The Ugandan government has ordered traders operating from basement parking areas in Kampala’s shopping arcades to vacate immediately following investigations that linked the illegal conversion of parking spaces into commercial shops to the city’s recurring flooding problems. The directive comes alongside Cabinet’s approval of more than Shs 20 billion in financial assistance and other support for traders who suffered heavy losses during the devastating floods of October 2025.
The resolutions were announced by the Minister for ICT and National Guidance, Justine Kasule Lumumba, during a press briefing at the Uganda Media Centre on Tuesday, November 10, 2026. She explained that Cabinet had approved Shs 18,999,500,000 in ex-gratia compensation for 1,841 verified traders whose businesses and merchandise were destroyed by floods that hit Kampala on October 30 and 31, 2025. The assistance is being provided as a goodwill gesture by the government without admitting legal responsibility for the losses.
The October floods caused extensive damage to businesses operating in 13 arcades around Owino Market in Kampala’s central business district. Among the affected buildings were Nana Arcade, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Nabukeera Arcade, Qualicel and Ssekaziga Arcade. Many traders lost merchandise, business equipment and other valuable property after heavy rainfall overwhelmed the city’s drainage systems, leaving several commercial premises submerged in water.
In addition to the compensation package, Cabinet approved another Shs 1.5 billion to support related interventions. The allocation includes Shs 682.5 million to facilitate the operations of the Federation of Uganda Traders Association (FUTA) and Shs 318 million as the government’s contribution towards the association’s revolving fund. The government says the support is intended to assist traders as they recover from the financial difficulties caused by the disaster.
According to Lumumba, investigations established that several human activities and structural problems contributed to the flooding. Property developments along Ssebaana Kizito Road and Allen Road, particularly around Nakivubo Channel, were found to have interfered with stormwater drainage systems. Some of the properties mentioned include Totala, Qualicel, French Plaza, Ssekaziga, City Plaza, Pentagon and Shree Indian Temple. Investigators also discovered that garbage, accumulated silt, construction debris and illegally established pavements had blocked drainage outlets, preventing rainwater from flowing freely into Nakivubo Channel and forcing it into nearby buildings and streets.
Cabinet further identified poorly designed underground culverts and drainage channels along Nabugabo Road, Allen Road, Ben Kiwanuka Road, Luwum Street and Ssebaana Kizito Road as part of the problem. The investigations revealed that some developers had turned basement spaces that were officially approved for vehicle parking into commercial premises, putting traders, customers and merchandise at risk whenever heavy rains caused water to enter the buildings. Lumumba observed that the spaces intended to accommodate vehicles had instead become workplaces occupied by people and filled with valuable business stock.
Following these findings, Cabinet directed all traders operating in basement areas originally designated for parking to leave immediately. The Office of the Prime Minister, Kampala Capital City Authority (KCCA) and the Ministry of Works and Transport have been tasked with preparing a joint plan to restore the affected basements to their legally approved purposes. The three institutions have been given one month to submit their proposals to Cabinet, while authorities are expected to strengthen enforcement of building regulations and address the identified drainage obstructions.
Meanwhile, the Office of the Prime Minister will coordinate the distribution of the approved financial assistance in collaboration with the Ministry of Finance, Ministry of Kampala, KCCA, Ministry of Water and Environment, National Environment Management Authority (NEMA), Internal Security Organisation (ISO), FUTA and representatives of the affected arcades. Lumumba said Cabinet had instructed the responsible institutions to speed up the payment process so that the verified beneficiaries can receive assistance. The government hopes that the compensation programme, restoration of drainage systems and immediate closure of illegally occupied basement shops will help protect businesses and prevent a repeat of the devastating flooding that affected Kampala traders last year.
