Vendors from Kalerwe and St. Balikuddembe (Owino) markets are set to benefit from low-interest government funding, known as Katale loan.
The business financing project targets low-income earners and will be disbursed through the Microfinance Support Centre (MSC) at an interest rate of only eight per cent (8%) per annum.
This move follows a directive from President Yoweri Kaguta Museveni that aims at empowering traders.
According to State House officials, the initiative is a pilot project scheduled to be rolled out to several other markets within the central region with the intent to empower more traders; this, however, will be dependent on the success rate in Kampala.
This Presidential directive, the first of its kind, is set to benefit over 10,000 vendors in 24 sub-markets within Kalerwe alone and several others who ply their trade in Owino market.
Speaking during a stakeholders’ meeting at Fairway Hotel on Tuesday 20th May, 2025, between government officials and market representatives from the two key markets, Mr. Moses Byaruhanga, the Senior Presidential Advisor In-charge of Political Mobilization assured the vendors (traders) that the government has provided this financial option to save them from unscrupulous money lenders whose terms of service are very exploitative.
“We have been told that access to finance is not progressing very well, yet we hear that so many moneylenders are profiting from these markets,” Mr. Byaruhanga noted.
He also expressed concerns that moneylenders are unlawfully asking their clients to deposit national Identity cards, which was outlawed.
“We have also been told that moneylenders are still taking your IDs as security to access loans/ financing,” he said.
“We want you to be able to access loans with fewer hindrances, and organise yourselves in small groups of five to ten vendors.”
Mr. Byaruhanga also told the vendors that through MSC, the government will disburse these funds, which will be readily available to them to help boost their enterprises.
According to Mr. Byaruhanga, this loan doesn’t require security.
“We need the group you belong to to verify you as a borrower. The money is not deducted by MSC and will be deposited directly to your phone on your mobile money account.”
He also told them that some vendors complicated the process for the government to improve their markets, as they had doubts about the government’s intentions to upgrade them.
“Many of the vendors were worried about increments in rental fees if we cemented their markets, while others were concerned that if the government cemented their markets, their land might be taken,” he said.
This prompted the government to only improve the markets that complied and left out those that rejected the move, which are now still operating in muddy conditions.
The meeting was attended by over 200 people, including women traders and their leaders, Local Council chairpersons, market leaders and Kampala Capital City Authority (KCCA) officials.
Hajjat Madinah Nsereko, a State House official, thanked the mobilisation team for the commendable job which they executed under such short notice.
Mr. Badru Lutalo, a market leader from Owino, said they have over 100 shelters, but each shelter has its leadership.
He also appealed to the government to enable them to acquire an office for better coordination.
The vendors generally expressed optimism and excitement about the Katale loan and mutually agreed to keep politics out of this new initiative for the betterment of all the market workers.
On his part, Mr. Dalawusi Kibuuka, the vice chairperson of Ddembe market, which is located within Kalerwe market, pledged to sensitise his fellow vendors about the immense benefits of this new opportunity.
Ms. Winnie Nalwoga from Nyanja zone (Owino market) appealed to KCCA not to complicate this process, saying that it could kill their morale and end up pushing them back to moneylenders.
KCCA weighs in:
Dr David Musunga, the deputy director of Production and Marketing at KCCA, responded to the issue raised by vendors about the hygiene of public toilets within the markets and said limited space is still a challenge, but pledged KCCA’s support.
“We shall work together with MSC and provide the necessary support for better service delivery,” Mr. Musunga emphasised.
Mr. Julius Kasirye, the manager of commercial services at KCCA, welcomed the vendors and commended them for their enterprising spirit, saying Kalerwe and Owino are key markets in Kampala, which is why they were chosen to pilot this project.
“If this Katale loan fails in these two markets, it will be a setback for the other markets that are also in line to benefit from this opportunity,” Mr. Kasirye stated.
How the Katale Loan will be accessed:
According to MSC officials, the opportunity is open to adults aged between 18 to 75 years of age. They will be required to open bank accounts to simplify transactions.
Ms. Lotah Arimureeba, a Client Relationship officer at MSC, said they are targeting members with small businesses, roadside vendors, those who operate stalls and low-income earners, especially women and single mothers.
MSC is a government institution that was established in 2001 and provides loans to Savings and Credit Cooperative Societies (SACCOs) after equipping them with financial literacy.
” We have realised that sometimes market vendors find it hard to access funding. So, through the government, we are now able to provide you financing as MSC. The aim is for development,” she said, further clarifying that MSC is not politically affiliated with any party.
She noted that vendors will be able to access the funding within two weeks after fulfilling the requirements, which include a photocopy of one’s national ID and NIN. For one to benefit, they will only need endorsement from a market representative.
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