New law on management of markets in the offing

The Public Service and Local Government Committee has started considering the Markets Bill, 2021 which is expected to strengthen market administration.

The new law will replace the 1942 Markets Act, Cap.94 that was enacted when Uganda had a centralised system of governance, which has since modified to a decentralised system.

Workers MP, Hon Margaret Rwabushaija was granted leave by the House in 2019 to present a private member’s bill.

While presenting the Bill for consideration before the Committee chaired by Hon Godfrey Onzima, on Wednesday, 02 February 2022, the Minister for Local Government, Hon Raphael Magyezi said the current law does not address the current needs of market development, management and administration which have evolved over time and puts restrictions on individuals, companies and associations from owning or establishing markets.

“The act does not cater for the significant impact of urbanisation and population growth on the markets in the decades that followed independence, with the number of vendors increasing significantly. This places pressure on internal systems of governance in markets,” said Magyezi.

He added that the current law does not provide for clear regulation of revenue collection and administration, with no requirement for registration of vendors to ease revenue collection.

“The process of enhancing revenue has led most urban Councils in the country to privatize their local revenue collection. Such privatisation was viewed with contempt as it became a lucrative business to benefit a few individuals in urban markets,” Magyezi added.

The minister added that new law will strengthen market administration by providing for co-existence between local authorities, market operators and vendors. The bill will also provide for determination of market fees and revenue collection.

The new law will provide for establishment and management of markets by local governments and private persons and gives the Minster for Local Government power to oversee operations of markets in Uganda.

Magyezi said the ministry has embarked on preparation of the Markets Policy that will operationalise the law relating to establishment and control of markets in Uganda.

It will also ease the processes of establishing and managing markets by local governments and private persons.
“The policy will enhance stakeholder participation and accountability, streamline the collaborative approach of market governance and management between local governments, market vendors and other stakeholders,” said Magyezi.

Magyezi told the Committee that there is need to streamline and harmonise the implementation of markets by the two ministries and enhance coordination.

The Bill also seeks to address the administrative uniqueness of Kampala Capital City Authority so as to facilitate collaboration between the Ministry of Local Government and the Ministry for Kampala Capital City Authority.