The Ugandan government has committed to pay UGX 38.5 billion to the Buganda Kingdom as part of a long-standing UGX 154 billion debt. The compensation will be disbursed over four financial years, according to Henry Musasizi, Minister of State for Finance.
The announcement was made during a session with Parliament’s Budget Committee on Tuesday, where Minister Musasizi and Secretary to the Treasury Ramathan Ggoobi presented the draft budget estimates for the 2025/26 financial year. The revelation came in response to queries from MPs about a UGX 120 billion budget allocation earmarked for compensation to various entities, including the Buganda Kingdom.
The planned compensation follows a 2013 agreement between the government and the Buganda Kingdom regarding the return of properties previously seized by the state. These included:
- 18 county headquarters
- Jeza Farm in Mityana
- Plot 52 on Kampala Road
- Mutesa House in London
However, the kingdom has demanded payment for Mutesa House and Plot 52, as the government sold them before they could be returned.
The original seizure of these properties traces back to 1966, during the regime of former President Milton Obote, who abolished cultural institutions across Uganda.
In addition to the Buganda Kingdom compensation, Musasizi outlined other notable allocations in the 2025/26 budget:
- UGX 3.95 billion for completion of works at the Uganda Martyrs Catholic Shrine in Namugongo
- UGX 60 billion to support coffee farming in Northern Uganda, including funding for seedlings, hoes, and fertilizers
- UGX 10 billion under the recurrent budget for coffee and oilseed seedlings
- UGX 20 billion allocated for additional coffee inputs in the next financial year
The budget presentation comes amid encouraging performance in Uganda’s coffee exports. According to the March 2025 Monthly Coffee Report, Uganda exported 642,981 bags of coffee, earning $198.62 million (UGX 727.08 billion). Italy remained the leading importer, accounting for 38.43% of exports, followed by India, Germany, Spain, and Sudan.
However, not all discussions in Parliament were celebratory. Tororo North MP Geoffrey Ekanya voiced concerns over 100 parishes that were allegedly excluded from the Parish Development Model, Uganda’s flagship poverty-alleviation initiative.
“These parishes were gazetted but left out due to an error by the Ministry of Finance,” Ekanya stated. “Despite repeated appeals, no corrective action has been taken.”
In response, Musasizi noted that 2.5 million beneficiaries have already received PDM support, and an additional UGX 1.5 trillion has been allocated to expand coverage in the upcoming fiscal year.
The government’s decision to begin compensating the Buganda Kingdom represents a significant step toward addressing historical injustices. While the move has been welcomed by some, broader debates over equitable budget distribution and program implementation continue to dominate parliamentary discourse.
