Kampala Releases $5M to Compensate Flood-Hit Traders

Hundreds of flood-affected traders in Kampala are lining up at FUTA offices with hope in their hearts as Uganda prepares to distribute approximately 20 billion shillings (about $5 million) in compensation funds. The money, now secured at the Bank of Uganda, represents a concrete commitment to rebuild livelihoods destroyed when floods devastated the capital at the end of 2025.

The scene outside FUTA headquarters tells a story of cautious optimism. Traders from different market buildings are checking lists to verify their names, while others rush to complete their registration before the three-week deadline arrives.

John Kabanda, a traders' leader, is helping guide victims through the verification process. He's making sure everyone understands the requirements: only those without ongoing flood-related court cases will qualify for payments, which will be deposited directly into their bank accounts.

The meeting grew tense when some traders demanded to see the physical cash, convinced it had already arrived at FUTA offices. Kabanda reassured the worried business owners that their funds are safe at the central bank, waiting for proper verification to prevent fraud and ensure every legitimate victim gets their fair share.

The Ripple Effect

This compensation effort goes beyond simply handing out money. By requiring bank account deposits, the government is protecting vulnerable traders from potential exploitation while creating a transparent paper trail. The verification process, though frustrating for some, ensures funds reach actual victims rather than opportunists.

The careful approach is already fostering unity among the traders. Leaders are encouraging cooperation and patience, knowing that following guidelines properly means more people will ultimately benefit. One trader captured the mixed emotions perfectly: while grateful for the compensation, the community hopes the government will also address ongoing challenges like high taxes that continue squeezing small businesses.

The Ministry of Finance's confirmation that vetting is complete marks a turning point for traders who've been struggling since the floods. Within three weeks, bank accounts will start receiving deposits, giving business owners the capital they need to restock inventory, repair damage, and restart operations that support their families.