UGX 18B Approved to Compensate City Traders

Information minister Kasule Lumumba

F.K MALE: Government has approved Shs18.9995 billion in relief assistance for 1,841 traders affected by the floods that devastated parts of Kampala’s Central Business District (CBD) on November 30, 2025.

The announcement was made on Tuesday by the Minister for ICT and National Guidance, Justine Kasule Lumumba, while presenting Cabinet resolutions at the Uganda Media Centre.

Lumumba said the beneficiaries had been verified by security agencies, with the final list also incorporating traders from St. Balikuddembe Market, commonly known as Owino Market, who were equally affected by the floods.
However, the announcement has raised concerns among some traders at Container Village, who claim they were also affected by the flooding but were excluded from the compensation list.
Responding to their concerns, Lumumba advised the aggrieved traders to submit formal complaints to Kampala Capital City Authority (KCCA) and the Office of the Prime Minister (OPM) for verification and further consideration.
The latest approval marks a significant revision of earlier figures regarding the number of traders eligible for government assistance.
Initial reports indicated that only 737 traders had been verified as genuine victims and were expected to share a Shs20 billion relief package pledged by President Yoweri Kaguta Museveni following the flooding. The Internal Security Organisation (ISO) reportedly submitted the verified list to the Office of the Prime Minister after investigating claims involving more than 2,000 traders who had initially been presented as flood victims.
The verification exercise was intended to establish the genuine beneficiaries and ensure that the government assistance reached traders who had suffered actual losses. Additional Funding for Traders’ AssociationIn a related Cabinet resolution, government approved an additional Shs1.0005 billion to support the Federation of Uganda Traders Associations (FUTA), which participated in registering the affected traders.
According to Lumumba, Shs682.5 million of the allocation will cater for FUTA’s operational expenses, while Shs318 million will be provided as a government contribution to the association’s revolving fund. The funding is intended to support the association’s role in coordinating traders and facilitating interventions related to the recovery process.
Beyond the financial assistance, Cabinet also outlined interventions aimed at addressing the persistent flooding challenges in Kampala’s Central Business District. Lumumba mentioed that Cabinet also resolved that all traders having shops in the basements of the arcades to vacate those places with immediate effect following the start of the Elinino rains are expected to hit the country.
She stated that several arcades owners violated the contraction plans and occupation permits of the KCCA and turn basements of arcades designated to serve as parking space to shops. She also attributed part of the flooding to obstruction of storm water drainage channels by several commercial buildings and arcades, which she said interfered with the natural flow of rainwater.
She specifically cited Totala Arcade, Qualicell, French Plaza, Ssekaziga, City Plaza, Pentagon Plaza and Shree Indian Temple as buildings that had blocked stormwater drainage along Allen Road and Ssebaana Road. The government is expected to pursue interventions to restore the affected drainage channels and improve stormwater management in the city.
Kampala’s drainage challenges have remained a major concern, particularly during periods of heavy rainfall, when blocked drainage channels, inadequate infrastructure and encroachment on natural waterways contribute to flooding. The approved relief package is therefore expected to provide some financial support to affected traders as government considers longer-term measures to address the drainage challenges that continue to threaten businesses in the capital.

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