Uganda's government has approved Shs18.9995 billion in financial assistance for 1,841 traders whose businesses were damaged in floods that hit Kampala on October 30 and 31, 2025. Minister for ICT and National Guidance Justine Kasule Lumumba announced the decision on Tuesday following a Cabinet meeting, according to an announcement at the Uganda Media Centre. The funds will be distributed as compassionate ex-gratia assistance, a form of voluntary payment made out of goodwill that does not constitute an admission of legal liability by government.
The decision comes after months of pressure from affected traders who lost merchandise and property when heavy rainfall triggered flash floods around Nakivubo Channel and St Balikuddembe Market, also known as Owino. Traders argued that the losses had crippled their businesses and left many struggling to recover. Their demands escalated into protests at the Office of the Prime Minister last week as they sought the fulfilment of government's compensation commitments. The floods principally affected 13 arcades and Owino Market, including Nana Arcade, Totala Building, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Qualicel Mall, Freedom Centre, Nabukeera Plaza, Ssekaziga Arcade, JesCo Centre, Jamboole Arcade and Tuba Plaza, as well as Shauriyako Building.
Cabinet also approved an additional Shs1 billion for the Federation of Uganda Traders Associations, with Shs682.5 million allocated for operational expenses and Shs318 million as government's contribution to its revolving fund. The approvals include strategic interventions to prevent future flooding. Government investigations found that drainage outlets into Nakivubo Channel had been blocked by accumulated silt, garbage and debris, as well as illegally constructed pavements and plinth walls. Interference with stormwater drainage systems by property developers along Ssebana Kizito and Allen roads was also identified, with buildings including Totala, Qualicel, French Plaza, Ssekaziga, City Baza, Pentagon and Shree Indian Temple among those assessed.
Additional drainage problems included undersized underground culverts and drainage channels along Nabugabo Road, Allen Road, Ben Kiwanuka Road, Luwum Street and Ssebana Kizito Road. Poor disposal of solid waste, inadequate management of construction debris and environmental degradation were also identified as contributing factors. The Office of the Prime Minister has been assigned responsibility for coordinating implementation of the interventions, working with the Ministry of Finance, Planning and Economic Development, Ministry of Kampala Metropolitan Affairs, Kampala Capital City Authority, Ministry of Water and Environment, National Environment Management Authority, National Water and Sewerage Corporation, Ministry of Works and Transport, Internal Security Organisation, FUTA and representatives of affected arcades.
For traders in Kampala's commercial district, this means access to compensation for business losses from the October 2025 floods, though implementation of the longer-term drainage improvements will determine whether similar incidents can be prevented.