SMEs ask UNBS to fulfil four-year fees reduction pronouncement

The Uganda National Bureau of Standards (UNBS) complex in Kampala. PHOTO/FILE/COURTESY 

What you need to know:

  • The fees reduction comes at a time when businesses, especially SMEs are struggling to make ends meet due to the Covid-19 disruptions.

Small and Medium Enterprises (SMEs), under their umbrella association - Federation of Small and Medium Enterprises (FSMEs) - have asked Uganda National Bureau of Standards (UNBS) to stop making public pronouncements and fulfill a fees reduction promise that it made about four years ago.

The call follows fresh announcement in regard to the reduction of certification fees by UNBS.   

In a press release early this week, UNBS said some of the charges, which were previously levied on enterprises seeking certification of their products such initial audit (Shs250,000) and surveillance audit fees (Shs250,000) had been phased out, noting that micro, small and medium enterprises will now only pay Shs500,000 certification fees while medium and large enterprises will pay Shs1m before approval to use the Quality Mark, which is valid for 12 months. 

“The new fees imply a reduction in certification fees by Shs350,000 for small enterprises and Shs300,000 for medium and large enterprises,” the statement reads in part.  

However, in 2018, UNBS made a similar announcement in which it reduced certification fees from Shs800,000 to Shs125,000 after passing the Mandatory Certification Regulation, which came into force on July 1, 2018. 

The drop in certification fees sought to increase compliance and quality among small businesses. 
However, Mr John Walugembe the FSME executive director, noted that he hopes this was not a publicity stunt because some certification fee reductions, which were announced in 2018 had not been effected four years later.  

“This is a contradiction because what was promised in 2018 was not implemented,” he said, noting that the long certification process was also discouraging the quality culture in Uganda. 

Mr David Livingstone Ebiru, the UNBS executive director, acknowledged the 2018 pronouncement but noted that the reduction was not implemented due to lack of a regulatory framework to support the changes.

“We never implemented the previous announcement because we needed to align the changes with the regulations. We are now operationalising it starting this month,” he said.

The fees reduction comes at a time when businesses, especially SMEs are struggling to make ends meet due to the Covid-19 disruptions.