The government has directed traders operating in basement shops in Kampala to vacate immediately, following a Cabinet decision to stop the conversion of designated parking spaces into commercial premises.
The directive was announced by Minister for the Presidency Justine Kasule Lumumba while briefing journalists on resolutions of the 16th Cabinet meeting held on November 9, 2026.
Cabinet also approved Shs18.99 billion in compassionate ex-gratia assistance for 1,841 verified traders whose businesses were affected by the October 2025 floods in Kampala.
According to Lumumba, the money will be distributed to traders operating in 13 buildings who suffered losses during the floods.
The government also approved Shs1 billion to support the operations of the Federation of Uganda Traders Associations (FUTA) and its revolving fund.
The decision to close basement shops follows concerns that some building owners converted spaces originally approved for parking into commercial premises, affecting drainage and contributing to flooding during heavy rains.
The government has called for enforcement of building regulations and improvements in drainage systems to reduce the risk of similar incidents, particularly ahead of the anticipated El Niño rains.
The ex-gratia payments are described as compassionate assistance rather than compensation arising from an admission of legal liability by the government.
In other decisions, Cabinet approved the Board of Directors for the National Drug and Health Products Authority, which will be responsible for regulating pharmaceuticals, medical equipment, diagnostic products, public health chemicals and cosmetics.
The authority is expected to strengthen oversight of health products and related supplies in the country.
Cabinet also authorised funding for the demarcation and reaffirmation of Uganda’s international boundaries and local government boundaries.
The exercise is intended to clarify and reinforce the country’s territorial boundaries as well as administrative boundaries between local government units.
