Businesspeople in Busia district, eastern Uganda, are raising concerns over high taxes, which they say have driven local residents to shop in neighbouring Kenya, where goods are significantly cheaper ahead of the Christmas season.
Suleiman Benzula, chairperson of the Busia Custom Traders Association and a boutique owner along Customs road, said Ugandan traders are increasingly struggling as customers cross the border in search of lower prices.
According to Benzula, business in Busia town slows dramatically on Mondays and Thursdays, which coincide with major open market days across the border in Kenya.
“Previously, we could make sales of up to Shs 840,000 a week, but nowadays weekly sales are between Shs 160,000 and Shs 200,000,” Benzula said.
He urged fellow traders to explore partnerships with Kenyan counterparts, arguing that operating across the border may be more viable than struggling in a highly taxed local market with dwindling customers.
A price comparison shows a significant disparity between Ugandan and Kenyan markets. Adult shoes in Busia’s Ugandan markets retail between Shs 30,000 and Shs 50,000, while similar footwear in Kenyan markets costs between Kshs 535 (about Shs 15,000) and Kshs 1,250 (about Shs 35,000).
Children’s shoes sell locally for between Shs 15,000 and Shs 32,000, compared to Kshs 250 (approximately Shs 7,000) to Kshs 893 (approximately Shs 25,000) in Kenya. Clothing prices follow a similar trend, with garments generally cheaper across the border.
The price advantage has drawn Christmas shoppers not only from Busia, but also from neighbouring districts, including Namayingo, Iganga, Bugiri, Tororo, and parts of Butaleja. Juliet Adikinyi, a resident of Busia Municipality, said many families plan for Christmas early by saving throughout the year, but are now choosing to spend their money in Kenya to stretch their budgets further.
“We even combine our savings so that one person crosses to Kenya to buy shoes and clothes for several families,” she said.
Another resident, Stephen Ojuku, said he spent Shs 100,000 on Monday in the Kenyan market to shop for his family of five and plans to return to buy shoes, citing lower prices.
Jennifer Kagoda, a resident of Namayemba in Bugiri district, said she is willing to spend less than Shs 10,000 on transport to reach the Kenyan market, noting that the savings on clothing and footwear more than compensate for the travel costs.
Traders in Busia say that unless taxes are reviewed or incentives introduced, local businesses risk losing even more customers to cross-border competition during the festive season.
Extortionate taxes that are then enjoyed by the minority at the expense of the Country. Its very sad.
I am not sure if goods in Kenya are cheaper than those in Uganda. Yes, some items might be cheaper but not all of them. I know quite a good number of Kenyans who do their shopping in Uganda – car spare parts, curtains, clothes etc – and some take the items for sale in Kenya. Even fuel is cheaper in Uganda than in Kenya.
A close Kenyan friend was recently in Kampala. He went on a shopping spree and bought several items – curtains, clothes, shoes, etc. He ended up with excess luggage and had to leave some of them with me to be sent to Nairobi by bus. The price, quality and quantity of food in Uganda surprised him even the more – according to him, they are way better than those in Kenya. Most of Uganda’s food is still organic; the exact opposite is true of Kenyan food. To improve yields, Kenyans pump a lot of chemicals into their crops and animals, and are quite advanced in genetic modification of crops and animals.
Indeed, taxes and quality of products are major determinants of prices of goods, but it is also human nature to shop around.
This is not a good thing, as it accelerates population mobility and promotes business exchanges. When Kenyan businessmen earn more money, they also come to Uganda to consume and promote local business development
And the beat goes on. Just like that. Forty years of steady progress that runs backwards. Now unless we deal with this problem called Museveni, the country is in an abyss.
Uhuru, thanks.
Ugandeans MUST UNITE to stop Rwandese Museveni, if they want to get back the real brotherly, sisterly, neighbourly…relations they had with Kenya before 1986!
Ugandans, please, time to say NO to the tribalistic system & UNITY to stop Rwandese Museveni is overdue & NOW is not too late for you to have a beginning to prtecting yourselves, your land…thus join in protecting climate, especially as Agriculture is life saving for Ugandans & they won’t live without it!
Where is that just ONE National/Common Leader so so needed to call for an end to the tribalistic system then to UNITY, the only power needed to stop Rwandese Museveni without war that will further destroy Ugandans & for no reason?
Why will Rwandese Museveni be assured, protected for 45 years with next useless fake presidential election he has already won?
Kaku James, agreed!
Reason Ugandans MUST say NO to the tribalistic system & UNITE, to stop Rwandese Museveni, then form the kind of governance they want or nothing will change but things will get worse for them!
Rwandese Museveni got what he fought for, is this so for powerless tribally divided ruled Ugandans, reason they will ensure he stays on protected with fake elections for 45 years+++++?
Until Ugandans become ONE PEOPLE with Common/National goal under just ONE of them, developed world that understood the situation finally after working hand in hand with Museveni for +20 years, will watch in silence – it’s tribally divided Ugandans who have the power to have who they want but as it is, they are preparing to keep Rwandese Museveni on with next fake elections!
Willis King, thanks.
(Now unless we deal with this problem called Museveni, the country is in an abyss.)
Just No to the tribalistic system he so so cleaverly put in place, then UNITY with just ONE Ugandan from a tribal land, are all that are needed, if Museveni is to be stopped!
The POWER needed lies in the hands of Ugandans, but only in UNITY to block & show Museveni way out!