PurposeIn Uganda, smallholder farmers produce about 70% of the food but receive very low prices on the sales channels they use. To improve farmers' livelihoods, other innovative sales channels such as farmers' markets (FMs) have to be explored. Therefore, the study aimed to determine the potential of establishing farmers' markets in Uganda, focusing on Kampala district.Design/methodology/approachA qualitative methodology was used to understand farmers' perceptions and the factors that could influence the success of the farmers' markets. In addition, the potential of FMs has been analyzed through the components of the Localized Agri-Food System (LAFS).FindingsThe respondents had a positive perception of the farmers' markets, and farmers have an urgent need for other sales channels that could be profitable for them. Factors that could influence the success of the FMs were highlighted, including infrastructure in the marketplace, transportation and taxation by the government.Research limitations/implicationsThe study had a limited sample size of the farmers, and it was carried out in 3 divisions of Kampala district, an urban area; thus, the findings cannot be generalized to fit the other regions of Uganda.Originality/valueThe LAFS showed that the foundation for establishing FMs is available; however, it has to be strengthened through the coordination of different stakeholders that work with the farmers.