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
