256 Newsroom — Uganda's Digital News Infrastructure
Business · Luweero

Grain traders block PRO factory over Shs2.5bn debt

Share
Grain traders block PRO factory over Shs2.5bn debt
Image · Nile Post

What the report says

More than 70 grain traders blocked the main entrance to PRO factory in Luweero District, Uganda, to press for payment they say is owed for grain supplied to the company. According to Nile Post, the disruption halted operations at the alcohol manufacturer after traders parked trucks at the gate and prevented vehicles from entering or leaving the site.

The traders said they are owed more than Shs2.5 billion for over 3,000 tonnes of grain supplied since May 2026, much of it routed through contractors including Limwell. One trader, Jamadah Lubega, said he personally is owed more than Shs100 million and described pressure from bank loans taken to finance the grain purchases. The report says the traders had repeatedly sought payment before taking their protest to the factory.

PRO management did not directly negotiate with the traders and instead told them to pursue the contractors they had dealt with. As the disagreement escalated, a representative of Limwell arrived and was confronted by the traders. Factory staff tried to reach senior management, while police and district security officials were called in to contain the situation.

Luweero Deputy Resident District Commissioner Abel Bakunda later met the parties in a closed-door discussion and urged the traders to give the company time to address the matter. The dispute highlights cash-flow risks in contract farming and grain supply chains, especially where farmers and traders rely on intermediaries to deliver produce to large processors.

Read the full report at Nile Post →

Loading debate for this article…

Other publishers covering this story

No additional verified coverage is currently clustered with this report.

Related reporting