Banking officials said its hands are tied with respect to rates.
"Soaring inflation -- from 30 percent to 45 percent over the past year -- forced Uganda’s central bank to sharply raise interest rates, prompting local banks to do likewise. From August 2011 to December, the central bank raised the benchmark interest rate from 13 percent to 23 percent. The average prime lending rate for Uganda’s commercial banks stands at between 28-29 percent, making it virtually impossible for business owners to repay debt.
"The Kampala City Traders' Association, which organized the strike after negotiations with government officials broke down, has vowed to keep stores closed for three days. Over that period, business owners threatened to withdraw their savings from local commercial banks and make no deposits."