Ministry directs repossession of Tororo market stalls over unpaid Shs585m rent

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Ministry directs repossession of Tororo market stalls over unpaid Shs585m rent
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Local Government Permanent Secretary Ben Kumumanya addressing Tororo market vendors on August 13, 2026. Photo/ Joseph Omollo.

The Ministry of Local Government has issued a tough stance against defaulting vendors at Tororo Modern Central Market, ordering urban authorities to immediately repossess market stalls occupied by traders who have accumulated rental arrears totaling over Shs 585 million.

The directive was issued by the Permanent Secretary in the Ministry of Local Government, Mr. Ben Kumumanya, during an oversight visit to the facility. Mr. Kumumanya warned that local authorities possess the legal mandate to recover the outstanding funds, which includes the option of auctioning merchandise belonging to persistent defaulters, with any surplus proceeds returned to the owners.

The Permanent Secretary’s decision came as a direct rejection of a petition submitted by the market vendors, who had asked the government to write off the accumulated debt.

Dismissing the request, Mr. Kumumanya explained that the modern facility was constructed using a loan from the African Development Bank under the second phase of the Markets and Agricultural Trade Improvement Programme (MATIP-2), an obligation the central government must fulfill.

"Government acknowledges your request, but it is too late because this market was reconstructed with a loan from the African Development Bank and it has to be repaid," Mr. Kumumanya told the traders. "So, you have to pay or surrender space so that it can be reallocated to interested vendors who are willing to clear the outstanding rental arrears."

The financial trouble within the facility was highlighted in a report presented by the Tororo Town Clerk, Mr. Ayub Alikwan, which revealed that some of the largest defaulters are leaders of the market vendors' association themselves, with several individuals owing upwards of Shs 3 million each.

Beyond the debt burden, Mr. Kumumanya voiced deep concern over the high number of empty stalls inside the complex, despite ongoing government initiatives to clear street vendors under municipal trade order enforcement.

To address operational challenges, the Permanent Secretary revealed that the government is considering lowering rental charges—specifically for lock-up shops—by Shs 10,000, though he reiterated that historical arrears will not be forgiven. He further disclosed that the government will seek additional resources to remodel certain stalls whose current physical designs have been criticized by traders as unsuitable for business.

Local leaders have embraced the proposed tariff adjustments while urging vendor compliance.

Tororo Municipality Member of Parliament, Mr. Sanjay Tanna, welcomed the planned rent reduction, emphasizing its potential impact on small enterprise survival.

"Let us begin from there because in business, every cent counts toward the success or collapse of an enterprise. Therefore, a reduction of Shs 10,000 cannot be underscored," Mr. Tanna noted, while urging traders to clear their dues and maintain a safe business environment.

Echoing similar sentiments, Tororo District Woman Member of Parliament, Ms. Sarah Achieng Opendi, called on the business community to abide by established trade orders and avoid unnecessary conflict with law enforcement agencies.

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