Kitgum traders question legality of licence fee hike

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Traders in Kitgum Municipality have rejected steep increases in trading licence fees, accusing municipal authorities of bypassing legal procedures and imposing taxes without consultation.

The dispute, which began on February 10 this year, escalated this week, prompting intervention from Salim Saleh, the chief coordinator of Operation Wealth Creation.

A crisis meeting held on March 19, 2026, and led by his advisor, Ogenga Otunnu, brought together trader representatives, political leaders and technical officials in a bid to ease tensions.

Traders cite illegal process

Traders, led by the Kitgum Municipal Traders Union executive leaders, say the revised fees, some rising by over 100%, were introduced without due process.

Union secretary Richard Oloya said the municipality failed to conduct assessments, allow public scrutiny, or provide a legally required objection period.

“We are willing to pay taxes, but the process must be transparent and based on proper assessment,” Oloya said.

The traders argue that the council violated provisions under the Constitution, the Tax Procedures Code Act and the Local Government Act, which require public notice, assessment and avenues for objection before new taxes are enforced.

They also allege intimidation, illegal cash collections and arbitrary closure of shops by revenue collectors.

Authorities defend new system

Kitgum municipal town clerk, Monday Joseph Bagonza, defended the new charges, saying they are based on the Integrated Revenue Administration System, which standardises taxes across the country.

Bagonza said previous underpayment by some traders may have created the impression of sudden increases.

He added that the municipality plans to strengthen taxpayer education, verify business licensing and eliminate cash transactions to curb corruption.

Mayor proposes relief

In response to the concerns, mayor Richard Okwera Ojara proposed a reduction in the overall tax burden.

The new proposal would lower total fees from about sh210,000 to sh70,000, broken down into registration at sh20,000, signage at sh10,000 and waste management at sh40,000.

Revenue pressure cited

Officials say the need to raise more revenue has intensified following the demolition of the central division bus park, a key income source. The municipality is targeting sh1.7b in the current financial year, up from sh700m previously.

Dialogue ongoing

Otunnu said the meeting had yielded progress, with authorities acknowledging procedural gaps and committing to reviewing the tax structure and improving engagement.

“This is not just about taxes, but governance and trust,” he said.

Kitgum deputy resident district commissioner Walter Oyoo called for transparency and warned against harassment of taxpayers.

Both sides have expressed willingness to continue dialogue, raising hopes for a negotiated settlement to the standoff.