More than a year after floods swept through Kampala’s central business district, destroying merchandise and crippling businesses, government has approved Shs18.99 billion in financial assistance for 1,841 traders who lost their goods.
The money, approved by Cabinet on November 9, is part of a Shs20 billion package announced by President Museveni to support traders whose businesses were affected by the October 30 and 31, 2025 floods.
The Minister for ICT and National Guidance, Justine Kasule Lumumba, announced the approval on Tuesday while addressing journalists at the Uganda Media Centre, saying the money would be provided as compassionate ex-gratia assistance.
“Ex-gratia means this is a payment made out of goodwill to help those affected without admitting a legal duty to pay,” Lumumba said.
The Shs18.9995 billion will benefit 1,841 traders whose names were verified following investigations into the losses suffered during the floods.
The disaster affected traders operating in several commercial buildings and St Balikuddembe Market, popularly known as Owino Market, where merchandise worth billions of shillings was destroyed after heavy rains caused water to inundate shops and business premises.
The affected premises include Nana Arcade, Totala Building, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Qualicel Mall, Freedom Centre, Nabukeera Plaza, Ssekaziga Arcade, Jesco Centre, Jamboole Arcade and Tuba Plaza, as well as Owino Market.
The approval brings some relief to traders who have endured months of uncertainty over the government’s promised assistance, with the verification of beneficiaries and conflicting lists delaying the release of the money.
In August, Prime Minister Robinah Nabbanja told Parliament that differences in lists submitted by the Uganda Revenue Authority, Kampala Capital City Authority (KCCA) and Kampala City Traders Association had complicated the compensation process.
The government had earlier struggled to harmonise the names of genuine beneficiaries before settling on the verified list.
Besides the money for individual traders, Cabinet approved Shs1.0005 billion for the Federation of Uganda Traders Associations (FUTA). Of this amount, Shs682.5 million will cater for the association’s operational expenses, while Shs318 million will go towards its revolving fund.
However, Cabinet’s latest decisions go beyond financial assistance, with government also moving to address some of the factors blamed for the flooding.
Lumumba said investigations had identified interference with stormwater drainage systems by property developers along Ssebaana Kizito and Allen roads, near Nakivubo Channel.
The investigations also found that silt, garbage, construction debris and illegally constructed pavements had blocked drainage outlets into the channel, preventing water from flowing freely and causing it to back up into surrounding buildings.
Cabinet has consequently directed traders operating in basement spaces originally designated for parking to vacate immediately, warning that converting such spaces into shops exposes traders and their merchandise to flooding.
Lumumba said the directive applies to all Kampala buildings where basement parking spaces have been converted into commercial premises, not just those affected by the 2025 floods.
The Office of the Prime Minister has been tasked with coordinating the implementation of the resolutions alongside KCCA, the ministries of Finance, Kampala, Water and Environment, Works and Transport, the National Environment Management Authority, National Water and Sewerage Corporation, Internal Security Organisation and FUTA, among other stakeholders.
The intervention follows President Museveni’s earlier commitment to compensate traders after meeting their representatives at his Kisozi farm in December 2025.
