Two traders’ associations have sued businessman Hamis Kiggundu for what they describe as illegal construction works along the Nakivubo Channel that has caused massive flooding , destroyed property and merchandise in billions of shillings .
The suit, filed on Monday before the Civil Division of the High Court, also cites the National Environment Management Authority (NEMA) and the Kampala Capital City Authority (KCCA) for allegedly failing to regulate and supervise the controversial project.
Kampala Arcaders Traders Association (KATA) and UNATA Traders Association Uganda Limited, are seeking court declarations that Kiggundu’s ongoing constructions are unlawful. They want a permanent injunction to halt further works along the drainage channel, compensation for damages, and orders for the removal of debris and obstructions from the waterway.
They claim the project has caused massive flooding, damaging merchandise and threatening livelihoods in business premises along Nabugabo Street, including French Plaza, Total Plaza, Jambole Plaza, Pentagon Arcade, Capital Arcade, 888 Plaza, BMK Plaza, PAPAZ Plaza, Shauriako, BBC Plaza, and Channel Street.
According to court filings, the controversy stems from a proposal submitted by Kiggundu to President Yoweri Kaguta Museveni on July 25, 2025, seeking permission to cover the Nakivubo Channel to address sanitation concerns and blockages. The President approved the plan in a letter to the Prime Minister the following month, directing that Kiggundu be allowed to execute the project.
But the traders argue that this presidential endorsement bypassed mandatory environmental impact assessments and urban planning approvals from NEMA and KCCA, rendering the construction illegal.
Through their lawyers, M/s Luzige, Lubega, Kavuma & Co. Advocates, the traders say they repeatedly tried to engage Kiggundu and his company, visiting the construction site and raising concerns about the floods and property damage. They also petitioned Parliament, prompting a meeting between the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) and KCCA officials on August 26, 2025, where oversight of the project was promised.
