Kampala Cabinet Bans Basement Trading and Allocates Shs18.9 Billion Following Severe Floods

In a decisive effort to tackle Kampala’s persistent flooding crisis, the Ugandan government has ordered all business operators in building basements to vacate immediately. The directive halts the widespread practice of converting designated parking areas into retail shops.

The resolution emerged from the 16th Cabinet Meeting, aiming to protect the capital from recurring disasters that have repeatedly destroyed property and cost lives during heavy downpours. Speaking to the press in Kampala, ICT and National Guidance Minister Justine Kasule Lumumba emphasized that illegal structural conversions severely exacerbate downtown flooding.

Minister Lumumba highlighted that poor construction management, narrow drainage weep holes, and improper solid waste disposal along the Nakivubo Channel continue to leave city dwellers vulnerable. She stressed that any space originally approved by the Kampala Capital City Authority (KCCA) for parking must remain clear, noting that authorities cannot wait for another El Niño disaster to strike.

To support those impacted, the Cabinet approved Shs18.99 billion in compassionate ex-gratia assistance for 1,841 verified traders who suffered losses during the October 2025 floods. Compensation targets merchants across 13 specific arcades and markets, including Nana Arcade, Totala Building, Qualicel Mall, and Owino Market. Traders omitted from the initial list are encouraged to register their grievances with KCCA or the Prime Minister’s office.

Additionally, the government allocated Shs1 billion to support trader organizations, directing funds toward the Federation of Uganda Traders Association (FUTA) operational expenses and a revolving fund. Authorities have also been instructed to clear drainage blockages and remove illegally constructed structures impeding water flow near the Nakivubo Channel.

Read the full report on the Daily Monitor.