The decision was announced during a meeting at Iganga Municipal Council attended by local leaders, including Resident District Commissioner Eric Ssewandaji, Iganga Municipality Mayor Kongola Nasser, NRM Iganga Municipality Chairperson Ssajabi Abbas, District Police Commander SSP Elepot Eria and representatives from the office of the area Woman Member of Parliament.
Hundreds of traders who attended the engagement accused the market leadership of mismanaging funds collected under the SACCO loan scheme.
The traders said they had saved money with the expectation of accessing affordable loans to expand their businesses but claimed the initiative had not benefited members as intended.
After hearing submissions from both the traders and the outgoing administration, Namyalo said accountability and transparency were critical to the success of government-supported programmes.
"When I visited Iganga in January, I promised that I would return and ensure your concerns were addressed. Today, I have fulfilled that promise because leadership must always listen to the people," Namyalo said.
She said public trust in government initiatives depends on leaders managing resources responsibly.
"Accountability, transparency and responsible leadership are not optional. They are the foundation for the success of every government empowerment programme meant to improve the lives of our people," she said.
Namyalo directed that the existing market leadership be dissolved immediately and ordered traders to elect new leaders within two weeks.
She also ruled that members of the outgoing administration would not be allowed to contest in the forthcoming elections, saying the move was necessary to restore confidence among traders.
"The new leadership must be chosen by the traders themselves, and the process must be transparent and credible. The outgoing leadership will not participate in the elections so that the market can begin a new chapter built on trust," she said.
The Mayor of Iganga Municipality, the RDC and other district authorities were tasked with supervising the election process to ensure it is free, inclusive and transparent.
Namyalo also pledged continued monitoring of government wealth creation initiatives, including the Parish Development Model and Emyooga, to ensure beneficiaries receive intended support and public resources are protected.
"We shall continue monitoring programmes such as the Parish Development Model and Emyooga to ensure that the intended beneficiaries receive the support and that public resources are protected," she said.
Traders welcomed the intervention, describing it as a timely response to their concerns.
One vendor said the decision had restored hope among traders who had been seeking accountability over the SACCO funds.
"We thank Hajjat Namyalo for keeping her promise to return and listen to us. We now have renewed hope that justice, accountability and proper management will be restored in our market," the trader said.
The intervention comes as the Office of the National Chairman continues efforts to monitor government empowerment programmes and promote accountability in community-based initiatives across the country.