Traders in Uganda strike over high interest rates

  1. Posted on Thursday 12 January 2012 - 11:30
    guyson
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    Nangayi Guyson, AfricaNews reporter in Kampala, Uganda
    Traders in Kampala, Uganda on Wednesday started a- three day sit down strike protesting commercial banks' refusal to lower interest rates on loans given to them. The traders under their association Kampala City Traders Association (KACITA) accused commercial banks of arbitrarily increasing interest rates on even old loans; Interest rates on old loans were increased after the central bank raised its key rate by 10 percentage points to 23 percent in November, 2011.
    Uganda
    The traders want the Banks to stop charging increased interest rates on old loans and to refund the monies they say has been illegally collected from borrowers in form of increased interest rates.

    The Central Bank Governor Tumusiime Mutebile has insisted the Bank of Uganda cannot intervene, while the Banks have said they will not reduce the interest rates.

    By 8:00 am, the normal opening time, the Shops in Kampala city centre and other surrounding districts of Masaka and Mityana remained closed. Some traders were seen hanging outside their shops waiting to hear from their leaders.

    Kampala Traders under their Association (KACITA) announced a three-day closure of shops until government prevails over commercial banks to lower the interest rates; they condemn Bank of Uganda for refusing to act on the high interest rates that are biting traders who got loans from banks.

    According to KACITA spokesperson Issa Sekitto, the traders will not open their shops for three days unless the banks agree to charge the interest rates that were applying when the traders got the loans.

    The traders are also threatening to withdraw money from their respective banks as a way of showing anger to the banks.

    Sekitto says if after the three days the banks have not changed their mind, KACITA members will meet on the 14th and agree on the next course of action.

    He says traders will go ahead and protest with all they can against what he calls unfair practice by financial institutions which have the leeway to increase their lending rates.

    There is heavy Police deployment in different parts of the city with police officers patrolling on foot and police vehicle on standby at several streets.

    Last year, the same Kampala traders protested against the increasingly depreciating shilling against the dollar accusing government of being reluctant to avert the situation. Traders were finding it hard to trade given the depreciating value of the shilling against the dollar but they called off planned protest activities after KCCA promised to restore trade order in the Central Business District.

    The traders ‘strike has attracted many other workers sectors to also start calling off strikes, Makerere University lecturers have also threatened to strike in two weeks if the government does not come out with a position on their top up allowances and paying their arrears.

    According to Teopista Birungi Mayanja, the secretary of UNATU, the teachers who claim are working under terrible hardships are waiting to hear from the government, if their grievances are not responded to, they will go on a sit down strike.

    The teachers demand for an increase in their salary from the current 200,000 to 500,000 Uganda shillings, They are also complaining about the high taxes which are levied from their meagre salaries and want the government to put that into consideration immediately.

    The main opposition political party, Forum for Democratic Change has asked the government to respond to the concerns of Kampala city traders and Makerere University lecturers to avoid strikes by the two bodies.

    FDC spokesperson Wafula Ogutu says if the date given by traders passes when their issues are not resolved, the party will not hesitate to join the demonstration.

Reactions

  1. Posted on Tuesday 13 March 2012 13:21
    lhauri
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    116 berichten
    Lid sinds February 2012

    it is the same situation in many African countries and we should fix it in the near future. Mallorca yachts
  2. Posted on Tuesday 20 March 2012 13:18
    lhauri
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    116 berichten
    Lid sinds February 2012

    it is a big rate, but we can not change it. Maybe we need a long term strategy.
    yacht charter Dubrovnik
  3. Posted on Thursday 26 April 2012 11:15
    donatelo
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    75 berichten
    Lid sinds April 2012

    It is something strange in that area and we should be really careful.
    http://www.premiumflagbanners.com/

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