Prime
How refugees are powering Kampala’s economy, culture

Eritreans at a shop ran by their compatriot in Kabalagala-Kirombe, Kampala on May 20, 2025. PHOTO/GEOFREY MUTUMBA
What you need to know:
- Uganda hosts nearly two million refugees—one of the highest globally. Kampala is home to 157,244 refugees, about 8.3 percent of the total. As of April 30, Eritreans numbered 58,720 (3.1 percent), Somalis 50,611 (2.7 percent), and Ethiopians 15,349 (0.8 percent).
At first glance, a walk through the busy neighbourhoods of Kansanga, Kabalagala, and Bunga might make one feel they are somewhere in the Horn of Africa, given the large number of refugees from that region.
The aroma of freshly brewed coffee from small cafés, the sight of Orthodox churches nestled between apartment blocks, and signposts written in Tigrinya or Amharic all point to a cultural wave that has taken root in Makindye Division, Kampala.
This is the new face of Uganda’s urban landscape—a quiet yet profound transformation driven by thousands of refugees from the Horn of Africa and beyond. Eritreans, Ethiopians, Somalis, Congolese, and South Sudanese have not only sought sanctuary in Uganda but are actively reshaping the country’s economic and cultural fabric.
A second home of peace
Following years of political instability, civil wars, and economic hardship, these communities have found Uganda’s open-door refugee policy and relative peace irresistible. Mr Yuen Morgasa, an Ethiopian businessman in Kansanga, says: “Uganda is peaceful. People are friendly and welcoming. Here, I don’t just survive, but I grow.”
In the evenings, a walk along the Ggaba Road stretch reveals a new rhythm of life. Music from Habesha restaurants blends with Ugandan tunes, and the scent of spicy stews fills the air. Many of the area’s businesses—from boutiques and cafés to medical clinics and salons—are now run by urban refugees.
A new business ethos
What sets many of these urban refugees apart is their approach to business. Community members pool funds, start businesses, and share profits—a system built on mutual trust and accountability. “Most locals were shocked by how we operate,” Mr David Mehari, an Eritrean, says.
“For six months, I worked with friends in town. Then, a friend back home sent me money to start an Internet café. We share the profits. It’s simple. We trust each other.” Today, Mr Mehari runs a restaurant and a tech shop, employing six Ugandans. “Being a refugee doesn’t mean you’re poor. Many of us come with money. What we need is stability,” he explains. The refugee influence is especially evident in real estate, hospitality, entertainment, and trade.
Friction in the boom
However, success brings disruption, and not everyone is celebrating it. The influx of refugees has driven up the demand for housing. Rooms that previously cost Shs250,000 now go for as much as Shs1 million. Mr Michael Gazea, an Eritrean veterinary doctor who came to Uganda in 2012, says: “Back then, everything was cheap—houses, transport. Now, it has changed. Refugees are willing to pay more, so landlords keep increasing rent.” Ms Margaret Nagadya from Nabutiti Zone says: “Landlords only care about the highest bidder. We’re being pushed out of our own homes.”
Local leadership speaks out
Mr Francis Sseguya, the LC21 chairperson of Kansanga, says: “Yes, rent is up. Some locals have moved back to the villages. But at the same time, there’s more development. New buildings are coming up, and more businesses have come up. We cannot ignore that.” Other leaders are still sceptical.
“They don’t support our schools, churches, or hospitals. If they leave today, what will they leave behind? Nothing,” one leader, who asked to remain anonymous, says.
Cultural integration or isolation?
Many Habesha refugees stick to their communities, speaking their native languages and maintaining their religious and cultural customs. For them, it’s about safety and belonging. Mr Yared Naemen, a restaurant owner in Kansanga, says: “We stay close because of the language. There are Orthodox churches we go to. If I live far, who helps me when I need something?”
But this close-knit lifestyle also raises concerns about cultural isolation. Makindye East Lord Mayor Mosh Ssendikadiwa observes: “... many Eritreans and Ethiopians don’t share their deep cultures, like marriage practices. They live among us but don’t fully open up.” However, Mr Adunye Araye, an Eritrean shop attendant, says: “It’s not about ignoring locals. We’re just trying to preserve our identity. Marriage, food—these things are personal.”
Numbers and the Law
Uganda hosts nearly two million refugees—one of the highest globally. Kampala is home to 157,244 refugees, about 8.3 percent of the total. As of April 30, Eritreans numbered 58,720 (3.1 percent), Somalis 50,611 (2.7 percent), and Ethiopians 15,349 (0.8 percent).
Makindye Division has seen a sharp increase in urban refugees, particularly Eritreans and Ethiopians. Unlike South Sudanese and Congolese, many of whom have returned home, the Habesha community continues to expand. Yet legal concerns linger. Mayor Ssendikadiwa warns, “Some refugees have acquired land through freehold, which is against the law. They are only allowed to lease or rent. This needs to be investigated.”