Urban leaders urge govt bailout for market vendors trapped by lenders

Mayors and town council leaders have asked the government to find ways of bailing market vendors out of the hands of money lenders, saying their activities have undermined efforts to fight poverty.

On behalf of the urban authorities, Moroto Municipality mayor Mohamed Ismail, also known as Hodari, said several municipalities that received new markets are struggling because vendors are finding it difficult to operate under pressure from money lenders.

“As heads of these urban areas, I want to say the government should find some money to bail the vendors from the money lenders,” Hodari said, adding that if they do not access soft loans from government banks, time and resources spent building the markets will have been wasted.

He further noted that commercial banks are the main lenders to the business community, but interest rates of between 15 and 20 percent are too high for market vendors.

“Government should contribute sh500 million as revolving funds for the vendors,” Hodari noted.

He was speaking on February 27, 2026, during the 14th Annual Urban Leaders’ Forum, which brought together city and municipality mayors, town councils and divisions from across the country.

The meeting, held at Leslona Hotel in Moroto, coincided with the 22nd Annual General Assembly of the Alliance of Mayors’ Initiative for Community Action on HIV and AIDS, a network of local governments coordinating responses, policy and action on the pandemic.

Hodari explained that vendors could form groups and access the funds as a revolving facility at very low interest rates.

“Let’s not be leaders who are easily compromised,” he said, adding that he has left a legacy in Moroto Municipality.

He congratulated the security agencies for restoring peace in Karamoja, saying residents are now actively engaged in business.

“The sub-region has now taken off after five years characterised by conflict,” Hodari noted.

Eugene Ssemakula

Speaking at the same event, AMICAAL country director Gerald Ssemakula Eugene said the forum aims to create awareness about the roles of urban leaders.

He described mayors and town clerks as champions of locally driven development in urban communities.

“The forum also strengthens the capacity of urban leaders in issues governance," Ssemakula stated, adding that the mayors are stimulants of local economic development (LED), an issue that focuses on the parish development model among other initiatives.

The forum was held under the theme, “Mayors on the frontline of urban development- championing locally driven solutions through the mayor led-approach.”

The regional coordinator of the Alliance of Mayors for Northern Uganda, Innocent Godfrey Onega, said it is important to recognise that urban centres face numerous challenges.

He noted that most urban areas are constrained by limited resources but can perform better with improved resource envelopes.

Onega reminded local governments to prioritise budgeting for the environment, noting that it goes hand in hand with public health.