Nakivubo floods: Tough conditions lock out traders from compensation

Government has set strict eligibility requirements for traders seeking financial support after last month’s floods devastated several buildings in downtown Kampala, leaving property worth billions of shillings destroyed.

The flooding, triggered by heavy October rains and worsened by ongoing construction along the Nakivubo Channel, affected an estimated 1,621 traders, according to preliminary data compiled by the Kampala Arcades Traders Association (UNATA) and submitted to the Office of the Prime Minister (OPM).

However, traders’ leaders now fear that only a small fraction will qualify for relief.

UNATA chairperson Godfrey Kabanda said that the government’s conditions—including possession of a Tax Identification Number (TIN), a trading licence, proof of income tax payment, and a tenancy agreement—are likely to disqualify the majority of victims.

“We have registered a total of 1,621 traders who lost property in the floods,” Mr Kabanda said. “But KCCA has fronted harsh conditions that might leave very few traders to benefit. A single shop downtown often houses between five and ten sub-tenants, yet they all operate under one licence. How will the government decide who qualifies?”

Kampala Capital City Authority spokesperson Daniel Muhumuza Nuweabine defended the criteria, saying they are not new demands but existing statutory requirements for anyone running a business in Uganda.

“The Business Names Registration Act requires that every business must be registered. The Trade Licensing Act requires that businesses hold valid licences. Under the Income Tax Act, every business owner must have a Tax Identification Number,” he said.

On concerns that sub-tenants could be excluded, Mr Nuweabine said eligibility must be clarified before any financial support is issued.
“Let’s first establish who is eligible to get taxpayer money. Once that is clear, we can determine how support will be extended,” he said.

Kampala City Traders Association (KACITA) Chief Executive Officer Abel Mwesigye said the traders have not yet agreed on what level of financial support they expect, arguing that compensation depends on the value of individual losses.

“With relief, someone can offer what they can afford. But compensation must reflect original indemnity. We haven’t harmonised anything yet, and we don’t know the government’s plans,” he said.

KCCA Executive Director Sharifah Buzeki said the authority has completed enumerating affected traders in the nine damaged buildings and is now finalising verification before submitting data to the Ministry for Disaster Preparedness.

“We have the names, numbers, type of businesses, and we compared this with colleagues working in the same buildings to confirm bona fide traders. We’re now cross-checking the data. Next week we submit the final list,” she said.

Mr Mwesigye urged KCCA to harmonise the lists quickly to establish the actual number of traders who will qualify for assistance.

Earlier this month, Prime Minister Robinah Nabbanja visited Nakivubo Channel and the surrounding arcades to assess the destruction. She later directed investor Hamis Kiggundu, who is redeveloping the area, to create more culvert openings to ease water flow.