Government has approved Shs18.8 billion in compassionate ex-gratia assistance for 1,841 verified traders whose businesses were affected by the October 2025 floods in Kampala.
The approval was made during the 16th Cabinet meeting held on Monday, November 9, 2026, with the funds intended to support traders who suffered losses following heavy rainfall that triggered flash floods in parts of Kampala’s Central Business District (CBD) on October 30 and 31, 2025.
Addressing journalists at the Uganda Media Centre on Tuesday, Minister of ICT and National Guidance Justine Kasule Lumumba said Cabinet had approved the money as compassionate assistance to the affected traders.
“Cabinet approved Shs18.8 billion in compassionate ex-gratia assistance for 1,841 verified traders affected by the Kampala floods of October 30 and 31, 2025,” Kasule Lumumba said.
She explained that the assistance would be provided as an ex-gratia payment, meaning Government was extending financial support as a goodwill gesture without admitting any legal obligation to compensate the affected businesses.
The floods mainly affected traders operating in 13 arcades and St Balikuddembe Market, commonly known as Owino Market.
The affected establishments include Nana Arcade, Total Building, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Qualicel Mall, Freedom Centre, Nabukeera Plaza, Ssekaziga Arcade, Jesco Centre, Jamboole Arcade, Tuba Plaza and Owino Market.
In addition to the ex-gratia assistance, Cabinet approved a further Shs1.0005 billion for the Federation of Uganda Traders Associations (FUTA). Of this amount, Shs682.5 million will cater for the federation’s operational expenses, while Shs318 million will go towards the Government’s contribution to FUTA’s Revolving Fund.
Kasule Lumumba also said Cabinet had approved strategic interventions to address the underlying causes of flooding in Kampala’s Central Business District and prevent or minimise the impact of similar incidents in the future.
Investigations into the October 2025 floods identified interference with stormwater drainage systems by some property developers along Ssebana and Allen roads, adjacent to Nakivubo Channel.
The properties cited in the investigations include Totala, Qualicel, French Plaza, Ssekaziga, City Baza, Pentagon and Shree Indian Temple.
The findings further established that drainage outlets into Nakivubo Channel had been obstructed by silt, garbage, debris and illegally constructed pavements and plinth walls. These obstructions reportedly restricted water flow, causing water to back up and flood surrounding areas.
The Government’s planned interventions are expected to address these drainage challenges and strengthen Kampala’s resilience against future flooding.
