Kampala Traders Affected by Flood to receive Compensation

Kampala traders affected by the recent floods will receive compensation for losses incurred says President Yoweri Kaguta Museveni

The President made these remarks while meeting leaders of traders at his Kisozi Farm. They were led by Mr. John Kabanda, president of the Federation of Uganda Traders Association (FUTA).

President Museveni's remarks come in the wake of severe flooding that hit Kampala over a month ago, worsening an already fragile situation along the Nakivubo Channel. Barely three weeks after the October 31 downpour, another heavy rainfall around November 19–20 caused fresh flash floods in low-lying parts of the city, including the Container Village and the Queensway interchange.

Traders claim to have lost property worth billions. Together with the city officials, they attributed the flooding to ongoing construction works along the Nakivubo Channel, which narrowed key drainage pathways.

Addressing traders’ broader concerns, President Museveni also clarified the government's tax policy, particularly following recent engagements with young entrepreneurs who he referred to as Gen Z.

The President emphasized that taxation largely targets imported and luxury goods, not local trade.

“If you are selling bananas, there are no taxes—except occasional market dues. Taxes are mainly on imported products like perfumes and alcohol,” he explained.

President Museveni urged traders to embrace internal trade and production, stressing that import substitution remains a key pillar of Uganda’s economic strategy.

“If you don’t want to pay taxes, don’t import. We need taxes to run the economy. Go into internal distribution,” the President said, noting that increased local production would naturally reduce importation over time.

President Museveni also thanked traders for their continued support of the NRM and pledged to further engage their leaders to address outstanding issues.

On her part, Ms. Kellen Kiconco, the Presidential Advisor on Tax Matters, commended Kampala traders for choosing dialogue over confrontation, describing them as key partners in revenue mobilization and national stability.

“I appreciate these traders because they are our first tax collectors. When I first met them, they were planning to demonstrate across the country, but they chose dialogue instead of violence,” Ms. Kiconco said.

She thanked the traders for preserving the peace which the President worked hard to secure, noting that they had documented their challenges and formally submitted them to the State House for consideration.