Business 13 August 2026 Daily Monitor (Uganda)
Maize Suppliers Block Factory Over Shs2.6 Billion Debt in Luweero
Dozens of maize suppliers halted operations at PRO Industries Limited in Luweero, demanding over Shs2.6 billion for produce delivered since March. The suppliers cite severe financial strain due to the prolonged delay in payments. Source: https://www.monitor.co.ug/uganda/news/national/angry-maize-suppliers-block-factory-entrance-over-shs2-6b-debt-5557312
Operations at PRO Industries Limited in Luweero District were brought to a standstill on Thursday when a large group of maize suppliers blockaded the factory entrance. The angry traders, who claim to have supplied approximately 3,000 tonnes of maize, are demanding payment exceeding Shs2.6 billion for deliveries made since March.
Trucks belonging to the suppliers were used to obstruct vehicles from entering or leaving the premises for several hours, disrupting normal business activities. The traders accuse the company of breaching an agreement that stipulates prompt payment upon issuance of a Local Purchase Order (LPO).
According to Ismah Mubiru, director of Limewell General Stores, the company has delayed payments for months, offering only unfulfilled promises. Mubiru also alleged that PRO Industries attempted to underpay suppliers by claiming a significantly lower outstanding debt based on their LPOs, an offer the suppliers rejected.
Individual traders detailed significant financial hardship. Jamadah Lubega stated he is owed around Shs160 million, while Ismael Sengooba is seeking Shs96 million. Steven Mugumya, who supplied grain through Limewell General Stores, is facing potential loss of collateral for a Shs50 million bank loan taken to finance his maize purchases.
PRO Industries Human Resource Manager, Raj Gautam, denied any malicious intent, citing accounting discrepancies and a need for invoice reconciliation. He stated that suppliers had not cooperated during previous attempts to resolve these issues. Gautam also clarified that the company’s official records only recognize Limewell Suppliers Limited as their contractual partner, not individual traders.
The standoff led to the intervention of local police and deputy RDC, who facilitated a mediation meeting. The suppliers agreed to clear the entrance after assurances that a formal reconciliation meeting, where all parties will present documentation, is scheduled for Monday, August 17.