Africa-Press – Uganda. When starting a business, the golden rule is always location, location, location. It’s no surprise that businesses in the city center often perform differently from those in the suburbs — despite being separated by only a few kilometers.
However, a growing crisis is quietly brewing in these suburban centers: skyrocketing rent prices are slowly suffocating small and medium businesses before they even find their footing.
Take a look around areas like Najjera, Kiwatule, Kyaliwajjala, Kisaasi, and Kyanja — you’ll find countless boutiques, supermarkets, and grocery stores cropping up along the main roads. But just as quickly as they open, many close down. Very few survive long enough to grow, and one of the biggest culprits is rent.
To secure a small space in any of these locations, business owners are expected to part with shs 800,000 to 1,000,000 every month — and that’s just the starting point. The critical question is: how much are these businesses making daily to sustain such rent? Unfortunately, not enough.
Customers, understandably, seek affordability. There’s a common belief that items sold nearby should be cheaper. If not, many opt to travel to the city center, convinced they’ll find better deals — even though the cost of transport often cancels out the savings. This mindset leaves suburban business owners in a bind: fewer walk-in customers, shrinking sales, but fixed, high monthly rent.
In the city center, things aren’t much better. Many buildings have empty upper floors — hardly attracting any foot traffic — yet landlords still demand high monthly rent, sometimes even quoted in U.S. dollars. The result? Business owners are forced to inflate prices just to break even, giving rise to the popular saying: “Oyo atunda rent” — meaning, “That one is just selling to cover rent.”
This situation creates a vicious cycle. High rent leads to high prices. High prices drive customers away. Without a steady customer base, businesses fail. Add to this the weight of heavy taxation and operational costs, and it becomes clear why entrepreneurship in urban Uganda feels like a trap more than an opportunity.
The way forward? We must call for a more sustainable and equitable business environment.
Landlords must begin to understand and adapt to the realities of the businesses they host. Rent prices should be reflective of actual market performance, not speculative value. Local governments should consider tax incentives for startups and small businesses, while also regulating rent escalation in commercial zones.
Business owners should also explore alternative models, such as shared spaces, pop-up markets, or online storefronts — already a growing trend that may define the future of retail. If rent continues to push businesses out, landlords will be left with beautiful but empty shells.
It’s time to build a business environment that works for everyone — landlords, entrepreneurs, and consumers alike. Sustainable rent practices, fair taxation, and customer awareness are essential if we want to see businesses not just survive, but thrive.
Source: Nilepost News
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