Govt earmarks sh20bn for long-awaited Luwero fruit factory

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The people of Luwero have cause to smile after the government earmarked sh20 billion for the construction of their long-awaited fruit processing factory, which they were promised over 20 years ago.

Industry state minister David Bahati has revealed that sh20bn has been allocated in the next financial year’s budget. He made the disclosure on April 4, 2026, while officiating the consecration of George Wilson Sekaggo as Bishop of the Luweero-based North Buganda Field at Luweero SDA Church.

"The government has in the 2026/27 financial year budget allocated sh20 billion to establish a pineapple processing factory in Luwero, to support farmers to reduce post-harvest losses," Bahati said.

Minister Bahati flanked by Nakasongola MP Noah Mutebi at the function. (Photo by Frederick Kiwanuka)

Bahati said the construction of the factory is in line with the government’s goal to uplift people’s livelihoods.

Background

The factory, which the government promised to construct in 1998, was meant to process locally abundant pineapples and mangoes into concentrates and ready-to-drink juice.

However, the prolonged delay in implementing the project had made the people of Luwero lose hope of realising the government's pledge.

In 2012, President Yoweri Museveni restored hope when he directed the Uganda Development Corporation (UDC) to undertake the project in a move to provide a stable market for the abundant pineapples grown in the area.

This was followed by a feasibility study undertaken by UDC in 2013 aimed at promoting value addition to locally abundant pineapples.

Luwero District Land Board chairman Sam Mulwana said the district local government responded by availing 10 acres of free land at Kyevunze village near Luwero town, which UDC has failed to utilise for over 10 years.

Luwero District is among the leading producers of pineapples in the country, with most of the produce sold in local markets and some in Kampala.

The proposed project follows earlier unsuccessful attempts by the government to fulfil President Museveni’s 1998 pledge of constructing the factory.

Earlier efforts

In 2009, the government attempted to start a joint venture with Natural Uganda, a group of pineapple farmers under the Kasana-Luweero Diocese, and Karl Pirsch, an Austrian investor, to process organic pineapples for export.

The government went ahead to buy five acres of land worth sh115m in Luwero Town Council.

However, the sh1bn project did not take off due to a communication breakdown among the implementers.

According to the proposal, the plant was to process organic pineapples for export and was to be implemented by Natural Uganda, a co-operative entity under the Kasana-Luweero Diocese, whose membership comprises pineapple farmers in Luwero and investor Pirsch. The Austrian later pulled out due to unknown reasons.

During that time, the government bought land worth about sh115m for the purpose, but the land has since been taken over by encroachers.

Gen. Saleh tries to intervene

In 2014, Salim Saleh tried to fill the gap when he started the Bulemeezi 2014 tomato and fruit factory, which President Museveni officially commissioned on February 17, 2014.

The factory, located at Namunkekeera in Kapeeka subcounty, Nakaseke, was, however, forced to close three years later due to losses.

According to one of the company directors, Tonnie Kamwesiga, the products from the factory were only selling in rural Nakaseke and failed to penetrate the lucrative Kampala market because of the refusal by the Uganda National Bureau of Standards to approve the quality of the products.