Street Vending and the Economic Development of Kampala City

ABSTRACT Street vending contributes to the economic development of urban cities especially in developing economies as a source of livelihood. Street vendors lack identification in their forms and their roles are not well recognized in the economic development by city authorities. This study sought to assess the contribution of street vending towards the economic development of Kampala City. The study objectives were to uncover the forms of street vendors, their roles to the economic development of Kampala city in reducing unemployment, income inequalities and poverty reduction, and the challenges of street vending in Kampala City. The study employed a cross-sectional survey design using both qualitative and quantitative approaches to gather data from 148 street vendors for survey questionnaires, focus group discussions for 24 participants and in-depth interviews for 5 key informants from the division offices and Capital City Authority. Purposive sampling was used to select the key informants and focus group participants. The study found out that street vending is highly associated with lack of skills and that the major forms of street vendors are the mobile and the non-mobile. On the roles, the findings showed that street vendors contribute to economic development through self-employment in business ownership especially the women (96%) and, 33 percent pay taxes especially the non-mobile street vendors and thus reducing unemployment. The findings showed that they contributed to reducing income inequalities through their incomes got from their earnings. The street vendors were found to play a significant role in poverty reduction by contributing family wealth and support in paying school fees, house rent and purchase of items. Street vendors are blamed for dodging taxes (76%), damaging pavements, block drainages and spaces, and are seen as a threat to shop traders. They also cause air pollution and solid waste (garbage). The study further found out that 57 percent street vendors face arrests from KCCA authorities and their goods are confiscated especially the nonmobile street vendors. They have little capital (11%) especially the mobile vendors. Street vendors work under unfavorable conditions without shelter. The study concludes that street vending contributes to the economic development of Kampala city. The study also recommends the recognition of street vendors especially their contributions by KCCA, government and other developmental partners. The street vendors should be given support to improve on their skills and wellbeing.