Kampala arcade traders close shops over rent dispute

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Business in downtown Kampala was disrupted on Thursday morning after traders operating in several city arcades shut down their shops in protest against what they describe as unfair rent demands by their landlord.

The affected traders, commonly known as the G3 group, operate in arcades including Gazaland Arcade, Galiraaya Arcade, and Grand Corner Arcade. Those on upper floors were particularly impacted, with many choosing to close in defiance of new directives issued by landlord John Kitandwe.

At the centre of the dispute is a requirement for tenants to pay rent one month in advance, an arrangement traders say deviates from their long-standing practice of paying for the current month of occupancy.

“How can you ask us to pay for a month we have not worked in?” questioned Margaret Namaganda, a salon operator at Grand Corner Arcade, reflecting widespread frustration among tenants.

Other traders, including Ismail Mugwanya, explained that their rent payments are typically built gradually from daily sales. He noted that setting aside between sh20,000 and sh50,000 daily allows them to meet monthly rent obligations. However, paying in advance, he said, would force traders to divert capital away from stock, undermining their ability to sustain their businesses.

Tensions escalated after management under Marian Agencies reportedly enforced the directive by disconnecting electricity to some shops and locking others with padlocks, even for tenants who had already paid March rent.

This is not the first time such action has been taken. Traders say this marks the third shop closure since last year, noting that each previous strike led to negotiations that were never implemented by the landlord, ultimately triggering repeated protests.

The traders, led by G3 chairperson Robert Kabushenga, say they have exhausted multiple channels for redress, including reaching out to government offices and commissions, without success. They are now calling on the President to intervene, arguing that continued enforcement of the directive is crippling their livelihoods.

The standoff highlights ongoing tensions between landlords and small-scale traders in Kampala’s busy commercial hubs, with traders vowing to keep their shops closed until a lasting resolution is reached.