Government has earmarked Shs20 billion to compensate Kampala business owners whose merchandise was destroyed during the devastating floods that hit the city last year.
Prime Minister Robinah Nabbanja confirmed the allocation while addressing Parliament, saying only eligible traders who suffered losses during the flash floods that swept through business premises in Kampala’s Central Business District in October 2025 will receive compensation.
Nabbanja was responding to a matter of national importance raised by Kampala District Woman MP Shamim Malende, who sought an update on the government’s plans to comprehensively address persistent flooding in the capital.
According to the Prime Minister, 737 traders have so far been vetted and approved for compensation following a verification exercise conducted by the Internal Security Organisation (ISO) and the Office of the Prime Minister.
However, the compensation process has been delayed due to discrepancies in the number of affected traders submitted by the Kampala City Traders Association (KACITA), Kampala Capital City Authority (KCCA), and landlords.
To ensure transparency, government has introduced stricter verification requirements.
Eligible claimants must provide proof of income tax compliance, a valid Uganda Revenue Authority (URA) Tax Identification Number (TIN), stock or sales receipts, and a valid KCCA trading licence.
Officials say these requirements have made it difficult for some small-scale tenants to qualify for compensation.
On measures to address flooding, Nabbanja said government has constructed and commissioned 18 drainage channels across Kampala, a move she said has significantly reduced flooding in several parts of the city.
By Olivia Nabaggala
7th Aug 2026
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