Uganda Government: Kampala Flood Compensation Approved for 1,841 Traders

• The Ugandan government approved Shs18.9995 billion in financial assistance for 1,841 traders affected by October 2025 floods in Kampala.
• This payment is categorized as compassionate ex-gratia assistance, meaning it does not constitute an admission of legal liability by the government.
• The decision follows months of demands and protests from traders whose businesses were severely impacted around the Nakivubo Channel and Owino Market.
• Cabinet also approved an additional Shs1 billion for the Federation of Uganda Traders Associations (FUTA, with Shs682.5 million for operations and Shs318 million for its revolving fund.
• Government investigations identified interference with stormwater drainage systems by property developers, blocked Nakivubo Channel outlets, and undersized culverts as primary causes of the flooding.

The Shs18.9995 billion allocated for the traders is explicitly categorized as compassionate ex-gratia assistance.

The Ugandan government has formally sanctioned a payment of Shs18.9995 billion, designated as financial aid for 1,841 traders in Kampala whose businesses suffered significant damage during the October 2025 floods. This decision, announced by Minister for ICT and National Guidance Justine Kasule Lumumba on Tuesday following a Cabinet meeting, comes after several months of persistent demands and protests from the affected business community regarding delayed compensation. The flash floods, which occurred on October 30 and 31, 2025, caused widespread inundation of commercial premises, particularly those situated around the Nakivubo Channel and St Balikuddembe Market, commonly known as Owino.

Traders, who lost substantial merchandise and property, had been vocal in their calls for government intervention, asserting that the losses had severely impacted their livelihoods and made recovery challenging. These demands culminated in protests at the Office of the Prime Minister just last week, as traders pressed for the fulfillment of previously indicated compensation commitments. The recent Cabinet approval addresses growing frustration over the time taken to identify eligible beneficiaries and disburse the promised assistance, marking a significant step in the Uganda government Kampala flood compensation efforts.

The Shs18.9995 billion allocated for the traders is explicitly categorized as compassionate ex-gratia assistance. This classification is crucial, as ex-gratia payments are voluntary disbursements made out of goodwill and do not imply any admission of legal liability on the part of the government. This distinction means that while the government is providing relief, it is not acknowledging a legal obligation for the damages incurred. The Cabinet meeting also approved additional funding for the Federation of Uganda Traders Associations (FUTA), allocating an extra Shs1 billion.

Of this supplementary FUTA additional funding, Shs682.5 million is earmarked for the association's operational expenses, while the remaining Shs318 million will serve as the government's contribution to its revolving fund, further supporting the Uganda traders flood relief fund initiatives. The floods primarily impacted 13 specific arcades and the Owino Market, including prominent locations such as Nana Arcade, Totala Building, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Qualicel Mall, Freedom Centre, Nabukeera Plaza, Ssekaziga Arcade, JesCo Centre, Jamboole Arcade, Tuba Plaza, and Shauriyako Building.

Beyond immediate financial aid, the Cabinet has endorsed a series of strategic interventions aimed at tackling the underlying causes of the recurrent flooding in Kampala's Central Business District and mitigating the likelihood of future incidents. Government investigations revealed that a primary factor contributing to the inundation was the interference with stormwater drainage systems by certain property developers. These issues were particularly prevalent along Ssebana Kizito and Allen roads, affecting properties adjacent to the critical Nakivubo Channel. Developers associated with buildings like Totala, Qualicel, French Plaza, Ssekaziga, City Baza, Pentagon, and Shree Indian Temple were specifically identified in connection with these drainage problems.

The investigations highlighted that drainage outlets into the Nakivubo Channel had been obstructed by an accumulation of silt, garbage, and debris, alongside illegally constructed pavements and plinth walls. These blockages prevented the free flow of water into the channel, causing it to back up and flood surrounding commercial premises. Further contributing factors included undersized underground culverts and drainage channels along key thoroughfares such as Nabugabo Road, Allen Road, Ben Kiwanuka Road, Luwum Street, and Ssebana Kizito Road. Inadequate weep holes for underground water to drain into the Nakivubo Channel, poor solid waste disposal practices, and insufficient management of construction debris by developers along the channel were also cited. Broader environmental degradation and the expansion of paved surfaces were identified as factors exacerbating stormwater runoff into low-lying urban areas, underscoring the severity of the Nakivubo Channel drainage issues.

The findings from the government's inquiry underscore significant questions regarding the management of Kampala's urban drainage infrastructure, particularly concerning the impact of commercial developments on established water channels. To ensure coordinated action, the Cabinet has assigned the Office of the Prime Minister (OPM) the responsibility of overseeing the implementation of all approved interventions. This includes not only the distribution of the flood compensation but also the execution of measures designed to prevent similar devastating floods in the future.

Lawyers representing businesses affected by the Kampala floods should advise clients that the Shs19bn payment is ex-gratia, meaning it does not constitute an admission of government liability and does not prevent pursuing claims against other parties, particularly property developers identified for drainage interference. Compliance officers in real estate or construction should review projects in Kampala's CBD for adherence to stormwater drainage regulations to mitigate potential future liability for flood damage.

Source: Original reporting via local Kampala sources.