**”High Taxes Push Ugandan Shoppers to Kenyan Markets Ahead of Christmas Season”**
**Busia, Uganda (December 18, 2025) –** Businesspeople in Busia District, eastern Uganda, are raising alarm over the impact of high taxes, which they say have forced local residents to flock to neighbouring Kenya in search of cheaper goods ahead of the Christmas season.
According to Suleiman Benzula, Chairperson of the Busia Custom Traders Association, Ugandan traders are struggling as more customers opt for cross-border shopping, where prices are significantly lower. Benzula, who owns a boutique along Customs Road, explained that business in Busia town has slowed drastically, especially on Mondays and Thursdays, which coincide with major open market days across the border in Kenya.
“Previously, we could make sales of up to Shs 840,000 a week, but nowadays weekly sales are between Shs 160,000 and Shs 200,000,” said Benzula, highlighting the drastic drop in revenue as Ugandans turn to Kenyan markets for better deals.
### **Price Disparity Between Uganda and Kenya**
A price comparison between Ugandan and Kenyan markets reveals a significant disparity, with Kenyan prices often much lower. For instance, adult shoes in Busia’s Ugandan markets are priced between Shs 30,000 and Shs 50,000, while similar footwear in Kenyan markets costs between Kshs 535 (about Shs 15,000) and Kshs 1,250 (about Shs 35,000). Children’s shoes, typically sold in Uganda for Shs 15,000 to Shs 32,000, are available in Kenya for as little as Kshs 250 (about Shs 7,000) to Kshs 893 (about Shs 25,000).
Clothing prices follow a similar pattern, with garments generally cheaper in Kenya. This price advantage has led many Christmas shoppers from not only Busia but also neighbouring districts, such as Namayingo, Iganga, Bugiri, Tororo, and parts of Butaleja, to make the trip to Kenyan markets.
### **Shoppers and Traders Seek Solutions**
Juliet Adikinyi, a resident of Busia Municipality, shared that many families save throughout the year in anticipation of Christmas but are now choosing to spend their money in Kenya to maximize their budgets. “We even combine our savings so that one person crosses to Kenya to buy shoes and clothes for several families,” she said.
Stephen Ojuku, another local resident, spent Shs 100,000 on Monday in the Kenyan market to shop for his family of five. He plans to return soon for more purchases, noting the significant savings compared to Ugandan prices.
Jennifer Kagoda, a resident of Namayemba in Bugiri District, explained that the savings on clothing and footwear more than justify the transport costs. “I am willing to spend less than Shs 10,000 on transport to Kenya, as the savings on goods are far greater,” she said.
### **Concerns for Local Businesses**
Local traders in Busia are increasingly concerned that unless taxes are revised or incentives introduced, they may lose even more customers to the more affordable prices in Kenya. Benzula has urged fellow traders to consider partnerships with Kenyan counterparts, suggesting that operating across the border might be more viable than struggling under Uganda’s high tax burden.
“Unless something is done, we may face even tougher times ahead as more shoppers head to Kenya,” said Benzula.
### **Urgent Call for Tax Reforms**
With the festive season approaching, businesspeople in Busia are calling for urgent tax reforms to help local markets stay competitive. As the cross-border shopping trend grows, local businesses fear that without adjustments to tax rates or new incentives, many Ugandan traders could face even greater challenges in retaining customers.
**Stay Updated on Cross-Border Shopping Trends in Uganda and Kenya**
