Kampala Shops Closed As Traders’ 3 Day Strike Starts

http://redpepper.co.ug/welcome/?p=25763 

SOURCE: THE RED PEPPER, 11JANUARY 2011

 Traders merchandise could be seen on Kampala streets infront of locked shops

Traders under their Kampala City Traders Association—KACITA began their three-day strike today, Wednesday.

Shops in Kikubo Lane, a busy business hub, are all closed and traders are seen playing idling around and playing football on the tarmac.

Our Reporter in the city says all shops in Kisekka Market, Kyagwe Road, William Street, Namirembe Road and Nakasero among others are closed.

Anti-riot police on high alert as situation on most streets remained calm

Mohammed Katimbo, the Kikubo traders’ association chairperson says they have all resolved to close their businesses after failing to agree with government and bankers on the high interest rates.

The traders want government to prevail over banks to reduce interest rates on loans taken before Bank of Uganda increased the Central Bank Rate (CBR). CBR is the rate at which the bank lends to commercial banks. When the CBR was increased to 23%, commercial banks reacted by raising interest rates on both the existing loans and new borrowers.

Only one shop remains open in the entire Kikubo lane. Lawrence Kyeyune, the shop owner who deals in scholastic materials, says he has to work so as to raise money for rent.

Other districts like Masaka have joined the strike but work is going on normaly in Jinja and several other districts. Police remains on high alert as events unfold.