Cabinet Approves Shs19bn for 1,841 Kampala Flood Victims

Government has approved Shs18.9995 billion in compassionate financial assistance for 1,841 verified traders whose businesses were affected by the October 2025 floods in Kampala. Cabinet also approved an additional Shs1.0005 billion to support the operations and revolving fund of the Federation of Uganda Traders Associations (FUTA), bringing the total financial package to Shs20 billion.

The resolutions were announced on Tuesday by the Minister for ICT and National Guidance, Justine Kasule Lumumba, while briefing journalists at the Uganda Media Centre on decisions of the 16th Cabinet meeting held on November 9, 2026. Lumumba said the Shs18.9995 billion would be provided as compassionate ex-gratia assistance to the verified traders affected by the heavy rains of October 30 and 31, 2025.

“Ex-gratia means this is a payment made out of goodwill to help those affected without admitting a legal duty to pay,” Lumumba explained. The floods triggered flash flooding in downtown Kampala, principally affecting 13 arcades and St Balikuddembe Market, commonly known as Owino Market.

The affected premises include Nana Arcade, Totala Building, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Qualicel Mall, Freedom Centre, Nabukera Plaza, Ssekaziga Arcade, Jessa Centre, Jambore Arcade, Tuba Plaza and Owino Market. Of the additional Shs1.0005 billion approved for FUTA, Shs682.5 million will cater for the association’s operational expenses, while Shs318 million will constitute the government’s contribution to its revolving fund.

The approval follows months of uncertainty over compensation for traders who lost merchandise and property during the floods. The government had previously earmarked Shs20 billion for the affected traders, but the identification and verification of eligible beneficiaries delayed the process. 

In another decision, Cabinet approved the Board of Directors for the National Drug and Health Products Authority (NDHPA), a new regulatory institution established under the National Drug and Health Products Authority Act, 2026.  The new authority will have an expanded mandate covering the regulation of pharmaceuticals, medical equipment, diagnostic products, public health chemicals and cosmetics, among other health products.

Cabinet also authorised funding for the demarcation and reaffirmation of Uganda’s international boundaries and local government boundaries. The boundary exercise is expected to support the clarification and documentation of territorial limits for administrative and governance purposes.