Govt earmarks sh120b for kingdoms, ranchers

KAMPALA - Kingdoms and ranchers who have been demanding arrears from the Government can now breathe a sigh of relief after the allocation of sh120b to clear the debt. 

Finance state minister (general duties) Henry Musasizi told Parliament’s budget committee that in the next financial year (2025/26), sh120b has been set aside to settle compensation claims for kingdoms, ranchers, Kampala Archdiocese for Nsambya Police land, as well as Toro kingdom and Mityana Tea Company, among others. 

Musasizi informed the committee, chaired by Kachumbala County MP Patrick Isiagi, that the money is part of the sh347.7b that is required to settle the claims. 

He said sh90b of the total funds for compensation shall clear the arrears, and the rest will be shared accordingly. “All kingdoms, ranchers, Kampala Archdiocese and others will share the balance,” he said.

State minister for finance Henry Musasizi

Buganda MPs want breakdown 

MPs from the central region put Musasizi to task to explain the compensation claim for Buganda kingdom. “We want to be very clear on where the money is going. 

There has been a trend of generalising everything under kingdoms and ranchers; we need specifics. If this land is strategic, buy it. Or at least pay rent, which they don’t,” Butambala County MP Muwanga Kivumbi, also the chairperson of the Buganda Parliamentary Caucus, said. 

Kivumbi added that the situation has gone on for too long without a structured resolution to clear the sh500b debt demanded by Buganda kingdom. 

Musasizi said the Government was aware of the broader arrears, adding that the total verified compensation claim for Buganda is sh160b. He acknowledged Buganda kingdom’s claim and expressed willingness to include it in the broader payment plan. 

“If the arrears are verified, we may not be able to pay all the sh160b at ago. It will be spread over the years, but we are committed to settling them in the medium term,” Musasizi said.

Butambala County MP Muwanga Kivumbi, also the chairperson of the Buganda Parliamentary Caucus.

LOP lays out figures 

Last week, a heated debate erupted in Parliament when the Nakawa West lawmaker and Leader of Opposition in Parliament (LOP), Joel Ssenyonyi, accused the Government of normalising a culture of occupying vital strategic assets without compensating landlords, “a vice that undermines constitutional provisions and frustrates the cultural institution’s development drive”. 

“The kingdom is engaged in several projects such as building schools, hospitals, universities and tertiary institutions. Recently, a hospital was opened in commemoration of the Kabaka’s 70th birthday. The kingdom recently gave out tractors to all 18 counties of Buganda. When the Government holds back this money, it frustrates these developmental projects,” Ssenyonyi said. 

He pointed out that 12 years ago, when the Government returned several properties to Buganda, it was expected to remit rent for those it continued to occupy. 

Alternatively, Ssenyonyi said they should have acquired these properties under Article 26. 

In such a scenario, the legal provision requires that the landlord be paid adequate and prompt compensation. 

He listed Buganda’s properties still occupied by the Government and they include Makindye Military Barracks, General Court Martial, Kigo Prison, Katabi and Bukakata Air Force School land, over 70 prisons originally built by the kingdom, local government offices and headquarters, Mbuya Barracks land and other areas used for electricity transmission lines. 

“The money that the Government owes Buganda kingdom through these and other properties is sh529.7b. However, the chief government valuer has so far verified sh160b of this. But even this sh160b has not been paid to date despite numerous reminders,” Ssenyonyi said.

Nakawa West lawmaker and Leader of Opposition in Parliament (LOP), Joel Ssenyonyi.

LOP gets response 

Attorney General Kiryowa Kiwanuka assured the MPs that the Government is working to settle the debt. “What I can assure my colleagues from Buganda, such as myself, is that this matter is being handled. Even the figure you are quoting, which has been verified, is not complete. So, the process is ongoing, and we are handling this matter,” Kiryowa added. 

“I am fully seized with this matter because I chair that committee personally. Unless I hear from the people you speak of whom I engage regularly on these issues. I would rather you leave that to us because I have not received any complaint from the kingdom on how I am handling this matter,” Kiryowa said. 

Deputy Speaker Thomas Tayebwa noted that similar concerns have also been raised by Omukama Oyo Nyimba Kabamba Iguru Rukidi IV of Toro kingdom and Obusinga Bwa Rwenzururu, led by Charles Wesley Mumbere.

Better planning demanded 

During the committee meeting, Musasizi said mechanisms had been put in place to prevent the further accumulation of arrears, including holding accounting officers accountable for not respecting public finance laws.

During the committee meeting, Paul Omara (Otuke County) commended the ministry for raising the domestic arrears provision from sh200b to sh1.4 trillion in line with Parliament’s recommendations. 

Attorney General Kiryowa Kiwanuka

“Thank you for listening and moving the figure,” he said. The committee deputy chairperson, Remegio Achia (Pian County), described the finance ministry’s shift in tone as “encouraging”, especially after last year’s tense standoff with Parliament. 

“Many recommendations we made last year have been considered this time. 

“For instance, sh100b for medical supplies at health centres has been included, and institutions like the Uganda National Bureau of Standards have been given money for staffing, laboratories and vehicles,” Achia said. 

He added that support to the Uganda Development Corporation and embassies under a new commercial diplomacy strategy have been improved, enabling embassies to promote Ugandan products abroad.

Recycled budget items

Concerns emerged over what MPs described as “recycled” budget items. The budget committee deputy chairperson, Pian County MP Remegio Achia, flagged allocations from the January 2025 supplementary budget, such as sh50b for railway rehabilitation and sh25.7b for lands ministry projects, appearing in the new budget without changes in justification.

“That kind of repetition makes you wonder whether they think we have lost our minds between January and April,” Achia said. “It’s the same text, word for word.” Finance state minister (general duties) Henry Musasizi admitted the oversight and promised further scrutiny.