The Ugandan Cabinet has directed the immediate vacation of basement shops in Kampala's arcades that were originally approved as parking spaces. This decision affects thousands of traders operating in the city's flood-prone areas. The directive was announced by Minister for the Presidency, Milly Babalanda Kasule Lumumba, following a Cabinet meeting chaired by President Yoweri Museveni.
The Cabinet also approved a Shs18.999 billion government compensation package for 1,841 traders whose businesses were affected by the devastating October 2025 floods in Kampala. The funds will be provided as compassionate ex-gratia assistance to traders who have been verified as victims of the floods. The affected buildings and trading centres include Nana Arcade, Total Building, and Owino Market, among others.
Investigations presented to Cabinet identified several factors contributing to the flooding, including interference with drainage systems by property developers, blocked drainage outlets, and undersized culverts. Some developers along Savannah and Allen roads were accused of interfering with stormwater drainage systems. The properties mentioned include Total, Qualicel, and French Plaza, among others.
The findings also pointed to poor solid waste disposal, environmental degradation, and the expansion of paved surfaces as contributing factors to the flooding. Cabinet was informed that some developers had obtained approval for basement floors to serve as parking facilities but later converted them into shops and commercial spaces. This change of use meant that when floodwater entered the buildings, it found traders and their merchandise occupying spaces that were supposed to accommodate vehicles.
The government has ordered a coordinated review of drainage systems and building developments to reverse the practices blamed for worsening flooding in the city. The Office of the Prime Minister will lead the implementation process, working with various government agencies, including KCCA, the Ministry of Works, and the Ministry of Water and Environment.
The government intervention goes beyond paying traders for their losses; it also puts property developers, building managers, and traders under renewed scrutiny over how commercial buildings are constructed, approved, and used. For the affected traders, the Shs19 billion package offers financial relief after more than a year of waiting. However, those operating in basement shops face the immediate concern of finding alternative trading space.
The bigger question is whether the proposed interventions will finally address Kampala's drainage problems before another heavy downpour turns the city's commercial centre into a flood zone. The Office of the Prime Minister and relevant technical agencies have been tasked with preparing a coordinated work plan to address the drainage and construction problems and presenting it to Cabinet within one month.
Key points
- The Ugandan Cabinet has approved a Shs18.999 billion compensation package for traders affected by the October 2025 floods in Kampala.
- The government has ordered the immediate eviction of traders from basement shops in Kampala's arcades, citing original approvals for parking spaces.
- The proposed interventions aim to address Kampala's drainage problems and prevent future flooding in the city's commercial centre.
