Morrison Rwakakamba

The Uganda’s Trade Order, launched in Kampala on February 19th, 2026 and extended nationally via a March 10th 2026 Ministry of Local Government circular, is a structured effort to restore urban functionality. 

The Exercise mandates relocating informal vendors from streets, pavements, and undesignated areas into gazetted markets, enforces licensing under the Trade Licensing Act, and upholds sanitation and building standards. 

The Cabinet’s April 27th 2026 reaffirmation as “non-negotiable” highlights its ambition to create orderly, productive cities.

The quest for urban order draws from antiquity. Byzantine Emperor Justinian I, after the Nika Riots of 532 AD, rebuilt Constantinople emphasizing taxis (order) and kosmos (harmony). As detailed in Procopius’ On Buildings, this involved monumental public works, regulated markets, and integration of economic life with moral governance — viewing the city as a microcosm of divine order serving the common good.

Scripture reinforces this: “Let all things be done decently and in order” (1 Corinthians 14:40). Deuteronomy 23:12-14 stresses sanitation and hygiene, while Proverbs 29:2 notes, “When the righteous are in authority, the people rejoice.” These principles frame the Trade Order as stewardship — not mere regulation, but moral responsibility for communal flourishing.

In Uganda, the informal economy contributes 54.5% of GDP and employs 88–92% of the workforce (UBOS data). Kampala’s street vending alone supports ~230,000 people. 

KCCA’s enforcement has licensed over 22,900 businesses (up from 12,536), generating UGX 5.07 billion in new licensing revenue between February 19 and April 27, 2026 — a 146% increase compared to a similar prior period. 

The foregoing expands the revenue base for infrastructure while de-cluttered streets reduce congestion and enhance business efficiency.

KCCA now targets up to UGX 200 billion in annual local revenue.

Continentally, Kigali’s formalization improved aesthetics and health indices but raised vendor costs. Accra’s drives reveal enforcement pitfalls without sufficient alternatives. Uganda must learn these lessons.

The foundational thrust of Trade Order is the Physical Planning Act 2010, which provides the legal backbone for zoning, land use, and enforcement notices to owners or occupiers. Successful rollout demands deep engagement with businesses and private landowners. Local governments must collaborate on market development, lease arrangements, and compensation where private land is repurposed. Public-private partnerships for market upgrades and transparent allocation of stalls are vital to prevent elite capture and ensure equitable access.

Properly implemented Trade Orders transform cities into engines of growth. In Kigali, Rwanda, a study of 4,647 relocated street vendors found that formal markets significantly improved living conditions (F-statistic 27.617, p=0.000) and income generation, with security in designated spaces boosting earnings. Vendors reported enhanced job security and protection from weather, supporting tourism and investment.

In Accra, Ghana, informal sector formalization efforts, though challenged, align with broader potential: shifting informal activities to formal could generate up to $125 billion annually across Africa (AfDB estimates). In Ghana, formal markets have helped stabilize revenues and reduce congestion-related losses.

In Ethiopia, gradual formalization of micro and small enterprises in Addis Ababa led to notable increases in local tax collection and business license revenues, with formalized firms showing higher credit uptake and investment levels compared to informal counterparts.

In South Korea, rigorous urban planning and market formalization during rapid industrialization supported explosive growth. Seoul’s transformation from congested spaces to ordered commercial hubs contributed to the country’s rise, with urban policies driving per capita GDP growth from under $300 in the 1960s to over $35,000 today, underpinned by efficient public spaces and formal trade.

In the USA, formal public markets like Cincinnati’s Findlay Market generated US 370.6 million dollars in total economic impact from 2021–2023 (average ~US123.5 million dollar annually), supporting 1,096 jobs and US 9.2 million dollars in taxes in 2023 alone, with spillover investments reaching US 1.1 billion dollar.

Ugandan towns stand to gain similarly: organized trade hubs foster cooperatives, bulk purchasing, value addition, and access to credit, lifting productivity in the dominant informal sector.

Implementation of Trade Order varies but shows promise. In Kampala, KCCA cleared major corridors (Luwum Street, Namirembe Road, etc.), identifying 2,520 public market spaces. Mbale, Mbarara, Rukungiri (operations from May 28, 2026), and Ibanda have pursued localized enforcement.

To achieve sustainable enforcement, authorities require meaningful empathy through thorough sensitization and transitional support — subsidized rents, micro-credit via SACCOs, and skills training. Empowerment of people in towns affected by Trade Order entails linking formalization to benefits like health insurance, cooperatives, and priority in new markets.

The other aspect is proper coordination which requires inter-ministerial task forces, vendor associations, Boda Boda associations, taxi operators associations, private sector input, and phased rollouts with clear enforcement under the Physical Planning Act. Hybrid zones for regulated vending can offer flexibility. Benefits of the order to traders and vendors need to be clearly articulated e.g. secure workspaces, finance access, and pathways to enterprise.

Beyond Trade Order, Uganda needs to envision great livable cities and towns that integrate greening (tree-lined avenues, parks), walkability (wider pavements, cycling lanes), GIS planning, waste-recycling hubs, and cultural initiatives. Regional towns like Rukungiri can adapt scaled models tied to agriculture.

Grounded in Justinian’s legacy, biblical order, and African realities, Uganda’s Trade Order — executed with empathy, empowerment, coordination, and physical planning rigor — can pioneer inclusive urban modernity and shared prosperity.

Morrison Rwakakamba, 

Coffee Farmer — Rukungiri.