The Federation of Small and Medium Enterprises (SMEs) has endorsed the government’s decision to halt enforcement of the disputed trade order, while sharply criticising how the operation was carried out and urging a complete reset through dialogue and policy clarity.
Speaking to the media, Executive Director John Kakungulu Walugembe commended the government, particularly President Yoweri Kaguta Museveni, for suspending the exercise.
“The Federation of small and medium-sized enterprises would like to express its appreciation to government, especially His Excellency the President, for halting the trade order operations,” Walugembe said.
The enforcement campaign, which had been rolled out in parts of Kampala and other urban centres, sought to clear traders from road reserves, walkways, and other undesignated spaces in an effort to restore order in cities.
However, the operation quickly drew backlash from traders and business groups, who accused enforcement teams of brutality, property destruction, and overreach.
While acknowledging that the objective of organised urban trade was valid, Walugembe said the implementation lacked clarity and proper planning.
“Although the Federation was supportive of the attempt to have orderly trade, we felt that the operation was not well considered. The objectives weren’t clear. The timing was wrong, and in many instances, the enforcement teams went beyond their mandate,” he said.
He pointed to widespread reports of destroyed merchandise and confiscated business assets, warning that such actions had severe economic and psychological consequences for small-scale entrepreneurs.
“People’s properties were destroyed, people’s business assets were confiscated… creating psychological distress to them,” he added.
The Federation is now proposing a comprehensive review process anchored on inclusive engagement. Central to this proposal is the formation of a multi-stakeholder committee to guide future implementation.
“Government should start by setting up a multi-stakeholder committee… it should include the Ministry of Finance, the Ministry of Trade, the Ministry of Works, the Ministry of Gender, local authorities, and representatives of traders and SMEs,” Walugembe said.
He emphasised that the committee must first define clear and measurable objectives before any enforcement resumes.
“They should agree on a strategy and the objectives, which should be clear and SMART—what we want to achieve within what timeframe,” he said.
The Federation is also calling for nationwide consultations to ensure traders are actively involved in shaping solutions and identifying alternative workspaces.
“This should be conducted countrywide, so that traders get to air their views and jointly with local authorities identify alternative spaces,” he noted.
A major concern raised by the SMEs body is the lack of viable relocation options for informal workers. Walugembe cautioned against a one-size-fits-all approach of relocating traders to markets.
“We shouldn’t just say everyone should go to markets. Not everyone can go to markets… markets cannot accommodate mechanics, carpenters, or metal fabricators,” he said.
Instead, he urged government to designate and formally gazette additional workspaces, including unused public land and selected road reserves, while allowing a reasonable transition period for affected traders.
“Government should give them time to move… maybe six months or four months… not a blanket timeframe,” he said.
On enforcement methods, the Federation drew a firm line against the destruction or confiscation of property, arguing that such actions are unlawful and counterproductive.
“Enforcement should not involve destruction of property… should not entail confiscation of assets. Don’t confiscate my bananas… what crime has it committed?” Walugembe said.
He proposed that authorities instead rely on lawful compliance mechanisms, including relocation directives and court processes.
“Leave me with my assets, take me to court, and let the law take its course,” he added.
At the same time, the Federation cautioned traders against exploiting the suspension to return to unauthorized spaces, warning that indiscipline could trigger stricter enforcement in the future.
“Vendors should not use this breathing space as an opportunity for misbehavior… this kind of indiscipline would create justification for excessive force next time,” he said.
On the question of compensation for losses incurred during the crackdown, Walugembe urged restraint, noting that discussions with government are still ongoing.
“It will be premature to talk about compensation… let us give an opportunity for dialogue so that we can find a solution that works for all,” he said.
He added that local government structures already have the capacity to assess damages should compensation become necessary.
Ultimately, the Federation is advocating for a balanced approach that protects livelihoods while ensuring order in urban spaces.
“We should avoid extremists… let’s find the middle ground,” Walugembe said.
With consultations expected to continue in the coming months, the SMEs Federation maintains that any future trade order must be guided by inclusivity, clarity, and respect for the rights and livelihoods of Uganda’s small business community.
