NEBBI — Leaders of the Nebbi Market Vendors Association have protested the municipality's decision to increase the tender fee for collecting dues at Nebbi Main Market from about Shs11 million to Shs16.1 million, saying the new amount is unsustainable given the current business environment.
The association, which was awarded the six-month revenue collection contract, says it must first recover the Shs16.1 million paid upfront before making any profit.
Based on the current arrangement, the vendors estimate they need to collect at least Shs2.7 million every month simply to recover the tender fee.
To earn any meaningful return, they say collections would need to exceed Shs3.5 million per month, or approximately Shs113,000 every day.
According to the vendors, the challenge has been compounded by reduced economic activity resulting from the closure of border markets and a decline in business from traders dealing in fish and other commodities from Panyimur and Packwach, reducing daily market collections.
Nebbi Market Vendors Association Chairperson Jatex Jangeya described the revised tender fee as excessive.
"Previously the bidding amount was about Shs10 million, which was manageable. But now it is Shs16 million and we are not sure whether we shall recover the money we have invested," Jangeya said.
He noted that many traders pay as little as Shs500 in daily market dues, making it difficult for revenue collectors to meet their targets.
"We have vendors who pay as low as Shs500 for the items they sell. We cannot arbitrarily increase their dues because business is already difficult. People are struggling financially," he said.
The association also attributed declining revenue to the recent eviction of kiosk operators within Nebbi Municipality, which they say forced many traders to relocate to other markets or weekly trading centres, including Omyer and Akaba.
As a result, fewer vendors now operate at Nebbi Main Market.
Nebbi Deputy Mayor and Leader of Council Business Howard Musa, however, defended the municipality's decision, arguing that the market still has significant revenue potential.
"These market vendors have operated here for many years. They know every corner of the market and we believe they are capable of succeeding," Musa said.
He maintained that the revised tender fee reflects the market's earning potential.
"The bidding fee is not excessive. We previously had a private bidder who was making money, but after the review of the tender price she withdrew because she felt it would reduce her profit margin. I am pleased that the market vendors themselves stepped forward," he said.
Municipal records indicate that the market tender remained at approximately Shs11 million from the 2015/2016 financial year, when Nebbi was still a town council, until the 2020/2021 financial year.
The municipality later revised the amount upwards to about Shs16 million beginning in the 2024/2025 financial year.
Former bidder Osmon Jakony, who has unsuccessfully competed for the tender twice, said the current pricing leaves little room for profit.
"It is not easy to collect about Shs3.5 million every month or even Shs150,000 every day," Jakony said.
He also cited reduced business activity following the eviction of kiosk operators, saying the downturn has left fewer traders in Nebbi town.
Jakony said he has since shifted his business to Ndew Market in Ndew Sub-county, where the tender costs less than Shs5 million and offers more manageable returns.
Musa dismissed claims that the tender is unprofitable, arguing that some bidders simply seek to maximise profits at the expense of the municipality.
"Some bidders want the tender price reduced to about Shs12 million, which is unrealistic. We know there is money to be made," he said.
During the previous financial year, no bidder expressed interest in taking up the Nebbi Main Market tender at the revised price, prompting the municipality to ask the market vendors' association to manage revenue collection instead.
With the association now formally awarded the contract, it remains to be seen whether the venture will generate the returns needed to justify the higher tender fee.
