The government has approved Shs18.9995 billion in ex-gratia payments for 1,841 traders whose businesses were affected by the October 30 and 31, 2025 floods in Kampala.
The decision was reached during a Cabinet meeting chaired by President Yoweri Museveni on Monday, November 9, 2026.
The Minister for ICT and National Guidance, Justine Kasule Lumumba, announced the decision on Tuesday while addressing journalists at the Uganda Media Centre in Kampala.
Lumumba said the money would go to traders whose businesses were verified as having suffered losses during the flooding, which affected commercial buildings around the Nakivubo Channel and St Balikuddembe Market, commonly known as Owino Market.
She said 1,841 traders from 13 affected arcades had been cleared to receive the assistance.
The affected buildings include Nana Arcade, Totala Building, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Freedom Centre, Nabukeera Plaza, Qualicel Mall, Ssekaziga Arcade, JesCo Centre, Jamboole Arcade and Tuba Plaza.
The government will distribute the money through a mobile money payment system to ensure that the verified beneficiaries receive their payments directly.
The compensation follows months of disagreements over the genuine number of traders who lost their merchandise during the floods.
Different organisations and traders’ representatives had submitted conflicting lists of beneficiaries, raising concerns that some people who had not suffered losses could benefit from the government money.
In addition to the compensation, cabinet approved Shs1 billion for the Federation of Uganda Traders Associations (FUTA), the umbrella organisation representing traders.
The money will be divided into two components. Shs682.5 million will cater for the association’s operational expenses, while Shs318 million will be the government’s contribution to its revolving fund.
The revolving fund is intended to provide financial support to traders through a system that allows beneficiaries to access and repay funds.
The compensation process had stalled because of disagreements over the number of genuine victims.
In August 2026, Prime Minister Robinah Nabbanja told Parliament that the Uganda Revenue Authority (URA), Kampala Capital City Authority (KCCA) and Kampala City Traders Association (KACITA) had submitted different lists of potential beneficiaries.
URA had submitted 360 names, KCCA 460, while KACITA presented 480 names.
The conflicting figures prompted government to involve the Internal Security Organisation (ISO) in verifying the affected traders and establishing a credible list.
The delay frustrated traders who had been waiting for government assistance since President Museveni pledged compensation following the disaster.
In December 2025, the president met leaders of the trading community at his Kisozi farm and assured them that government would compensate those who had suffered losses.
The latest cabinet decision is intended to bring the prolonged verification process to an end and allow the genuine victims to receive financial assistance.
Besides approving the compensation, cabinet directed the Prime Minister’s Office, the Ministry of Kampala Metropolitan Affairs, the Ministry of Works and Transport, Kampala Capital City Authority (KCCA) and the Ministry of Water and Environment to urgently address the drainage problems that contributed to the flooding.
The government also ordered traders operating in building basements designated for parking to vacate those spaces immediately.
Lumumba said some developers had converted basement parking areas into commercial shops, exposing traders and their merchandise to serious danger whenever floodwaters entered the buildings.
Cabinet directed the responsible agencies to restore the affected basements to their approved use and ensure that traders do not conduct business in locations considered unsafe.
