The Ugandan government has ordered traders operating in basement parking areas of Kampala arcades to vacate immediately as authorities move to prevent a repeat of the devastating flooding that affected parts of the city centre in October 2025.
ICT and National Guidance Minister Justine Kasule Lumumba announced the directive on Tuesday, November 10, 2026, following a Cabinet meeting held on Monday.
Speaking at a press briefing at the Uganda Media Centre, Lumumba also revealed that Cabinet had approved Shs18,999,500,000 in ex-gratia compensation for 1,841 verified traders who lost property during the floods of October 30 and 31, 2025.
The flooding followed heavy rains in Kampala and affected 13 arcades around Owino Market, leaving traders with significant losses. Among the affected buildings were Nana Arcade, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Nabukeera Arcade, Qualicel and Ssekaziga.
Lumumba clarified that the payments would be made as ex-gratia assistance, meaning the government was offering financial support as a goodwill gesture without admitting legal liability for the losses.
Beyond the compensation package, Cabinet approved an additional Shs1.5 billion for the Federation of Uganda Traders Association (FUTA). The allocation includes Shs682.5 million for operational expenses and Shs318 million as the government’s contribution to the association’s revolving fund.
The minister said investigations into the flooding had identified several factors that contributed to the disaster, including interference with stormwater drainage systems by property developers along Ssebaana Kizito Road and Allen Road, near Nakivubo Channel.
The properties mentioned in the findings included Totala, Qualicel, French Plaza, Ssekaziga, City Plaza, Pentagon and Shree Indian Temple.
Investigators also identified undersized underground culverts and drainage channels along Nabugabo Road, Allen Road, Ben Kiwanuka Road, Luwum Street and Ssebaana Kizito Road.
Another concern was the conversion of basement spaces originally approved for vehicle parking into commercial shops, exposing traders and their merchandise to flooding.
“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 authorities to enforce building regulations and ensure that basement parking areas 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 preparing a coordinated plan to restore the affected basements. They have one month to submit the plan to Cabinet.
Meanwhile, the Office of the Prime Minister will coordinate the distribution of the approved compensation in collaboration with the relevant government ministries, KCCA, NEMA, the Internal Security Organisation, FUTA and representatives of the affected arcades.
Lumumba said Cabinet had directed the responsible institutions to expedite the process so that verified traders can receive the financial assistance.
The latest measures combine immediate restrictions on basement trading with compensation for affected businesses, as the government seeks to address the drainage and building-related issues identified after the 2025 floods.