Namayingo leaders, farmers petition govt over sugar factory closure

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NAMAYINGO — Leaders and sugarcane farmers in Namayingo district have petitioned the Government, calling for intervention in the stalled Buyinja sub-county-based CN Sugar factory.

The petitioners say the delay in the operationalisation of the factory is threatening livelihoods and investment in the area.

The delay occasioned by a deepening licensing deadlock is pushing sugarcane farmers to the brink of financial ruin. Despite having fields of mature cane ready for harvest, out-growers for the CN Sugar Factory are watching their livelihoods dry up as the facility remains barred from starting operations.

The situation has become so dire that some farmers have started the heartbreaking task of clearing their fields of over-mature cane, pleading for the government to step in before their losses become irreversible.

👉 Namayingo cane crisis: Red tape leaves farmers with rotting crops, rising debt

The appeal was made on March 10, 2026, during a meeting of district leaders and farmers at Banda Secondary School in Banda sub-county, where they resolved to push for the reopening of CN factory in Kifuyo village.

Patrick Mudhungu (with a mic) speaking during the meeting at Banda Secondary School. In the yellow T-shirt is the LC5 chairperson, Ronald Sanya, together with cane farmers. (Credit: Betty Angatai)

District LC5 chairperson Ronald Sanya asked the Government to address the concerns of farmers who had already invested in sugarcane growing following the planned establishment of the factory in the area. 

“We welcomed the establishment of the factory with the expectation that it would help tackle the high unemployment in Namayingo by creating jobs and offering market for farmers,” Sanya said.

Were the approvals in vain?

According to Sanya, the factory had obtained approvals from several government agencies before construction began.

He added that the district council later passed a resolution allowing the investors to establish the project, which had reached about 90% completion before it was halted.

Sanya said over 2,000 farmers had already registered to supply sugarcane to the factory, while the company had also established a demonstration farm covering more than 1,300 acres.

However, he said the project stalled after it was challenged by the Uganda Sugar Manufacturers Association, allegedly on grounds related to industry regulations.

Namayingo residents have traditionally relied on fishing as their main source of income. However, leaders say the sector has declined in recent years due to dwindling fish stocks and tighter registrations by the UPDF Fisheries Protection Unit.

Abdullah Twaha Kauta, a farmer, said the sugar factory was seen as an alternative economic lifeline.

“About 70% of our people depend on fishing, but the sector has declined. The factory was expected to create employment and improve livelihoods,” Kauta said.

Swaliki Isabirye, the chairperson of Namayingo Sugarcane Farmers Association, said farmers had already planted 38,000 acres of cane, anticipating a ready market from the nearby factory.

"We started growing sugarcane when the factory was under construction, expecting it to provide a ready market. Now farmers are stranded because transporting cane to distant factories is too costly,” Isabirye said.

Isabirye said farmers currently pay between shillings 800,000 and one million to transport their cane to sugar factories in the districts of Mayuge or Bugiri.

“We had agreements with CN Sugar to supply them with our cane but taking it to other factories has become a real challenge. The cost of transportation is also very high.”

“We had made agreements with CN Sugar to sell them our cane. Now taking to other factories is a real struggle and besides that, transportation is costing us a lot.”

Lazarus Namaddu, the Chairperson of Uganda National Sugarcane Growers Association and Cooperative Union, called on the Government to intervene and ensure farmers’ interests are protected.

Meanwhile, Busoga sugarcane farmers' leader Patrick Mudhungu appealed to President Yoweri Museveni to intervene in the matter, saying competition among sugar factories benefits farmers.

Currently, CN Sugar is facing opposition from other established sugar producers, including over licensing and alleged proximity to their mills.

However, Naboth Kusiima, the manager of Bugiri Sugar factory, denied claims that the company was behind attempts to block CN Sugar’s operations in Namayingo.

“No one is blocking their operations. The issue revolves around compliance with zoning regulations within the sugar industry. Under Uganda’s sugar sector policy framework, new sugar mills are required to maintain a minimum distance of 25 kilometres from the existing factories to protect cane catchment areas and also prevent destructive competition,” he said.  

Kusiima added that CN sugar, which is located about 19 kilometres from Bugiri sugar factory, risks encroaching on the established cane supply zones of existing mills.

According to Isa Budhugo, the Busoga sugarcane farmers’ representative on the Sugar Council, CN sugar factory matter will be resolved during a council meeting this month.