Merchants in Kampala have accused the Uganda Revenue Authority of causing dangerous delays in cargo clearance at entry points, warning they face mounting losses as the festive season approaches. The Kampala City Traders Association said the hold-ups are freezing working capital, breaking supply chains and preventing businesses from restocking before Christmas and New Year, traditionally the busiest trading period of the year. Association chairman Issa Ssekito said traders were under growing financial strain. "People are much depleted, they are losing out of capital and we are nearing the end of the year season," he said.
The delays threaten retail prices, business liquidity and traders' ability to repay loans if imported goods do not reach shops in time. Businesses may face lost sales, extra storage and transport costs, and cash shortages while money sits in unsold merchandise. Consumers could also pay more if retailers pass these costs on through higher prices during peak festive spending. The disruption has also affected regional cargo movement, with passenger and cargo buses in Nairobi reportedly prevented from loading goods for Uganda following recent directives from Ugandan authorities.
The dispute centres on the House Bill of Lading, a document freight forwarders use to track individual shipments in consolidated cargo. The Uganda Revenue Authority says the requirement improves clearance and stops illicit trade, but importers say it has created confusion and delays instead. Importer Ssekalo Baker blamed the authority's poor implementation and said the tax policy governing the process lacked clarity. Ssekito said traders expected better results when the system was introduced but remained dissatisfied.
The disagreement reflects the challenge of balancing tighter customs controls with keeping legitimate trade flowing. For small and medium-sized traders who depend on fast stock turnover and borrowed working capital, prolonged disruptions risk leaving them with unsold inventory, reduced cash flow and loan repayment difficulties. The traders have threatened protests, adding pressure on the authority to ease the bottlenecks, though its response remains unclear.