The Ugandan government has ordered traders operating in basement parking areas of Kampala arcades to vacate immediately as part of measures to prevent a recurrence of flooding in the city centre.
The directive was announced by ICT and National Guidance Minister Justine Kasule Lumumba on Tuesday, November 10, 2026, following a Cabinet meeting held on Monday.
During a press briefing at the Uganda Media Centre, Lumumba also announced that Cabinet had approved Shs 18,999,500,000 in ex-gratia compensation for 1,841 verified traders who lost property during the devastating floods of October 30 and 31, 2025.
The floods, which followed heavy rains in Kampala, affected 13 arcades around Owino Market, leaving several traders with significant losses. Some of the affected buildings included Nana Arcade, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Nabukeera Arcade, Qualicel and Ssekaziga.
The minister explained that the compensation would be provided as ex-gratia assistance, meaning the government was extending financial support as a goodwill gesture without admitting legal liability for the losses.
Cabinet also approved an additional Shs 1.5 billion in support for the Federation of Uganda Traders Association (FUTA), including Shs 682.5 million to cater for its operational expenses and Shs 318 million as the government’s contribution to its revolving fund.
Lumumba said investigations had identified several factors that contributed to the flooding, including interference with stormwater drainage systems by property developers along Ssebaana Kizito Road and Allen Road, near Nakivubo Channel.
The properties mentioned included Totala, Qualicel, French Plaza, Ssekaziga, City Plaza, Pentagon and Shree Indian Temple.
US retains Uganda under highest Level 4 travel warning
Other contributing factors included undersized underground culverts and drainage channels along Nabugabo Road, Allen Road, Ben Kiwanuka Road, Luwum Street and Ssebaana Kizito Road.
She said some developers had also converted basement spaces originally approved for vehicle parking into commercial shops, putting traders and their merchandise at risk whenever water entered the buildings.
“This meant that when water entered buildings, instead of finding vehicles, it found human beings and their merchandise,” Lumumba said.
Following the findings, Cabinet directed the relevant authorities to enforce building regulations and ensure that basement parking spaces are restored to their approved use.
The Office of the Prime Minister, Kampala Capital City Authority (KCCA) and the Ministry of Works and Transport have been tasked with developing a coordinated plan to restore the affected basements. The institutions have been given one month to present the plan to Cabinet.
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 directed the responsible institutions to expedite the compensation process to ensure that the affected traders receive the assistance.
