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

NAMAYINGO - A deepening licensing deadlock is pushing sugarcane farmers in Namayingo district 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.

Others are staring at financial catastrophe as the multi-billion shilling CN Sugar Factory remains non-operational, leaving thousands of acres of mature cane to rot or burn in the fields.

Bound by contracts, buried by delays

The crisis stems from a 2024 agreement between local out-growers and CN Sugar. While the factory provided essential inputs like fertilisers and seedlings, the signed Memorandum of Understanding (MoU) now acts as a golden cage.

A bitter harvest

The crisis has reached a breaking point, with farmers reporting significant losses due to "accidental" fires in plantations and the natural deterioration of over-mature cane.

According to Twalik Isabirye, the chairperson of the sugarcane outgrowers in Namayingo, many farmers are now trapped in a cycle of debt.

"Many of us took loans from banks to plant this cane based on the licenses issued by the trade ministry. Now, we have nowhere to take the harvest. Those who received inputs from the factory are even worse off, as they are contractually barred from selling to other millers," Isabirye says.

Isabirye adds that farmers are unable to sell their cane elsewhere due to an MOU signed with CN Sugar factory, adding that the agreement binds them to supply exclusively to the factory, which had provided incentives such as fertilizers and seedlings.
  
“We rented land for six years, but two years have already passed, and we are still waiting to sell our cane,” he says.

The farmers noted that since the factory was established, it brought hope for jobs and local development, but the current operational stalemate has turned that hope into a double tragedy.

Broken promises and silence

The community’s frustration is compounded by what they perceive as a lack of government follow-through.

Mark Simunyu, an outgrower from Kifuyo village, recalled that the Prime Minister was expected to officially commission the factory’s operations in December last year, but she did not attend.

"Everything went silent after that. Now, we hear rumours of negotiations to relocate the factory—we are asking why? If the law regarding the 25km radius was followed, why is there a stumbling block now? We appeal to the President to ensure his directives are implemented so we can survive,” Siminyu said.

He said that the financial strain is mounting because some farmers leased land for six years, but with two years already lost without any sales, debts are accumulating.

Siminyu explained that farmers are charged between shillings 800,000 and shillings 900,000 by truck drivers to transport sugarcane to mills in Bugiri, Mayuge, or Jinja, adding that with such high transport costs, it is nearly impossible to break even.

Regulatory stumbling blocks

The factory's troubles stem from a complex web of legal and regulatory hurdles:
Licensing Issues: The trade ministry previously revoked the factory’s ‘no objection’ certificate, citing a failure to establish a 500-hectare nucleus estate.

Zoning Disputes: Existing millers in Busoga region have challenged the factory’s location, citing the Sugar Act’s zoning policies.

Sugar Council Review: As of February 2026, the Sugar Council is reportedly deliberating on findings from a recent inspection to determine if the mill can finally be granted an operational license.

A plea for intervention

Peterson Mubiru, the chairperson of outgrowers in Kamuli district, joined the call for action, urging trade minister Francis Mwebesa to stop looking on while investors and farmers suffer.

"We call upon Minister Mwebesa and the Sugar Council to step in and remove the stumbling block so that CN Sugar Factory starts work because sugarcane growers are in debts with loans from banks".  

He said the farmers are now planning a peaceful march to the Prime Minister’s office to seek clarity.

They maintain that as loyal supporters of the Government, they deserve a ‘gift’ in the form of the factory's opening to safeguard their livelihoods ahead of the 2026 economic challenges.

The growing frustration has prompted appeals to President Museveni for swift intervention.

Farmers argue that their strong electoral support for the President in the recent elections warrants urgent government action.

They said they supported President Museveni overwhelmingly with 75% votes in Namayingo in the just-concluded elections, and they are now asking him to intervene and ensure CN Sugar begins operations before it is too late.

Farmers also noted that CN Sugar’s operations could generate much-needed employment for local youth, many of whom previously relied on fishing for their livelihoods.

The road ahead

While addressing a meeting of Sugarcane outgrowers at Kifuyo village in Namayingo district on February 13, 2026, Namayingo’s Resident District Commissioner (RDC) Eva Kwesiga confirmed that the matter is with the Sugar Council, which was scheduled to deliberate on findings.

"If the Sugar Council does not act, we will go directly to the Prime Minister’s office and hand over the farmers’ petition to her," Kwesiga warned during the community meeting in Kifuyo Village.

Background

On August 9th, 2024, Third Deputy Prime Minister Rukia Isanga Nakadama represented Vice-President Maj. (Rtd) Jessica Alupo at a ceremony of laying a foundation stone for the construction of CN Sugar Ltd at Kifuyo village in Namayingo district.

Nakadama hailed the investors for their investment, saying it will create more jobs for the youth in Namayingo and Busoga sub-region at large. 

Under the Sugar Act, a new sugar factory must have at least 500 hectares of sugarcane, valid land titles, and formal contracts with out-growers to qualify for a license.

CN Sugar’s proximity to Bugiri Sugar Factory sparked concerns among some local millers, who argue that it could trigger unhealthy competition for limited cane supply.
Although the Sugar Act requires a minimum distance of 25 kilometers between factories, CN Sugar is located 37km from Bugiri Sugar Factory.

Despite objections, Namayingo out-growers insist that the factory’s opening is critical to safeguarding their livelihoods.