Members of the Public Accounts Committee (PAC-Central Government) have tasked the Ministry of Trade, Industry and Cooperatives to address public concerns over the growing number of China Town Super Store outlets in the capital, Kampala.
The legislators said the expansive stores should be regulated to ensure that their operations do not create unfair competition or disadvantage Ugandan retailers dealing in similar products.
“With the proliferation of China Town stores in several corners of Kampala, have you studied its impact on local traders who deal in the same business? Is it fair that the Chinese invest in retail trade?” asked the committee chairperson, Hon. Patrick Nsamba.
Nsamba made the remarks while chairing a meeting with ministry officials on Thursday, 01 October 2026. The delegation was led by the Permanent Secretary, Lynette Bagonza.
He expressed concern that foreign investors have access to cheaper credit than Ugandan traders, giving them an advantage in the same retail market.
“We do not say you should stop Chinese from trading in the country but you should direct them to trade in specific goods, because they access cheaper credit, the playing field is already imbalanced,” said Nsamba.
Kyotera District Woman MP, Hon. Fortunate Nantongo, questioned the public perception that China Town stores offer products at lower prices than other retailers, arguing that the perception may be misleading and could draw customers away from local businesses even where the difference in prices or quality is minimal.
The Commissioner for Internal Trade, Zackey Kalega, said the ministry will examine the operations of China Town stores to establish whether they comply with Uganda’s trade and investment laws.
He explained that trade laws such as the Trade (Licensing) Act restricts non-citizens from engaging in certain forms of trade, including hawking and retail trade in unauthorised areas or goods.
Kalega further cited the Uganda Investment Authority requirement that a foreign investor should demonstrate a minimum investment capital of US$250,000 to qualify for an investment license.
“This is something we are studying; we will establish China Town’s threshold. If it is small, then we shall increase, for the law restricts foreigners from dealing in hawking and certain retails,” said Kalega.
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