Daniel Mugula
Wed,11,Nov 2026
The Federation of Uganda Traders Associations (FUTA) has welcomed the government’s approval of Shs18.9995 billion in compensation for 1,841 traders whose businesses were affected by the October 2025 floods in Kampala’s Central Business District (CBD), expressing optimism that the long-awaited payments will soon reach the beneficiaries.
FUTA President John Kabanda said the Cabinet decision had renewed hope among affected traders, who have endured months of uncertainty while waiting for the fulfilment of President Yoweri Kaguta Museveni’s pledge to support businesses that suffered losses during the devastating floods.
Speaking at a press conference at Macsedo Hotel in Kabusu, Kampala, Kabanda thanked government leaders, including the Prime Minister and other officials, for their efforts in ensuring that the President’s commitment is fulfilled.
Kabanda, who has been at the forefront of efforts to secure compensation for the affected traders, said the announcement was encouraging, particularly for those who had waited for a long time without knowing when they would receive financial assistance.
He revealed that FUTA would soon establish an office to facilitate the collection and processing of the necessary documentation from beneficiaries, assuring traders that the process would be expedited to enable them to receive their money without unnecessary delays.
He further urged traders whose names may not appear on the approved list to remain calm, assuring them that the association would continue engaging the relevant government authorities to ensure fairness and that no eligible beneficiary is left behind.
However, Kabanda appealed to traders to remain united and avoid turning against their leaders whenever challenges arise, saying any outstanding concerns should be addressed through dialogue and collective engagement.
Some of the affected traders who spoke to journalists welcomed the government’s decision, expressing happiness that the compensation process was finally moving forward. They urged fellow beneficiaries to use the money responsibly to help rebuild their businesses and recover from the losses suffered during the floods.
The government on Tuesday announced that Cabinet had approved Shs18.9995 billion in compassionate ex-gratia assistance for 1,841 verified traders whose businesses and property were affected by the floods of October 30 and 31, 2025.
The announcement was made by the Minister of ICT and National Guidance, Justine Kasule Lumumba, while addressing journalists at the Uganda Media Centre in Kampala.
Lumumba explained that the compensation follows President Museveni’s earlier pledge to provide Shs20 billion to support traders who lost their businesses and property during the floods.
She said the verification exercise was conducted after different government institutions submitted separate lists of potential beneficiaries, with one institution presenting approximately 7,000 names and another about 8,000, creating difficulties in identifying the genuine victims.
The lists were subsequently consolidated and subjected to a comprehensive verification exercise involving security agencies and other government institutions, 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.
The minister added that government had compiled detailed records of the verified beneficiaries, including their bank account details, businesses and affected properties, to facilitate the payment process.
Traders who suffered losses but do not have bank accounts have also been encouraged to open them to enable them to receive the financial assistance. Government further intends to make beneficiary information accessible through the relevant software to promote transparency in the distribution of the funds.
The Office of the Prime Minister (OPM) will coordinate the implementation of the compensation programme in collaboration with the Ministry of Finance, the ministry responsible for Kampala Metropolitan Affairs, Kampala Capital City Authority (KCCA), the Ministry of Water and Environment, the National Environment Management Authority (NEMA), the National Water and Sewerage Corporation (NWSC), the Ministry of Works, the Internal Security Organisation (ISO), 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 proper coordination and expedite the process.
Beyond compensation, Cabinet also approved measures to address the structural and environmental challenges identified as contributing to the flooding, which affected 13 commercial buildings and St Balikuddembe Market, popularly known as Owino Market.
The affected commercial buildings 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 and Jumbo Plaza, alongside Owino Market.
Government investigations 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 mentioned in connection with the drainage concerns included Totala, Quarlicel, French Plaza, Sekaziga, City Plaza, Pentagon and Shri Indian Temple.
Other contributing factors included the blockage of drainage outlets into Nakivubo Channel by silt, garbage, debris and illegally constructed pavements and plinth walls, which restricted the free flow of water and caused flooding in surrounding buildings and business premises.
Investigations also established that some underground culverts and drainage channels along Nabugabo Road, Allen Road, Ben Kiwanuka Road, Luumo Street and Sebana Kizito Road were either undersized or underutilised.
Inadequate drainage openings, poor solid waste disposal, poorly managed construction debris and the expansion of paved surfaces were also identified as factors that worsened the situation.
Lumumba further disclosed that some commercial building owners had converted basement parking spaces into shops, contrary to approved architectural plans, exposing traders and their merchandise to greater risks during heavy rains.
Consequently, government has directed all traders operating in basement sections designated for parking to vacate immediately. Building owners have also been tasked with ensuring that the affected spaces are restored to their approved use.
The Office of the Prime Minister, KCCA, the Ministry of Works and the Ministry of Water and Environment have been directed to develop a coordinated work plan to restore drainage systems, address illegal structures and reverse developments identified as having contributed to the flooding.
Lumumba said the work plan should be presented to Cabinet within one month.
The compensation announcement comes against the backdrop of growing frustration among affected traders, some of whom recently stormed the Office of the Prime Minister demanding the release of the money President Museveni had pledged.
The traders accused government officials of repeatedly asking them to wait despite having completed the verification exercise.
During the protest, some traders questioned why the government had taken so long to release the compensation, arguing that their businesses had remained disrupted while they waited for financial support.
Police officers reportedly blocked the traders from staging a sit-in at the OPM premises, with some protesters being forced to leave the area.
The latest Cabinet approval is expected to bring relief to the verified beneficiaries while paving the way for broader interventions to address drainage and structural challenges that have repeatedly exposed businesses in Kampala’s central business district to flooding.
For the affected traders, however, the immediate expectation is that the approved funds will translate into actual payments, enabling them to rebuild their businesses and restore their livelihoods.
