Government Approves Shs19bn for 1,841 Traders Affected by Kampala Floods

What the report says

Uganda’s Cabinet has approved Shs18.9995 billion in ex-gratia support for 1,841 verified traders whose businesses were hit by the October 2025 floods in Kampala. The announcement was made by ICT and National Guidance Minister Justine Kasule Lumumba at the Uganda Media Centre after a Cabinet meeting that also endorsed extra funding for the Federation of Uganda Traders Associations (FUTA) and measures to tackle drainage problems linked to the flooding.

According to the report by Nile Post, the compensation follows months of pressure from traders who said the heavy rains on October 30 and 31 flooded commercial areas around Nakivubo Channel and St Balikuddembe Market, also known as Owino. The affected premises included several arcades and trading centres in the city centre. The government said the payment is compassionate assistance and does not amount to an admission of legal liability.

Cabinet also approved Shs1 billion for FUTA, with part of the money earmarked for operating costs and the rest for a revolving fund. Beyond the cash support, officials said the plan includes interventions to address blocked drainage outlets, undersized culverts, waste buildup and other infrastructure problems that worsened the floods. The Office of the Prime Minister will coordinate implementation with agencies including KCCA, the Ministry of Finance, NEMA, NWSC and others.

The decision is significant because it combines short-term relief for affected traders with broader efforts to reduce flood risks in Kampala’s Central Business District. More generally, urban flooding in fast-growing cities is often tied to drainage capacity, waste management and development near waterways, issues that the government says this response is meant to confront.