Businesspeople in Busia district, eastern Uganda, are sounding the alarm over high taxes that are driving locals to shop in neighboring Kenya, where prices are significantly lower ahead of Christmas. The trend is leaving Ugandan traders struggling to compete.

Suleiman Benzula, chairperson of the Busia Custom Traders Association and a boutique owner, notes that customers are increasingly crossing the border in search of better deals.

“We used to make sales of up to Shs 840,000 a week, but now we're seeing weekly sales plummet between Shs 160,000 and Shs 200,000,” Benzula said. This drastic decline is attributed to the high taxes imposed on local businesses.

Benzula urges fellow traders to explore partnerships with Kenyan counterparts, suggesting that operating across the border may be a more viable option than struggling in a highly taxed local market with dwindling customers.

A price comparison reveals a stark disparity between Ugandan and Kenyan markets. Adult shoes retail for Shs 30,000 to Shs 50,000 in Busia’s Ugandan markets, while similar footwear costs Shs 15,000 to Shs 35,000 in Kenya.

Children's shoes sell locally for between Shs 15,000 and Shs 32,000, compared to Shs 7,000 to Shs 25,000 in Kenya. Clothing prices also follow a similar trend, with garments generally cheaper across the border.

The price advantage has drawn Christmas shoppers not only from Busia, but also from neighboring districts like Namayingo, Iganga, Bugiri, Tororo, and parts of Butaleja. Many families are planning for Christmas early by saving throughout the year, but are now choosing to spend their money in Kenya to stretch their budgets further.

Residents are finding creative ways to shop across the border. One resident combined her savings with others to have one person cross into Kenya to buy shoes and clothes for several families.

A resident who spent Shs 100,000 on Monday to shop for his family of five in the Kenyan market now plans to return to buy more items, citing lower prices as a major draw.

Another resident is willing to spend less than Shs 10,000 on transport to reach the Kenyan market, noting that the savings on clothing and footwear far outweigh the travel costs.

Traders in Busia warn that unless taxes are reviewed or incentives introduced, local businesses risk losing even more customers to cross-border competition during the festive season.