Flood-affected Kampala traders will be compensated — Museveni

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The Government will compensate traders affected by the recent Kampala city floods for losses incurred, President Yoweri Museveni has said.

The President says the matter is not subject to debate.

“We are going to go through that report. We have to compensate you because you made losses. There are no arguments about that,” the President said.

He made the remarks on December 16, 2025, while meeting leaders of traders at his Kisozi Farm in Gomba district. They were led by John Kabanda, president of the Federation of Uganda Traders Association (FUTA).

President Museveni's remarks come in the wake of severe flooding that hit Kampala over a month ago, worsening an already fragile situation along the Nakivubo Channel. Barely three weeks after the October 31 downpour, another heavy rainfall around November 19–20 caused fresh flash floods in low-lying parts of the city, including the Container Village and the Queensway interchange.

Traders claim to have lost property worth billions. Together with the city officials, they attributed the flooding to ongoing construction works along the Nakivubo Channel, which narrowed key drainage pathways.

Addressing traders’ broader concerns, President Museveni also clarified the government's tax policy, particularly following recent engagements with young entrepreneurs whom he referred to as Gen Z.

“Some of the Gen Z told me they want to join the business but complain about taxes. I explained to them that our taxes are intentional, not accidental,” he said.

The President emphasised that taxation largely targets imported and luxury goods, not local trade.

“If you are selling bananas, there are no taxes—except occasional market dues. Taxes are mainly on imported products like perfumes and alcohol,” he explained.

President Museveni urged traders to embrace internal trade and production, stressing that import substitution remains a key pillar of Uganda’s economic strategy.

“If you don’t want to pay taxes, don’t import. We need taxes to run the economy. Go into internal distribution,” the President said, noting that increased local production would naturally reduce importation over time.

President Museveni also thanked traders for their continued support of the NRM and pledged to further engage their leaders to address outstanding issues.

Dialogue ove confrontation

On her part, presidential advisor on tax matters Kellen Kiconco commended Kampala traders for choosing dialogue over confrontation, describing them as key partners in revenue mobilisation and national stability.

“I appreciate these traders because they are our first tax collectors. When I first met them, they were planning to demonstrate across the country, but they chose dialogue instead of violence,” Kiconco said.

She thanked the traders for preserving the peace, which the President worked hard to secure, noting that they had documented their challenges and formally submitted them to the State House for consideration.

Kiconco further revealed that the traders had adopted a collective position to support President Museveni in the upcoming elections.

“They organised their issues, presented them formally, and told me that on January 15, 2025, they will vote for you,” she said.

On the other hand, Kabanda underscored peace and freedom of expression as the foundation of their businesses.

Kabanda also thanked the President for maintaining stability in the country despite challenges faced by the trading community.

He said traders trust the government’s structures and have already begun mobilisation efforts across the country, including Fort Portal, Mbarara, Masaka, Jinja and Mbale, with plans to intensify door-to-door engagement within Kampala.

“We are with you. Even those of us with small businesses are confident they will grow because of the peace and security you have provided,” Kabanda said.

He added that traders were aware of attempts by some groups to divert their intentions but reaffirmed their resolve to remain focused.

“We will not allow anyone to divert us,” he said.

Traders also thanked the President for the swift government response following the recent floods, noting that both the Minister for Kampala and the Prime Minister personally visited the affected areas.

Aman Kavuma, a trader who was affected by floods, recalled the President’s directive after the floods that traders’ concerns be addressed without resorting to lengthy court processes.

“We were affected, many shops were destroyed, and the names of flood victims were registered. We are waiting for your guidance because you brought peace,” Kavuma said.

Another flood victim, Allen Kisakye, testified that the floods destroyed all her property, underscoring the urgency of government intervention and compensation.

The event was attended by Kampala and metropolitan affairs minister Minsa Kabanda and Uganda Revenue Authority commissioner general John Musinguzi Rujoki.