations within the main market as per council resolutions.

However, an official from Rendalli Fish Company, David Kazoora, dismissed the closures as politically motivated, warning of a negative impact on the border fish trade. He claimed the companies supply a significant portion of the fish sold in Busia Main Market and suggested that local traders should focus on increasing production rather than engaging in “bickering.”

Mr. Kazoora indicated that the companies might consider relocating their business to Kenya if the situation does not improve, citing that the majority of their clientele are Kenyan nationals. He also stated that the companies hold a council resolution allowing them to operate in Busia Municipality and questioned the basis for the closure order.

Busia RDC Namagogwe has ordered the immediate arrest of Feruzi Maishallah, the town agent implicated in the fraudulent license issuance. The situation highlights a complex interplay of local governance, business interests, and cross-border trade dynamics in the region.

For more details, read the full report from Daily Monitor.