By Maria Mariam Namala
KAMPALA — Members of Parliament have asked the Ministry of Trade, Industry and Cooperatives to investigate the growing presence of China Town Super Store outlets in Kampala amid concerns that foreign-owned retail businesses could be putting local traders at a disadvantage.
The lawmakers, sitting on the Public Accounts Committee (Central Government), said government should establish whether the expanding retail outlets are operating within Uganda’s trade and investment laws and assess their impact on Ugandan businesses dealing in similar merchandise.
The matter was raised during a meeting between the committee and officials from the Ministry of Trade, Industry and Cooperatives on Thursday, October 1, 2026. The ministry delegation was led by Permanent Secretary Lynette Bagonza.
Committee chairperson Patrick Nsamba questioned whether the government had assessed the effect of the growing number of China Town outlets on local retailers.
“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?” Nsamba asked.
He argued that foreign investors could have an advantage over Ugandan traders because of their access to comparatively cheaper sources of financing.
Nsamba said the government should not necessarily prevent foreign nationals from doing business in Uganda but should consider directing foreign investment towards areas that do not place local retailers at an uneven disadvantage.
“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,” he said.
Kyotera District Woman MP Fortunate Nantongo also raised questions about the perception that China Town outlets consistently sell goods more cheaply than local retailers.
Hon. Nsamba (L) and Permanent Secretary Lynette Bagonza at Parliament
She argued that such perceptions could influence consumers’ purchasing decisions and potentially divert customers from Ugandan-owned businesses, even in cases where differences in price or product quality may be relatively small.
Responding to the concerns, Commissioner for Internal Trade Zackey Kalega said the ministry would examine the operations of the outlets to determine whether they comply with Uganda’s laws governing trade and foreign investment.
Kalega pointed to provisions under the Trade (Licensing) Act, which place restrictions on non-citizens engaging in certain categories of trade, including hawking and retail activities involving restricted areas or goods.
He also referred to the Uganda Investment Authority’s investment licensing framework, under which foreign investors are required to demonstrate a minimum capital investment of US$250,000 to qualify for an investment licence.
Kalega said the ministry was still assessing the China Town businesses to establish the scale of their investments and whether they meet the applicable legal requirements.
“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,” he said.
The committee’s concerns come amid the rapid expansion of large retail outlets associated with China Town in Kampala, raising a wider debate over foreign participation in Uganda’s retail sector and the need to balance investment opportunities with protection of local businesses.
The ministry is expected to report back on its assessment of the outlets and their compliance with Uganda’s trade and investment regulations.