MBALE - State Minister for Local Government Balaam Barugahara has ordered the arrest and interdiction of top Mbale city and division officials over mismanagement of market funds, mismanagement of allocation of stalls, double taxation, and massive revenue leakages in Mbale Central Market.
Police arrested the Town Clerk of Mbale City, Assy Abirebe Tumwesigire, and that of Industrial Division, Godfrey Mugisa, plus the Mbale Central Market Master, only identified as Ojambo, following a fiery public meeting with aggrieved vendors outside the market facility on August 16.
Police officers led by the Mbale Regional Police Commander (RPC), Peter Twala, and the District Police Commander (DPC), Ocaya, whisked Ojambo away in a police pick-up truck. Mugisa was rescued from an angry mob of traders and whisked away on a police-escorted boda-boda amid cheers of "Balaam Oye!" from the crowd.
Vendor grievances
The traders accused the division officials of collaborating with illegal market "landlords" who sublet government lock-ups and stalls at exorbitant rates of up to sh130,000 per month. They also raised concerns over double taxation through illegal loading and unloading fees, uncollected garbage, broken plumbing, sewage overflows, a lack of backup electricity, and rising insecurity.
“Traders collect sh34m from this market, but central government accounts show the division only remitted sh3.4m last month, claiming a system failure. That is a 90% loss, and we cannot tolerate it,” Barugahara said, adding that in some past months between sh10m and sh14m had been remitted.
Traders also questioned the shift from the Integrated Revenue Administration System (IRAS) to the Interswitch platform, suspecting revenue leakages.
They said duplicate lock-up verification and conflicting payment codes through Interswitch have caused disputes between traders of Mbale Central Market and Mbale City Authorities, and this had affected collections.
Directives issued
Addressing the crowd, Barugahara announced a series of administrative actions to restore order; he ordered the immediate interdiction of the Town Clerk and Market Master, directing the ministry to deploy an interim Town Clerk and Market Master to stabilise operations.
The Minister outlawed middleman landlords in government markets, returning all illegally confiscated stalls back to actual vendors. He also abolished all loading and unloading charges with immediate effect.
He further ordered vendors to halt payment of market fees as investigations into alleged revenue mismanagement get underway.

Local Government Minister Balaam Barugahara addressing Mbale Central Market traders in Mbale on August 16th. (Credit: Donald Kiirya)
Barugahara also directed the State House Anti-Corruption Unit (SHACU) alongside local detectives to conduct a full audit into market collections, lock-up and stall allocations, and unverified funds, including sh125m annually generated from mask trading.
On utility repairs, the Minister ordered the City Council and Industrial Division authorities to work with National Water and Sewerage Corporation (NWSC) to unblock the drainage system and restore water supply within two weeks. User fees for public sanitation facilities were capped at sh200.
“I direct all street vendors operating outside the market premises to relocate inside immediately,” the Minister ordered.
Barugahara cautioned that anyone found culpable for misappropriating public funds would be prosecuted, promising to return to Mbale to inspect progress on the key directives.
In his report on Tuesday to Parliament, Barugahara said his anti-corruption tour in 12 districts and cities has resulted in the arrest of 94 people and court appearance of 19 persons over cases involving an estimated sh14.7b.
The campaign moved to Bukwo, Kwen and Kapchorwa districts in the Sebei sub-region.