Uganda Cabinet Approves Shs19bn for 1,841 Kampala Flood Victims

The Ugandan government has approved a financial package of Shs19 billion for 1,841 verified traders affected by the October 2025 floods in Kampala. This decision was announced by Minister for ICT and National Guidance, Justine Kasule Lumumba, after the 16th Cabinet meeting held on November 9, 2026. The funds will be provided as compassionate ex-gratia assistance to those whose businesses were impacted by the heavy rains on October 30 and 31, 2025.

The floods caused significant damage in downtown Kampala, particularly affecting 13 arcades and St Balikuddembe Market, also known as Owino Market. Some of the affected premises include Nana Arcade, Totala Building, and Capital Centre. The Shs19 billion package aims to provide relief to those who lost merchandise and property during the floods. The government had initially earmarked Shs20 billion for the affected traders, but the identification and verification process delayed the compensation.

In addition to the Shs19 billion package, the cabinet also approved an extra Shs1.0005 billion to support the operations and revolving fund of the Federation of Uganda Traders Associations (FUTA). Of this amount, Shs682.5 million will cover FUTA's operational expenses, while Shs318 million will contribute to the government's revolving fund. This move is expected to help traders recover from the devastating effects of the floods.

Minister Lumumba explained that the ex-gratia payment is a goodwill gesture to help those affected, without admitting a legal duty to pay. The cabinet's decision brings relief to traders who have been waiting for compensation for months. The verification process was crucial in ensuring that only eligible beneficiaries receive the financial assistance.

The cabinet also made other important decisions, including the approval of the Board of Directors for the National Drug and Health Products Authority (NDHPA). This new regulatory institution will oversee the regulation of pharmaceuticals, medical equipment, and other health products. The NDHPA's expanded mandate aims to improve the country's healthcare sector.

Furthermore, the cabinet authorised funding for the demarcation and reaffirmation of Uganda's international boundaries and local government boundaries. This exercise is expected to clarify and document territorial limits for administrative and governance purposes. The boundary demarcation will help prevent disputes and promote peaceful coexistence between communities.

The government's efforts to support flood victims and improve the business environment are ongoing. The approval of the financial package and the establishment of the NDHPA demonstrate the government's commitment to addressing the needs of its citizens. As the country continues to recover from the floods, the cabinet's decisions are expected to have a positive impact on the affected communities.

Key points

• The Ugandan cabinet approves Shs19 billion for 1,841 verified traders affected by the October 2025 floods in Kampala.
• An additional Shs1.0005 billion is approved to support the operations and revolving fund of the Federation of Uganda Traders Associations (FUTA).
• The cabinet also approves the Board of Directors for the National Drug and Health Products Authority (NDHPA) and authorises funding for boundary demarcation.