Rival sugar firms strike deal to harmonise trade in Bunyoro sub-region

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Masindi-based Kinyara Sugar Limited has signed a Memorandum of Understanding (MoU) with Victoria Sugar Limited aimed at harmonising trade practices in the Bunyoro sub-region.

Among other issues, the MoU seeks to address rampant sugarcane theft in Bunyoro, which is said to have greatly affected sugarcane farmers, millers, workers and the stability of the sugar value chain.

State minister for youth and children affairs Balaam Barugahara. (Credit: Eddie Ssejjoba)

The outgoing Minister of State for Youth and Children Affairs, Balaam Barugahara Ateenyi, mediated between the two companies in what he described as constructive months-long discussions that culminated in the signing of the agreement at his office at the Ministry of Gender, Labour and Social Development in Kampala on May 25, 2026.

State minister for youth and children affairs Balaam Barugahara (middle) brokered the MOU between Kinyara and Victoria in his office. (Credit: Eddie Ssejjoba)

State minister for youth and children affairs Balaam Barugahara (middle) brokered the MOU between Kinyara and Victoria in his office. (Credit: Eddie Ssejjoba)

Rajbir Singh Rai, the director of Kinyara Sugar Limited, signed the documents on behalf of his company, while Jiyani Alpesh, the director of the Luwero-based Victoria Sugar Limited, represented and signed on behalf of his company. The minister also appended his signature to the agreement as a witness.

The MoU is expected to end a long-standing dispute and rivalry between the two key players in the sugarcane sector in Bunyoro, which has often led to court battles, demonstrations and huge losses for hundreds of farmers whose sugarcane frequently remained unsold due to unresolved disputes.

“As the outgoing minister of state in charge of the young people who form the biggest percentage of Uganda’s labour force, I witnessed and mediated a Memorandum of Understanding between some of Uganda’s major employers and job creators, that is Kinyara Sugar Limited and Victoria Sugar Limited,” he said in a statement after the signing.

He described the meetings that culminated in the signing of the MoU as constructive and held over the past couple of months.

According to the minister, both parties committed themselves to strengthening cooperation, promoting fair trade practices, protecting farmers’ interests and ensuring harmony within the sugar sector moving forward.

“I warmly welcome this initiative as an important step towards the growth and development of the sugar industry in Uganda,” he stated.

He added, “Dialogue, cooperation, and harmony remain key in addressing challenges affecting the sector and farmers in Bunyoro.”

Both directors left smiling, hopeful that the agreement would be respected by both parties.