news 11 August 2026 Daily Monitor (Uganda)
Compensation Delays Slow Down Key Iganga-Luuka-Kamuli Road Project
Construction of the vital 54-kilometer Iganga-Luuka-Kamuli road is facing significant delays due to slow compensation of project-affected individuals, hindering the contractor's access to crucial sections. Source: https://www.monitor.co.ug/uganda/news/national/compensation-delays-blamed-for-slow-progress-on-iganga-luuka-kamuli-road-5553950
The ambitious Shs300 billion Iganga-Luuka-Kamuli road project, aimed at enhancing connectivity and trade in the Busoga sub-region, is experiencing a frustrating slowdown. Arab Contractors, the firm undertaking the upgrade, has identified delayed compensation for landowners as the primary impediment to progress.
Grace Mutale, the community liaison officer for Arab Contractors, explained during a site inspection that the inability to access all areas is directly linked to outstanding payments. “Some affected people have been compensated, while others are still waiting. We urge leaders to engage the Ministry of Works and Transport to expedite compensation so that the project can proceed,” she stated.
The lack of full compensation restricts the contractor’s ability to mobilize and maintain continuity in their construction efforts. Compounding these issues are incidents of vandalism, with road signs being stolen for firewood, posing a safety risk and disrupting work. Local officials are urging the government to prioritize compensation payments to allow the project to move forward as planned.
Luuka District LCV chairman Peter Kafuko Mulyandawo commended the contractor’s efforts thus far but emphasized the urgency of the compensation process. “As a district, we appreciate the progress made, but we urge the government to expedite compensation because delays are hindering the project,” he said. Residents have also voiced concerns about dust pollution and the condition of alternative routes during construction.
The 54-kilometer road, stretching from Walugogo in Iganga to Budhumbula in Kamuli, began in October 2025 and is slated for completion within 36 months. Officials from the Ministry of Works and Transport have indicated that compensation is being disbursed in phases, with funds becoming available. Efforts are underway by local leaders to lialise with the Ministry and Parliament to ensure all affected parties are compensated, thereby enabling the contractor to meet the project deadline.