Business 4 June 2026 Daily Monitor (Uganda)
Arua City's commercial housing crisis laid bare by trade order
Recent enforcement of a trade order in Arua City has highlighted a critical shortage of affordable commercial spaces, forcing many traders to operate informally or face exorbitant rents. The situation underscores the city's struggle to keep pace with its growing economic activity and population. Source: https://www.monitor.co.ug/uganda/news/national/how-trade-order-exposed-arua-city-s-acute-shortage-of-commercial-housing-5484412
A recent crackdown on informal trading in Arua City has starkly revealed a deep-seated shortage of commercial housing, pushing many businesses onto the streets. Traders who once operated from pavements and roadsides are now struggling to find affordable lock-ups, with many unable to meet the high rental demands of landlords.
Ahmed Angulibo, a vendor who dealt in second-hand shoes, shared his frustration after failing to secure a suitable spot even after pooling resources with colleagues. “I have moved to most of the landlords in the city… but I have failed to get any room,” he told Daily Monitor.
This scarcity is not limited to small traders. A local NGO seeking a disability-friendly office space has also found it challenging to locate suitable premises. Landlords are reportedly converting residential lodges into shops to capitalize on the high demand, raising safety concerns due to modifications of aging structures.
The enforcement of the trade order, targeting roadside vending and encroachment on walkways, has brought to light the number of traders operating without formal business premises. For some, like salon operator Flavia Adokorach, the available spaces come with prohibitive costs, with landlords demanding significant upfront payments and monthly rents between Shs350,000 and Shs800,000.
Moses Obeta, chairman of the Arua City business community, acknowledged the improved organization brought by the trade order but stressed the need for development plans to accommodate the city’s growth. He noted that many traders are being priced out of established commercial buildings, which are often controlled by wealthy landlords or occupied by larger businesses.
The Arua City Chamber of Commerce and Industry is working on reviewing construction processes to ensure balanced commercial and residential development and to avoid excluding those who cannot afford current housing rates. However, with a daytime population exceeding 480,000 and pressure from regional trade, the demand for commercial space continues to outstrip supply. Many traders, like fruit seller Lucy Anderu, find themselves with no other option but to operate informally, lamenting, “The rent is too high for me to afford.”
Officials admit that enforcement alone is insufficient and call for increased investment in structured markets and business spaces. Without a comprehensive long-term strategy for commercial housing, Arua City risks seeing its economic energy stifled by its inadequate infrastructure.