Compensation Standoff Deepens as Nakivubo Channel Traders Wait in Vain
**KAMPALA – A tense stalemate has developed over the compensation of traders affected by the ongoing redevelopment of the Nakivubo water channel, with landlords and the government each maintaining they are not responsible for the payout.
This follows a recent update from the Kampala City Traders Association (KACITA) chairman, Mr. Ssekito, who revealed that prominent landlords Drake Lubega and Ham Kiggundu have firmly stated they will not compensate the affected business owners.
The traders’ hopes were initially raised when State Minister for Kampala, Ms. Kabuye, reportedly advised the President to compel the landlords—including Lubega and a businessman identified as Younger—to pay the compensation. Minister Kabuye argued that these individuals were responsible for constructing buildings that encroached on and directed wastewater into the Nakivubo channel, necessitating the current government-led demolition and rehabilitation.
“Truth be told, government doesn’t have all that money, and Kiggundu has already spent a lot of money on that project. So those landlords should be the ones to compensate those rich traders,” Minister Kabuye was quoted as saying, in a tone that appeared to mock the affected business community.
She further dampened expectations of a government bailout, warning that if the state were to assume the cost, it could take over a decade for traders to receive their money. She pointed to the unresolved compensation for those affected by the Kitezi landfill as a sobering example.
However, this position is directly contradicted by the landlords. According to KACITA’s Ssekito, both tycoons Ham Kiggundu and Drake Lubega have given him personal assurances that they have no intention of compensating the traders, despite the minister’s advice.
Amid the blame game, a potential framework for compensation has emerged from another government quarter. The Brief Post has established that a team led by the Minister for the Presidency, Ms. Babirye Kabanda, recommended to the President that each verified trader be compensated with Shs 10 million.
Crucially, this recommendation specifies that only traders with formal shops should be considered for the payout, explicitly excluding those who operate from verandas.
With the landlords refusing to pay and the government expressing its own financial constraints, the hundreds of traders displaced by the critical infrastructure project are now caught in a growing political and financial crossfire, with no clear path to recovering their losses.
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