Smart cities drive: Mbarara and Mbale issue ultimatums to street vendors

Mbarara Town Clerk Justine Barekye said the move is intended to restore “street order” and ensure fairness for tax-compliant businesses

MBARARA CITY, February 27, 2026 — Leaders in Mbarara, and Mbarara cities have issued fresh ultimatums to street vendors as part of a broader push to restore order and protect licensed businesses in the two cities.

In Mbarara, authorities have given street vendors, operators of illegal boda boda stages, and unauthorised taxi drivers two months to vacate the streets. The directive, issued last week, mirrors recent enforcement efforts in Kampala, where street vendors have banned from selling their merchandise on streets.

Mbarara Town Clerk Justine Barekye said the move is intended to restore “street order” and ensure fairness for tax-compliant businesses. She warned that vendors displaced from Kampala should not expect to find refuge in Mbarara.

“Vendors who operate on the streets, we as Mbarara City don’t want them there,” Barekye said. “I am aware that in Kampala some were chased and they might flood Mbarara, but even here we are prepared not to allow them.”

She argued that roadside trading disadvantages shop owners who pay licence fees, property tax, local service tax and ground rent. “When vendors sell on the streets, the shop owner who pays all these taxes fails,” she said. “For us, even the vendors along the roadside, we are going to remove them.”

Barekye also described unregulated street trade as a security risk, saying criminals can blend more easily among informal traders than in registered premises. “They are a security threat because wrongdoers hide among them,” she said. “When someone is in a shop, they can be easily identified, but on the street they are not recognised.”

She urged traders to relocate to gazetted markets such as Nyamityobora and Mbarara Central Market, adding that enforcement officers will act once the two-month grace period expires. “If you want space, come to us; we will get you space in the market,” she said.

Mbarara City Speaker Bonny Tashobya Karutsya said the crackdown forms part of a wider national directive.

“This is a directive going to all cities; it’s not only for Kampala alone. We are telling people to prepare,” he said.

Tashobya cited a recent incident in which a foreign national was arrested for vending household items on the street, describing it as evidence of the city’s zero-tolerance stance. He maintained that all traders, local or foreign, should operate from formal premises.

He added that an earlier grace period, granted to allow parents to pay school fees, had expired. “People should rent spaces but not trade from the streets,” he said, warning that the city risks losing revenue when licensed shopkeepers close due to competition from untaxed vendors.

Mixed reactions

The directive has drawn mixed reactions from residents and traders.

Rodgers Betunga, an agro-chemical dealer in Mbarara, welcomed the move, citing unfair competition and health concerns. He alleged that some vendors sell counterfeit or expired products, undermining established businesses.

“Let them get proper spaces like we do and have addresses, rather than loitering on the streets selling fake products,” he said. “We pay rent and licences, while they move from house to house without paying tax.”

However, some small-scale traders fear losing their livelihoods. Doreen Asiimwe, who sells handkerchiefs along the Mbarara–Kabale road, said the order threatens her survival.

“I worked as a waitress and saved Shs500,000 to start this business,” she said. “If the council chases us, the only remaining solution is to return to the village because I won’t manage to survive in Mbarara.”

Emmanuel Muhumuza, chairman of Mbarara Central Market, supported the policy but cautioned against abrupt enforcement.

“If you chase these people without organising where they should go, you will cause insecurity because they will start looking for survival at night,” he warned.

Barekye said the city’s technical team would prioritise rehabilitating markets such as Nyamityobora to accommodate displaced traders. Those who defy the directive after the two-month deadline, she added, will face action in the city council courts.

Mbale issues five-day deadline

Elsewhere, Mbale City Council has announced a five-day ultimatum, effective March 2, 2026, to enforce a new trade order and restore order in the city.

Republic Street in Mbale City. Internet photo.

The directive targets street vendors, bus and taxi operators, street children, and boda boda riders operating in unauthorised spaces.

Authorities say vendors have been conducting business on pedestrian walkways and along roads, displaying fresh produce, clothes and household goods at illegal taxi stages, causing congestion and raising safety concerns.

Mbale City Town Clerk Assy Abirebe announced the measures during a press conference at the City Chambers on Wednesday evening.

Abirebe warned that vendors found operating after the deadline will be arrested, their goods impounded, and charges filed in court.

“A city can only function when there is order, and it is our responsibility as Mbale City leaders to ensure that order is maintained,” he said.

He urged traders to comply voluntarily. “Traders should move before being moved. We want all vendors off the streets, and those who resist leaving peacefully will face enforcement by police,” he added.

Illegal roadside taxi stages have also been banned. Vehicles operating outside authorised areas will be impounded, and boda boda riders must park only at gazetted stages.

Industrial City Division Town Clerk Geoffrey Mugisha said congestion has worsened as pedestrians are forced onto busy roads due to blocked walkways. He noted that goods displayed along streets obstruct building entrances, hurting licensed traders who pay rent, utilities and taxes but struggle to attract customers.

“We shall not allow any taxi or bus to load or offload passengers on the streets because we have already allocated designated places for them to operate from, such as gazetted parks,” he said.

Deputy Resident City Commissioner Hamza Banja said security agencies would lead the enforcement exercise in coordination with police.

“We agreed in our security meetings that the city must regain order from the current disorder caused by vendors and motorists,” he said, assuring the public that authorities are prepared to enforce compliance.

Additional reporting by Agencies

https://thecooperator.news/mbarara-city-youth-sacco-defies-odds-to-reach-shs-1-4-billion-in-share-capital/

Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news

Exit mobile version