Kampala shops closed over interest rates
SOURCE: THE NEW VISION, 11 JANUARY 2011
Shops closed.
Some shops in Kampala central business district have been closed as traders start a three-day sit down strike protesting commercial banks' refusal to lower interest rates.
A survey done by the New Vision has shown that shops along Luwum, William, Ben Kiwawuka, Johnson streets and Kampala Road have not opened.
Kampala City Traders Association (KACITA) announced a three-day closure of shops until government prevails over commercial banks to lower the interest rates.
In Masaka and Mityana shops are also closed. Police in Kampala have deployed heavily in the city center to avert any chaos and keep law and order.
Kikuubo traders sing the anthem before a football match during the traders strike in Kampala. PHOTO by Kennedy Oryema
Traders have closed shops despite a promise by commercial banks to review interest rates on old loans for clients which shot up after the Central Bank hiked its lending rates to the financial institutions.
The Prime Minister, Amama Mbabazi said that the measure is intended to save businesses from collapsing, secure properties given as collateral and also cater for salary earners whose income did not increase.
People following events at Kisekka market, during a confrontation with the Police. PHOTO by Kennedy Oryema
“They [banks] have taken cognizant of people with fixed incomes like teachers. Their salaries have not been increased,” Mbabazi said.
“In order to accommodate this position, they have offered to review interest rates on old loans or increase the payment period so that businesses don’t close or salary earners do not fail to meet their payment obligations.”
“As soon as Central Bank Rates (CBR) are reduced, they will also reduce lending rates across board [on old and existing loans],” the Premier added.
There was tension at Kiseka Market as Police battled with the traders who were demonstrating demanding for release of their colleagues who were arrested during the Kampala September 2009 riots.
Police deployed massively to halt the planned demonstration but the traders went on with the demonstration.
Traders blocked all roads leading to the market forcing police to shoot live bullets and tear gas to disperse them.
The traders claimed that most of their colleagues
who were arrested during those riots are still in prison and others are
nowhere to be seen.
They put up a banner with inscriptions warning
those in charge especially the Police Chief Kale Kayihura to release all
Kiseka market vendors who were arrested during the Kabaka’s aborted
tour of Bugerere in 2009 in 7 days.
Traders had planned to move from Kiseka market
through streets of Kampala to Natete junction where they were to hold
prayers and a rally.
Car drivers and cyclists were refused to accessed roads that lead to Bombo, Kampala, Old Kampala and Nabugabo roads.
Christopher Kasalawo, deputy operations officer
Kampala metropolitan said they could not allow a group of people to
disrupt a peaceful city.
“These hooligans have been blocking the road,
whipping people, pelting Police with stones. We cannot allow this to go
that’s why we had to engage them,” Kasalawo explained.
At around 11:00 am the situation was back to normal and the traders’ chairman asked the police to leave the market.
Later on, the crowd gathered again and they started
throwing stones at police demanding for the release of one of their
colleagues only identified as ‘Machine’.
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