President Yoweri Kaguta Museveni has assured traders affected by the recent floods in Kampala that the government will compensate them for their losses, insisting that the matter is non-negotiable.
“We are going to go through that report. We have to compensate you because you made losses. There are no arguments about that,” President Museveni said during a meeting with traders at his Kisozi Farm. The delegation was led by Mr John Kabanda, president of the Federation of Uganda Traders Association (FUTA).
The President’s remarks follow severe flooding in Kampala over the past month, which worsened an already fragile situation along the Nakivubo Channel. A heavy downpour on October 31 was followed by another around November 19–20, causing flash floods in low-lying areas, including the Container Village and the Queensway interchange.
Traders reported losing property worth billions of shillings, attributing the floods to construction works along the Nakivubo Channel that narrowed key drainage pathways.
Addressing broader concerns, President Museveni also explained Uganda’s tax policy to young entrepreneurs, particularly members of Gen Z.
“Some of the Gen Z told me they want to join the business but complain about taxes. I explained to them that our taxes are intentional, not accidental,” he said.
The President clarified that taxation in Uganda largely targets imported and luxury goods, rather than local trade. “If you are selling bananas, there are no taxes—except occasional market dues. Taxes are mainly on imported products like perfumes and alcohol,” he explained.
He urged traders to embrace internal trade and local production, stressing that import substitution is a key pillar of Uganda’s economic strategy. “If you don’t want to pay taxes, don’t import. We need taxes to run the economy. Go into internal distribution,” he said, noting that increased local production would naturally reduce reliance on imports over time.
President Museveni also thanked traders for their continued support of the NRM and pledged to continue engaging their leaders to address outstanding issues.
