Sh175b interest-free loans earmarked for large scale commercial farmers

KAMPALA - Farmers who farm on 10 acres and above are to benefit from the shillings 175 billion budget that has been set aside by the Government next financial year. 

According to finance minister Matia Kasaija, the shillings 175 billion facility will allow large scale farmers to increase production on their farms to ensure that there is enough food for domestic and export markets. 

To access the money, Kasaija said that the money will be accessed through financial institutions, including Post Bank, Housing Finance Bank, and Pride Bank Ltd.

He made the revelation while reading the budget at the Kololo Ceremonial Grounds in Kampala city on Thursday, June 12, 2025.

To further promote agriculture productivity, Kasaija said through government support, the National Agriculture research Organisation was supported to establish an Aflasafe manufacturing facility, to eliminate aflatoxin contamination in grains.

The facility, which has a capacity to clean up to five tonnes of produce per hour, will save the country an estimated $38 million per year, which is lost in export rejections due to aflatoxins but also to save Ugandans from aflatoxin-induced cancers.

To encourage value addition, he explained that eleven agro-processing and storage facilities have been constructed in different parts of the country, to add value to different crops.

These include Rwimi rice processing facility in Bunyangabu district; Kasina Maize Processing Facility in Kyenjojo; Kigoyera maize processing facility in Kyenjojo; Itojo maize and rice processing facility in Ntoroko; Nombe coffee processing facility in Ntoroko; Apala Oil Seed Processing Facility in Alebtong; Gatyanga Coffee Processing Facility in Bunyangabu; Ocorimongin Rice Processing Facility in Katakwi; Kajamaka Rice Processing Facility in Kumi; Kikwata Coffee Processing Facility in Nakaseke; and Kiwoko Maize Processing Facility in Nakaseke, among others.