In a bold step towards transforming informal trade into structured economic activity, Kampala Capital City Authority (KCCA) has embarked on a campaign to formalise urban markets as a way to boost local revenue, enhance order, and improve livelihoods for small-scale traders.
This initiative, implemented during the 2024/2025 financial year, reflects a growing shift in how urban economies like Kampala’s are being restructured to support inclusive economic growth and better service delivery.
The formalisation drive has so far seen major achievements, most notably the completion and commissioning of Busega Market, which is now home to over 2,000 vendors.
The market is already operational, with vendors registered and zoned according to the goods and services they sell.
This effort is aimed at restoring order and ensuring efficient management of trading spaces long a challenge in Kampala’s informal market scene.
Work is also progressing on other markets such as Kiseka and Kitintale (Phase II), with roofing already completed.
The city authority plans to construct at least two modern markets per division in line with directives from the central government.
These markets will come equipped with better infrastructure, sanitation, and operational management systems, thereby enhancing the overall trading environment.
At the heart of this transformation is vendor registration. KCCA has already registered traders in 16 of the 17 public markets under its management, following the “one stall, one vendor” principle.
In five of these markets, zoning has been done by trade departments, while elections of department heads have been successfully conducted in Busega Market and the City Abattoir.
These reforms are part of a wider strategy to create structured, tax-compliant, and economically productive urban markets.
Formalisation allows for better planning, improved tax collection, and accountability, which ultimately supports both local government revenue and public service delivery.
The economic benefits extend beyond government coffers. With formal stalls and recognised operating rights, vendors now have increased access to support services, financing opportunities, and business development programs.
Market organisation has already improved trading conditions, enhanced security, and created a predictable environment for buyers and sellers alike.
KCCA has also profiled 78 private markets across Kampala. These markets are being engaged and sensitised on the Markets Act 2023 and other relevant laws.
The goal is to harmonise operations between public and private markets and ensure that all players in the trading ecosystem operate under a unified regulatory framework.
This will help curb illegal market operations and ensure fair competition, safety, and public health standards.
Looking ahead, KCCA’s 2025/2026 prospects include continued investment in market infrastructure, more aggressive enforcement of trade order, and deepened efforts to link markets with broader urban economic development initiatives.
The Authority plans to continue vendor registration, department structuring, and sensitisation across both public and private markets to ensure that informal traders are absorbed into the formal money economy.
This restructuring of urban trade is particularly significant for Kampala, where the majority of city dwellers rely on small-scale, informal trading for income.
By formalising markets, the city is not only improving its physical and economic infrastructure but also empowering low-income earners to participate meaningfully in the broader economy.
As Kampala positions itself as a modern, inclusive, and business-friendly city, the formalisation of markets is emerging as a key pillar in improving livelihoods, stimulating small business growth, and boosting city-wide revenue collection.
It is a transformation that holds long-term potential for a more organised and economically vibrant urban future.