Uganda’s Cabinet, its council of ministers, has approved Shs18.9995 billion (Ugandan shillings, about US$4.79 million) for 1,841 traders in Kampala whose shops were flooded in October 2025. Justine Kasule Lumumba, the Minister for Information and Communications Technology (ICT) and National Guidance, announced the decision at the Uganda Media Centre, the government’s press office, on Tuesday, 10 November 2026.
What Cabinet Approved
Cabinet met on Monday, 9 November 2026, and Lumumba briefed reporters the next day. She said the Shs18.9995 billion is ex-gratia assistance, which she defined as a payment made out of goodwill without admitting a legal duty to pay.
Cabinet also approved extra money for the Federation of Uganda Traders Associations, known as FUTA, a traders’ body. Figures differ: the minister’s briefing gave about Shs1 billion (about US$0.25 million), split between Shs682.5 million (about US$172,000) for running costs and Shs318 million (about US$80,000) for its revolving fund (a pool of money lent to members), while the Uganda Media Centre’s written summary says Shs1.5 billion (about US$378,000).
The government had earlier earmarked Shs20 billion (about US$5.05 million) for flood-hit traders. Identifying and verifying eligible traders delayed the payout for months.
By our arithmetic, the Shs18.9995 billion works out at about Shs10.3 million (roughly US$2,600) per verified trader. That is an average, not the amount any single trader will receive.
Conversions in this article use US$1 = Shs3,964, the market close of 11 November 2026. Shs stands for Ugandan shillings.
Kampala city centre seen across open ground at dusk. Photo: Todd Huffman, CC BY 2.0, via Wikimedia Commons.Who Is Covered
Heavy rain on 30 and 31 October 2025 sent flash floods through downtown Kampala. The government says the money is for traders in these 13 arcades, which are multi-storey shopping buildings, and Owino Market, formally St Balikuddembe Market:
Why the Water Backed Up
Cabinet’s findings blame developers along Ssebana and Allen roads, next to the Nakivubo Channel, a drainage channel through central Kampala. Lumumba named Totala, Qualicel, French Plaza, Ssekaziga, City Baza, Pentagon and a temple, the Shree Indian Temple, as properties near the channel that interfered with stormwater drainage.
She also listed outlets into the channel blocked by silt, garbage, debris and illegally built pavements and plinth walls. Other causes were underground culverts that are too small or choked on several city roads, too few weep holes to let underground water drain into the channel, and poor disposal of waste and building rubble.
The Office of the Prime Minister, a government department, will coordinate the fixes with the finance, water and environment, and works ministries, the Kampala Capital City Authority (the city administration) and FUTA. The Uganda Media Centre adds that a task force including security organs and trader representatives has one month to present a work plan on the drainage crisis.
Basement Shops Must Close
Cabinet resolved that traders operating in basement space meant for parking must vacate immediately, Lumumba said. She said the practice leaves traders and their stock in the path of floodwater.
The order follows Cabinet’s finding that blocked drainage and building practices caused the floods. How and when it will be enforced has not been made public.
What It Means for You
Anyone who buys from, lends to or rents space to retailers in Kampala’s arcades should check whether the shop sits in a basement car park, because those traders must now leave. Shoppers and visitors may find basement stalls closed once the order is enforced.
The payout puts cash behind traders who have waited a year since the floods. With the Bank of Uganda, the central bank, holding its main interest rate at 12% on 9 November (our central bank report), borrowing stays costly for small firms.
For background, see who runs Uganda’s economy. Foreigners planning a stay can also read our guide to Uganda visa and residency rules.
What Is Not Known
The date when traders will be paid has not been made public. It is also not clear how individual amounts were set, how and when the basement order will be enforced, or whether traders left off the list will receive anything.
Frequently Asked Questions
How much did Uganda’s Cabinet approve for Kampala flood traders?
Cabinet approved Shs18.9995 billion (about US$4.79 million) for 1,841 verified traders. It added extra funding for the traders’ federation, FUTA.
Which Kampala traders are covered?
Traders in 13 arcades and Owino Market hit by the floods of 30 and 31 October 2025. Only traders verified by the government qualify.
Are basement shops banned in Kampala?
Cabinet resolved that traders must vacate basement space meant for parking. Minister Lumumba said the practice leaves traders and their stock in the path of floodwater.
Sources: Uganda Media Centre, Cabinet briefing by Minister Justine Kasule Lumumba on the Cabinet meeting of 9 November 2026, held 10 November 2026 (mediacentre.go.ug). Exchange rate: Uganda shilling market close, 11 November 2026.
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