Government bans basement shops in Kampala arcades, approves Shs 20 billion for flood relief

The government has ordered traders operating shops in basement parking areas of Kampala arcades to vacate immediately as it moves to prevent flooding in the city centre.

The directive came from a Cabinet meeting held Monday, November 9, 2026, which also approved more than Shs 20 billion in financial assistance and related support for traders affected by the October 2025 floods.

ICT and National Guidance Minister Justine Kasule Lumumba announced the resolutions this Tuesday, while addressing the press at the Uganda Media Center.

She said the Cabinet approved Shs 18,999,500,000 in compensation for 1,841 verified traders who lost property during the floods of October 30 and 31, 2025.

The government classified the payments as ex-gratia assistance, meaning it will provide the money as a goodwill gesture without accepting legal responsibility for the losses.

The floods followed heavy rains that swept through Kampala's central business district, affecting 13 arcades around Owino Market.

The affected buildings included Nana Arcade, Capital Centre, Pentagon Plaza, French Plaza, Premier Arcade, Nabukeera Arcade, Qualicel and Ssekaziga.

Lumumba said Cabinet also approved an additional Shs 1.5 billion, including Shs 682.5 million for the operating expenses of the Federation of Uganda Traders Association (FUTA) and Shs 318 million as the government's contribution to the association's revolving fund.

The minister said the government had also identified several factors responsible for the flooding.

These include interference with stormwater drainage systems by property developers along Ssebaana Kizito Road and Allen Road, near Nakivubo Channel.

The properties cited include Totala, Qualicel, French Plaza, Ssekaziga, City Plaza, Pentagon and Shree Indian Temple.

Investigations also found that silt, garbage, debris and illegally constructed pavements had blocked drainage outlets into Nakivubo Channel.

These obstructions prevented stormwater from flowing into the channel, forcing it back into surrounding buildings and streets.

Other problems included undersized underground culverts and drainage channels along Nabugabo Road, Allen Road, Ben Kiwanuka Road, Luwum Street and Ssebaana Kizito Road.

Lumumba said Cabinet had directed authorities to address these problems and enforce building regulations, particularly those governing the use of basement parking spaces.

She explained that developers had converted basements 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,” she said.

Cabinet has now ordered all traders occupying basement areas designated for parking to leave immediately.

The Office of the Prime Minister, Kampala Capital City Authority (KCCA) and the Ministry of Works and Transport were directed by the cabinet to develop a coordinated plan to restore the affected basements to their approved use.

The institutions have one month to present the plan to the Cabinet.

Meanwhile, the Office of the Prime Minister will coordinate the distribution of financial assistance to the affected traders.

It will work with the Ministry of Finance, Ministry of Kampala, KCCA, Ministry of Water and Environment, National Environment Management Authority (NEMA), Internal Security Organisation (ISO), FUTA and representatives of the affected arcades.

Lumumba said the Cabinet had directed the responsible institutions to expedite the payments.

The government hopes the measures will reduce flooding in Kampala's commercial centre and prevent a repeat of the losses suffered by traders last year.