Daniel Mugula
Tuesday 10,Nov 2026
Government has approved Shs18.9995 billion in compassionate ex-gratia assistance for 1,841 verified traders whose businesses were affected by the devastating October 2025 floods in Kampala’s Central Business District (CBD). At the same time, authorities have directed traders operating in basement sections of commercial buildings designated for parking to vacate immediately as part of measures to prevent a recurrence of similar flooding.
Minister of ICT and National Guidance Justine Kasule Lumumba announced the decisions while addressing journalists at the Uganda Media Centre in Kampala on Tuesday. She said the beneficiaries had undergone a comprehensive verification exercise involving security agencies and several government institutions to establish the genuine traders affected by the floods.
Lumumba explained that the compensation programme follows an earlier commitment by President Yoweri Museveni to provide Shs20 billion to support traders who lost their businesses and property during the floods of October 30 and 31, 2025.
She said the verification process was necessary because different institutions had initially submitted separate lists of potential beneficiaries, with one presenting about 7,000 names and another approximately 8,000, making it difficult to establish the genuine victims.
The lists were subsequently consolidated and subjected to verification involving security agencies, reducing the number of eligible beneficiaries to 1,841.
“The 1,841 who are going to benefit were all verified, and that is why the numbers have come down. It is not that they gave the Shs20 billion to others and now we are bringing Shs18 billion. That is the very Shs20 billion we talked about in November last year,” Lumumba said.
She added that the government had compiled detailed records of the verified traders, including their bank account details, businesses and affected properties, to facilitate the compensation process.
According to the minister, traders who lost their property but did not previously have bank accounts have also been encouraged to open accounts to ensure they can receive the assistance. The government intends to make the beneficiary information publicly accessible through the relevant software, which may be shared with the Uganda Media Centre to promote transparency.
The Office of the Prime Minister (OPM) will lead and coordinate the implementation of the compensation programme in collaboration with the Ministry of Finance, Ministry responsible for Kampala Metropolitan Affairs, Kampala Capital City Authority (KCCA), Ministry of Water and Environment, National Environment Management Authority (NEMA), National Water and Sewerage Corporation (NWSC), Ministry of Works, Internal Security Organisation (ISO), the Federation of Uganda Traders Associations (FUTA) and representatives of the affected arcades.
Cabinet also approved an additional Shs1 billion to support related interventions. Of this amount, Shs682.5 million will cater for FUTA’s operational expenses, while Shs318 million will be contributed to the association’s revolving fund.
Lumumba said each affected arcade would have a representative on the implementation committee to ensure that the process is coordinated and expedited.
Beyond compensation, Cabinet approved measures to address the structural and environmental problems blamed for the flooding, which affected 13 commercial buildings and St Balikuddembe Market, popularly known as Owino Market.
The affected locations included Nana Arcade, Totala Building, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Quarlicel Mall, Freedom Centre, Nabukeera Plaza, Sekaziga Arcade, Jesco Centre, Jambole Arcade, Jumbo Plaza and Owino Market.
Findings presented by the government identified several factors that contributed to the flooding, including interference with stormwater drainage systems by property developers along Sebana and Allen roads near Nakivubo Channel.
Properties cited in connection with the drainage concerns included Totala, Quarlicel, French Plaza, Sekaziga, City Plaza, Pentagon and Shri Indian Temple.
Other factors included the blockage of drainage outlets into Nakivubo Channel by silt, garbage, debris and illegally constructed pavements and plinth walls, which prevented water from flowing freely and caused it to back up into surrounding buildings and business premises.
The investigations also identified undersized or underutilised underground culverts and drainage channels along Nabugabo Road, Allen Road, Ben Kiwanuka Road, Luumo Street and Sebana Kizito Road. Inadequate drainage openings, poor solid waste disposal, poorly managed construction debris and the expansion of paved surfaces were also cited as contributing factors.
Lumumba further revealed that some commercial building owners had converted basement parking spaces into shops, contrary to approved architectural plans.
She said the practice increased the risks faced by traders because the basements, which were originally intended for vehicle parking, had instead been occupied by people and merchandise.
The government has consequently directed all traders operating in basement areas designated for parking to vacate immediately. Building owners are also expected to take responsibility for ensuring that the affected spaces are restored to their approved use.
The Office of the Prime Minister, KCCA, Ministry of Works and Ministry of Water and Environment have been tasked with developing a coordinated work plan to restore drainage systems, address illegal structures and reverse developments that contributed to the flooding.
Lumumba said the work plan should be presented to Cabinet within one month.
The announcement comes amid growing frustration among affected traders, who recently stormed the Office of the Prime Minister demanding the compensation they say President Museveni had promised them.
The traders accused government officials of repeatedly asking them to wait despite having completed the verification exercise.
“We were verified, they did everything, but we have never received our money. Yet we had the President release Shs200 billion for us,” one of the protesting traders said.
Police officers blocked the traders from staging a sit-in at the OPM offices, with some protesters reportedly chased away from the premises.
The traders also questioned the government’s priorities, arguing that money appeared to be released for other activities while their compensation remained outstanding.
The latest Cabinet decision is therefore expected to provide a framework for compensating the verified victims while addressing the drainage and construction-related challenges that have repeatedly exposed businesses in Kampala’s central business district to flooding.
