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Govt Releases Shs24b to Compensate Oil Palm Project-Affected Families

Leonard Kamugisha Akida by Leonard Kamugisha Akida
December 5, 2025
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Govt Releases Shs24b to Compensate Oil Palm Project-Affected Families

Palm growing in Buvuma District and Sango Bay in Kyotere District.

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By Leonard Kamugisha Akida,
KAMPALA

The government of Uganda has finally released a sum of UGX24 billion money to compensate families affected by the National Oil Palm Project in Buvuma and Sango bay.

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This was revealed by the State Minister for Agriculture, Animal Industry and Fisheries, Fred Bwino Kyakulaga, during a media briefing at Uganda Media Centre Kampala on Friday morning. According to the minister, the Ministry of Finance, Planning and Economic Development has released Shs24 billion part of the Shs52 billion required to fully compensate residents whose land was acquired for the oil palm expansion in Buvuma District and Sango Bay in Kyotera District.

The verification and valuation exercise, carried out jointly by the Ministry of Agriculture and the Ministry of Lands, identified hundreds of project-affected persons whose land was taken over by the government project. The land was valued by the government valuer “with full knowledge and cooperation of the affected families,” the minister said.

He noted that Shs14 billion of the newly released funds has been allocated to compensate project-affected persons in Buvuma, while Shs10 billion will go to residents of Sango Bay.

“The money raised so far is partial payment,” Kyakulaga clarified. “After paying the beneficiaries, we shall remain with an outstanding balance that government will release in the near future.”

So far, the ministry has made full payments to 301 project-affected persons in five villages of Buvuma namely Bubembe, Bwaka, Buwanga and Mbekete villages. A total of 1,405 people in 11 villages are expected to benefit from this compensation in Buvuma alone, with payment scheduled in phases as directed by President Yoweri Museveni.

The ministry says it’s has completed the disclosure of verified beneficiaries in Buvuma, paving the way for phased compensations, while disclosure in Sango Bay is still ongoing.

State minister for Agriculture Fred Bwino Kyakulaga together with some of the ministry officials during a press briefing at UMC Kampala on Friday. Photo Credit: UMC

“Once the report is submitted to the ministry, payment will be effected immediately. The government is committed to ensuring that all the funds required to complete the compensation exercise are released. We have got that assurance from the Ministry of Finance,” Kyakulaga emphasized.

He urged residents to remain calm as government completes the exercise.

“My ministry appreciates the cooperation of stakeholders, local leaders and the community members,” he said. “I call upon project-affected persons in Buvuma and Sango Bay to exercise patience, assured that all of them will be compensated by the government of Uganda.”

The minister emphasised that the compensation process will continue “efficiently and responsibly” until every verified person has been paid.

The National Oil Palm Project is one of the country’s flagship agricultural ventures intended to boost local production of vegetable oils, but has in recent years faced tension from communities displaced or affected by land acquisition.

Tags: Buvuma islandFred Bwino KyakulagaFred KyakulagaNational Oil Palm ProjectOil Palm ProjectSango Bay

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