President Yoweri Kaguta Museveni has assured traders affected by the recent floods in Kampala that the government will compensate them for losses incurred during the disaster.
“We are going to go through that report. We have to compensate you because you made losses. There are no arguments about that,” President Museveni said.
The President made the remarks while meeting leaders of the trading community at his Kisozi Farm. The delegation was led by John Kabanda, president of the Federation of Uganda Traders Association (FUTA).
Floods Worsened by Nakivubo Works
Museveni’s assurance follows severe flooding that struck Kampala more than a month ago, compounding long-standing drainage challenges along the Nakivubo Channel. Barely three weeks after heavy downpours on October 31, another intense rainfall episode between November 19 and 20 triggered fresh flash floods in low-lying parts of the city, including the Container Village and the Queensway interchange.
Traders reported losses running into billions of shillings, with merchandise, shops, and storage facilities submerged. Together with city authorities, they attributed the flooding to ongoing construction works along the Nakivubo Channel, which narrowed critical drainage pathways and worsened water flow during heavy rains.
Clarifying Tax Policy Concerns
While addressing the traders’ concerns, President Museveni also took time to clarify government tax policies, particularly following recent engagements with young entrepreneurs he referred to as Gen Z.
“Some of the Gen Z told me they want to join business but complain about taxes. I explained to them that our taxes are intentional, not accidental,” Museveni said.
He stressed that taxation in Uganda primarily targets imported and luxury goods, rather than locally traded products.
“If you are selling bananas, there are no taxes—except occasional market dues. Taxes are mainly on imported products like perfumes and alcohol,” he explained.
The President urged traders to focus on internal trade and local production, emphasizing that import substitution remains a cornerstone of Uganda’s economic strategy.
“If you don’t want to pay taxes, don’t import. We need taxes to run the economy. Go into internal distribution,” he said, adding that increased local production would gradually reduce reliance on imports.
Traders Praise Dialogue and Stability
Presidential Advisor on Tax Matters, Kellen Kiconco, commended Kampala traders for choosing dialogue over confrontation, describing them as critical partners in revenue mobilisation and national stability.
“I appreciate these traders because they are our first tax collectors. When I first met them, they were planning to demonstrate across the country, but they chose dialogue instead of violence,” Kiconco said.
She noted that traders had documented their grievances and formally submitted them to State House, adding that they had pledged political support for President Museveni in the upcoming elections.
“They organised their issues, presented them formally, and told me that on January 15, 2025, they will vote for you,” she said.
Traders Reaffirm Support for Government
FUTA president John Kabanda underscored the importance of peace and freedom of expression as the foundation of business growth. He thanked the President for maintaining stability despite challenges facing the trading community.
“We are with you. Even those of us with small businesses are confident they will grow because of the peace and security you have provided,” Kabanda said.
He added that traders had already begun nationwide mobilisation efforts in Fort Portal, Mbarara, Masaka, Jinja and Mbale, with plans to intensify door-to-door engagement in Kampala.
Flood victims also expressed gratitude for the government’s swift response. Aman Kavuma, one of the affected traders, recalled the President’s directive that traders’ concerns be addressed without lengthy court processes.
“We were affected, many shops were destroyed, and names of flood victims were registered. We are waiting for your guidance because you brought peace,” Kavuma said.
Another victim, Allen Kisakye, said the floods destroyed all her property, highlighting the urgency of government compensation.
The meeting was attended by the Minister for Kampala and Metropolitan Affairs, Minsa Kabanda, and Uganda Revenue Authority Commissioner General John Musinguzi Rujoki.
