Court to hear traders’ lawsuit over lost property in floods

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Court proceedings are set to begin Thursday, November 20, 2025, as traders from Kampala City take legal action over the devastating losses they incurred in the recent floods.

Led by Godfrey Katongole, Chairperson of the Uganda National Traders’ Alliance (UNATA), a group of traders, along with about 300 victims, filed a lawsuit in the Civil Division of the High Court on November 3, 2025.

The traders are seeking compensation from businessman Hamis Kiggundu and his company, Kiham Enterprises (U) Ltd, for the damage caused by floods that ravaged several arcades along the Nakivubo Channel.

The traders accuse Kiham Enterprises of carrying out construction activities that allegedly obstructed the Nakivubo drainage channel, leading to severe flooding that destroyed goods worth billions of shillings.

They are demanding that the court halt all ongoing construction works by Kiham Enterprises and order the company to compensate the affected traders for their losses.

They are also calling on city authorities to urgently restore the drainage system and implement long-term flood management measures to prevent such disasters in the future.

Allegations against Kiham Enterprises

In their petition, the traders claim that the construction of commercial buildings and the dumping of soil near the Nakivubo Channel by Kiham Enterprises have contributed to the flooding. They argue that these activities deviated from approved plans, obstructing the drainage system and exacerbating the effects of the floods.

Legal representatives for the traders, Kasule Mpologoma and Nico Kayongo of Luzige, Lubega, Kavuma & Co. Advocates, are also calling for an independent technical review of Kiham Enterprises' redevelopment works.

They further assert that the company has proceeded with its activities without the necessary environmental and construction approvals from Kampala Capital City Authority (KCCA) and the National Environment Management Authority (NEMA), both of which have been named in the lawsuit for alleged negligence.

Devastating impact on traders’ businesses

The floods have had a catastrophic impact on many traders, particularly those whose businesses are located in the basements and first floors of arcades along the Nakivubo Channel.

These areas are often the most expensive trading spaces downtown, and many traders had invested heavily in stock for the holiday season, only to see their goods destroyed by the floods.

Several traders are now facing financial ruin, with many having purchased goods on credit, further exacerbating an already difficult year marked by high taxes and sluggish sales. 

Appeals for government support

In addition to their legal action, traders’ leaders such as Edward Ntale, Chairperson of the United Arcades Traders and Entrepreneurs Association (UATEA), and Thadeus Musoke, Chairperson of the National Entrepreneurs and Traders’ Association (NENTRA), have appealed to the government to establish an emergency recovery fund to assist those affected.

“The government must step in with timely and adequate support to help traders recover and minimise the economic impact of this disaster,” Musoke said in a recent statement. Ntale also expressed concern that without intervention, many small businesses might be forced to close permanently due to the severity of their losses.

The Minister for Kampala Capital City and Metropolitan Affairs, Minsa Kabanda, recently stated that the government was working to register the affected traders, collecting details such as shop numbers and business types, to begin the compensation process.

As court proceedings begin, the traders hope that the judicial system will provide the accountability and compensation they seek, while also urging government authorities to take immediate action to restore the drainage system and prevent future flooding disasters.