Businesspeople in Busia district, eastern Uganda, are raising concerns over high taxes, which they say have driven local residents to shop in neighbouring Kenya, where goods are significantly cheaper ahead of the Christmas season.
Suleiman Benzula, chairperson of the Busia Custom Traders Association and a boutique owner along Customs road, said Ugandan traders are increasingly struggling as customers cross the border in search of lower prices.
According to Benzula, business in Busia town slows dramatically on Mondays and Thursdays, which coincide with major open market days across the border in Kenya.
“Previously, we could make sales of up to Shs 840,000 a week, but nowadays weekly sales are between Shs 160,000 and Shs 200,000,” Benzula said.
He urged fellow traders to explore partnerships with Kenyan counterparts, arguing that operating across the border may be more viable than struggling in a highly taxed local market with dwindling customers.
A price comparison shows a significant disparity between Ugandan and Kenyan markets. Adult shoes in Busia’s Ugandan markets retail between Shs 30,000 and Shs 50,000, while similar footwear in Kenyan markets costs between Kshs 535 (about Shs 15,000) and Kshs 1,250 (about Shs 35,000).
Children’s shoes sell locally for between Shs 15,000 and Shs 32,000, compared to Kshs 250 (approximately Shs 7,000) to Kshs 893 (approximately Shs 25,000) in Kenya. Clothing prices follow a similar trend, with garments generally cheaper across the border.
The price advantage has drawn Christmas shoppers not only from Busia, but also from neighbouring districts, including Namayingo, Iganga, Bugiri, Tororo, and parts of Butaleja. Juliet Adikinyi, a resident of Busia Municipality, said many families plan for Christmas early by saving throughout the year, but are now choosing to spend their money in Kenya to stretch their budgets further.
“We even combine our savings so that one person crosses to Kenya to buy shoes and clothes for several families,” she said.
Another resident, Stephen Ojuku, said he spent Shs 100,000 on Monday in the Kenyan market to shop for his family of five and plans to return to buy shoes, citing lower prices.
Jennifer Kagoda, a resident of Namayemba in Bugiri district, said she is willing to spend less than Shs 10,000 on transport to reach the Kenyan market, noting that the savings on clothing and footwear more than compensate for the travel costs.
Traders in Busia say that unless taxes are reviewed or incentives introduced, local businesses risk losing even more customers to cross-border competition during the festive season.
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