Small Businesses Struggle as Rent, Taxes Rise in Urban Centers

Kampala, Uganda

Small and medium-sized enterprises (SMEs) across Uganda’s major towns are facing renewed pressure as commercial rent hikes and local taxes erode profitability, traders say.

Business owners in Kampala, Mukono, and Wakiso report rent increases of up to 30% over the past year, driven by property speculation and post-pandemic market adjustments.

Economists warn that unchecked cost escalation could push more businesses into informality, reduce employment, and slow urban economic recovery.

Government officials say efforts are underway to streamline local taxation and expand access to affordable credit, but traders remain skeptical.

Why It Matters

SMEs employ the majority of Uganda’s urban workforce. Their survival directly affects jobs, innovation, and household incomes.

What to Watch

Local government tax policy changes

Commercial real estate trends

SME access to financing