Govt releases sh10b to compensate Kyotera oil palm PAPs

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The Government says it has released shillings 10 billion to compensate residents affected by the National Oil Palm Project (NOPP) in Sango Bay, Kyotera district.

This marks a significant step in addressing long-standing grievances linked to land acquisition for the project.

The compensation follows a directive from President Yoweri Museveni, which prompted the agriculture ministry (MAAIF), working jointly with the lands ministry, to carry out a comprehensive verification exercise to identify and validate legitimate project-affected persons (PAPs).

According to MAAIF, the shillings 10 billion released represents a part payment based on the Government Valuer’s report.

The total compensation value for affected persons in Sango Bay stands at shillings 16.2 billion, with the balance expected to be paid once additional funds are released by the Ministry of Finance.

So far, 126 PAPs have successfully received compensation. However, a MAAIF public relations officer said progress has been slowed by delays from some beneficiaries in submitting their banking details.

“PAPs are to promptly verify their bank accounts and submit the required information through the Kyotera district chief administrative officer so that their payments can be processed. The challenge is that many people have not submitted their details, yet the Government can only pay those who do,” the officer said.

The National Oil Palm Project is a flagship agricultural initiative aimed at boosting domestic edible oil production, improving farmer incomes, and reducing Uganda’s reliance on imports.

While the project has created economic opportunities, it has also raised concerns over land acquisition and compensation, making the current payments a critical milestone in restoring trust between the Government and affected communities. Officials said the compensation process will continue as funds become available.