8 Key changes brought about by the Markets Act 2023 

Until the enactment of the Markets Act 2023, Uganda did not have an explicit law on Market operations. The repealed Markets Act Cap 94 had gaps that needed to be addressed like inefficient market management and limited consumer protection.

The repealed Markets Act Cap 94 lacked comprehensive and up-to-date provisions to address the evolving needs of the market sector. It did not outline proper procedures for market licensing, allocation of stalls, and dispute resolution. These deficiencies led to inconsistent and inefficient market management practices hindering the optimal utilization and development of market resources.

The Markets Act 2023 clearly categorizes vendors, stall allocation, and overall market administration. In the case of Odida Charles Vs Omaya Patrick and others (H.C.T Misc Cause No.03 of 2023) Hon Justice George Okello by way of obiter noted that “the changes ushered by the Markets Act, 2023 will address once and for all, market leadership issues”. Below are the key changes introduced by the Markets Act 2023;

1.Vendors Registration. The Markets Act 2023 introduces mandatory free vendor registration in public or private markets. Registration is done by the respective administrative authority. Upon registration, every vendor must be issued with a vendor registration number. Section 18(5) of the Markets Act 2023 prohibits any administrative authority of either a public or private market from charging fees for the purpose of vendor registration.

2.Vendor Register display in markets. According to the Markets Act 2023, a copy of the register of vendors showing their particulars and the goods or services they sell must be displayed in a visible place in the market. Administrators of licensed Public or private markets are mandated by the Markets Act, 2023 to duly comply.

3. Stall allocation.Section 21 of the Markets Act 2023 introduces an Allocation Committee to oversee the allocation of work spaces, shops, pitches, and stalls in all public markets. The committee is constituted by the administrative authority of the respective market. Market allocation committees will be key in reducing disputes in Uganda. Committees also bring more transparency and fairness in the allocation process.

4. Confiscation of vendor goods in markets. Market administrators in Uganda can confiscate goods from vendors who default to pay market fees. Section 26(2) of the Market Act 2023 allows a market administrative authority to seize the vendor’s goods upon failure to pay the market fees and if the fees are not paid within 14 days from the date of seizure, the goods can be sold.

5. Vendors’ conduct. Under the Markets Act 2023, a Vendor shall be presumed to have abandoned his or her workspace if he or she doesn’t occupy it within 3 months from the date of allocation. Under the Markets Act 2023, if a Vendor fails to pay market dues for a period of three months, he or she shall be presumed to have abandoned his or her workspace. Under Section 28 (1), a person who knowingly makes false information in respect of an application for a license commits an offense and is liable, upon conviction, to a fine not exceeding sixty currency points or imprisonment not exceeding one year, or both. Exhibiting goods for sale on pathways or any drainage channel within a market is not allowed. A person who contravenes that section commits an offense and is liable on conviction to a fine not exceeding twenty-four currency points or imprisonment not exceeding six months or both.

6. Leadership. Section 21(11) of the Markets Act 2023 restricts individuals employed by a local authority from having a stall in a market within the jurisdiction of that particular local authority. This measure is in place to maintain fairness and prevent any potential conflicts of interest. However, it is important to note that this restriction does not apply to individuals who already had the stall prior to assuming their office. This provision aims to prevent any potential conflicts of interest in the allocation of market stalls. A local authority shall, in consultation with the responsible Minister determine fees to be levied in a market under its areas of jurisdiction.

7. Stall limit. Under Section 21(9) of The Markets Act 2023, it is illegal for a vendor to hold more than one work space, shop or stall in a public Market.

8. Subletting stall. These provisions aim to regulate and maintain the fair allocation of spaces within markets, ensuring that vendors occupy only the spaces they are authorized to use. According to Section 21(8) of the Act prohibits a market vendor from sublet his or her allocated workspace or stall without obtaining prior authorization. If a vendor is found to have sublet their space without proper authorization, they are required to vacate the workspace immediately.