KAMPALA: Traders in Kampala are feeling the pinch of rising commodity prices. They reveal that their sales have been very low in the last two months.
Some of the traders who spoke to Uganda Radio Network-URN indicate that some of the commodities that are purchased faster have more or less turned into luxury items for consumers who are not buying them in sufficient amounts now. From soap to cooking oil to fuel, the prices of most basic items have hit an all-time high, affecting low-income earners.
The retail price of a kilogramme of soap was about four thousand five hundred shillings in January, but by the end of March it was about nine thousand shillings. The price of cooking oil has also increased during the same period.
According to the Uganda Bureau of Statistics (UBOS), annual inflation stood at 3.7% at the end of March 2022, up from 3.2% in February.
UBOS says the increase is the highest since September of 2018. Soap and cooking oil prices have risen because of a lack of raw materials from Malaysia, but traders in Kampala say that prices for other goods have also gone up.
Rose Nakanjako, who runs a wholesale store in Kisenyi, said while she has stocked commodities as per her previous sales, buyers are nowhere to be seen. “For example, I used to sell more than 20 sacks of rice in a week, but now making 15 is not easy,” she said.
Ritah Nakitto, a dealer in ladies’ clothes, told URN that she suspects that people don’t have enough money to purchase the goods.
Caroline Zawedde, a boutique retailer, also said customer scarcity has been the worst in the past two months.
While UBOS said there was a decrease in some commodities like information and communication, Vincent Kawooya, a dealer in mobile phones, told URN that potential customers only go there for window shopping.
He thinks that people who live outside of Kampala might not be able to afford the high transportation costs.
Stella Naava, a jewellery dealer, says she is about to close shop because she cannot raise enough money to pay for other costs, including rent. She said that the sales are low and this shows how consumers are suffering.
It has been a hard time for Hassan Mugise, who rides a Boda Boda. To get through it, he has used survival skills like not buying new clothes, he said.
Harrison Katende, also a Boda Boda raider, said he is not buying some commodities because he has no money.