Last week I was amazed by the Kampala City Traders’ Association (KACITA) move to close shops.
Kacita as an “umbrella” organization for traders in Uganda has always presented itself with lots of contradictions.
About two years ago, Kacita called for the closure of shops over the increasing dollar rate against the local shilling and demanded that government should have a fixed Dollar rate, and interest rate. The shops were closed for over one week and nothing came out of the industrial action!
A close look at Kacita’s industrial actions indicate that they have never yielded to the benefit of the traders, and in 2013 despite meeting the Head of State they just came back and told the traders to re-open their shops.
Last week, Kacita coerced traders (tenants) through their landlords to close businesses citing huge imports taxes, and Uganda Revenue Authority’s stance to arrest and imprison tax evaders, under declaration and selective importation of rice from Tanzania.
But analyzing Kacita’s concerns, it’s like legitimizing illegalities like tax evasion. Kacita’s actions are guided by the rich businessmen and owners of buildings who they ask to close without the consent of the sitting tenants who pay huge sums of money in form of monthly rent.
The tenants have a wide range of issues with the landlords (more so when it comes to hiking of monthly rent charges) but Kacita keeps a deaf ear and never attends to traders. Key among the impediments abnormal rent, exorbitant and exaggerated power rates per shop which range from monthly Shs50,000 to Shs200,000 per month charging tenants money to use the loos/washrooms yet they pay rent and refuse fee, on top of paying the trading license.
Kacita has failed to address business disputes which are widespread especially downtown and many upcoming traders have been kicked out businesses because the so called container leaders cheat and steal items in the process of clearing imports with the tax body.
All these issues are ignored by Kacita leadership who act in a manner which leaves a lot to be desired and one would keep wondering the level of education. For instance during the draft making of the financial year 2015-2016 budget what was there input that was not addressed? And this brings the question of the timing. Is it about catching the eye and attention of the president since it has been the practice?
In my opinion, the timing is wrong given that after suffering the earlier period of the year with low sales, traders need to enjoy and utilize every hour and day as they catch up with the festive season; closing shops will the last item on the agenda of a serious trade organization.
In advocacy and lobbying timing, issue articulation and the nature of the negotiation are core, where the parties walk out with a win-win solution but Kacita is always on the losing side this raises issues about Kacita’s bargaining skills, strategies, and sustainability of the industrial action.
The closure of the shops should be done voluntarily and at the trader’s discretion. There are many traders that do not subscribe to Kacita but keep falling victims of the Association’s poorly conceived industrial actions. The association must demonstrate that they can deliver on their promises and can live on beyond the founders. Key to this should be avoidance of politicking and address the technicalities in the trade and business sector, grow members and also promote exportation of Uganda products.
