Flood-hit Kampala traders urge fast Shs20bn compensation

3 July 2026, 3:22 pm

By Ronald Ssemagonja

Traders affected by the October 2025 floods in Kampala have appealed to the government to expedite the payment of the promised Shs20 billion compensation, saying many are still struggling to recover from their losses.

The appeal was made during a meeting in Kampala attended by leaders of the Federation of Uganda Traders Association, traders and government officials, who reviewed progress on the compensation process.

FUTA President John Kabanda said more than 2,000 traders operating in 21 commercial buildings, including Pentagon City, Premier Centre, Capital Centre, French Plaza, Ham Shopping Mall, Qualicel Bus Terminal and Owino Market, lost goods during the floods.

Kabanda thanked the government for committing to compensate the affected traders but urged the relevant authorities to fast-track the final approval process.

“We appreciate the Government’s commitment to compensating the affected traders. We request those responsible for approving the final documents to expedite the process so that traders can receive their funds. We have been informed that the money is available, and we appeal for patience as the process is concluded,” Kabanda said.

He added that although he was not personally affected by the floods, he had taken up the matter on behalf of traders to ensure they receive the promised support.

Some of the affected traders shared the difficulties they have faced while waiting for compensation.

Yusuf Sesbagala, a trader from Totala Building, said he is struggling to repay loans taken to finance his business and risks losing his home to money lenders.

Other traders, including Nalwada Rebecca and Nabuyuga Margaret, appealed to the government to release the funds without further delay, saying many businesses have yet to recover since the disaster.

Kampala Resident City Commissioner (RCC) Lule Mawuya expressed sympathy with the traders and apologised for the delays in the compensation process. He said the exercise had been slowed down by discrepancies in the lists of beneficiaries but assured traders that the matter was being resolved.

“Security agencies informed me that there are three different lists that must first be harmonised. By next week, I will update you on the progress. I want to assure you that the Shs20 billion is available, and by the end of this month, this matter should be concluded. However, only traders who were genuinely affected by the floods will be compensated,” Mawuya said.

He also commended traders for continuing to fulfil their tax obligations despite the challenges and urged them to remain patient as the process is finalised.

The Deputy RCC for Kampala Central Division, Shafik Nsubuga, also apologised to the affected traders on behalf of the government and encouraged them to channel their grievances through the appropriate offices rather than staging protests at the homes of public officials.

“We understand your pain and we are committed to ensuring this matter is resolved. If you have concerns, use the designated government offices instead of going to officials’ homes, as this could expose you to legal action,” Nsubuga said.

The government announced the Shs20 billion compensation package following the devastating floods that hit Kampala in October last year, destroying merchandise in several arcades and markets and leaving thousands of traders counting heavy losses.