Government releases sh47.5b for land compensation in Karamoja

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The government has begun compensating the Naita-Atepeth community in Moroto District for 10,000 acres of land acquired for the establishment of a clinker and cement production plant. Of the total allocation of sh47.5 billion for this compensation, only sh2 billion has been released so far.

Speaking at the Office of the Prime Minister in Kampala on Friday, Lands Minister Judith Nabakooba confirmed the funds are available, and the remaining balance has been planned for in the next financial year.

“The money is ready and payment is awaiting this agreement. The balance will be catered for in the next financial year's budget,” she said.

The event marked the signing of a lease agreement between the government and the community, giving the state legal access to the land earmarked for the project. The land will support the construction of Uganda’s first large-scale clinker factory.

The plant, currently under construction in Moroto by West International Holding Limited, a subsidiary of China West Cement Limited, is expected to produce up to 6,000 tonnes of clinker per day. The facility will help reduce Uganda’s reliance on imported clinker, mainly from Kenya.

Self-Reliance

According to Nabakooba, Uganda spends around $380 million annually on clinker imports. This project aims to slash that cost significantly while creating jobs and contributing to local development.

She attributed the project’s beginnings to President Yoweri Museveni, who in 2023 encouraged the late Hasmukhbhai Patel, then chairman of Tororo Cement Limited, to consider establishing the factory in Karamoja.

In February 2024, the prime minister directed the Lands Ministry to fast-track and coordinate the land acquisition process between the local community and the investor.

“My ministry immediately convened a meeting with all key stakeholders. Several meetings were held in Kampala, State House, and Tororo,” Nabakooba said.

She added that her team later visited Katikekile in Moroto to meet with the community, inspect the land, and listen to their concerns.

“The community was receptive. They understood the significance of the project and were ready to support it,” she said.

Legal structures and land rights

The 10,000 acres of land are communally owned under land associations, which are legal entities formed and registered by the Ministry of Lands. These associations have helped organise and empower the community to secure legal rights to their land.

“It is through this empowerment that we are gathered here today to sign,” Nabakooba said.

The government committed to covering all costs related to surveying, demarcation, titling, and conversion of land from customary tenure to freehold.

Out of the total land, 500 acres were sold to the investor in freehold for the factory’s construction. The community was compensated, and the land title was officially transferred to the investor.

The other remaining 9,450 acres were leased to the government for 49 years. This land will serve as a source of raw materials for the clinker plant. The proposal was reviewed and approved by the Cabinet, the Finance Ministry, and the Attorney General.

“The lease titles will now be created in the name of the Uganda Investment Authority. The freehold titles will return to the communal land associations,” Nabakooba explained.

Community demands inclusion

Local leaders expressed optimism that the project would transform the region, but emphasised the need for inclusive development.

“I urge the investor to treat the community well, offer jobs, business opportunities and protect the environment. Likewise, the community should support the investor,” Nabakooba said.

Karamoja Affairs Minister Dr Peter Lokeris added that jobs from the factory should be reserved for locals and that the community’s livestock should continue grazing on undeveloped parts of the land.

George Kalemera, a commissioner at the Ministry of Justice and Constitutional Affairs, called for the preservation of cultural sites even as development progresses.

Robert Mukiiza, director general of the Uganda Investment Authority, said 5,000 jobs have already been created by the project, and more are expected. He praised the Atepeth community for being open and welcoming.

Stephanie Adupa, a local leader from Tapac Sub-County, said over 25,471 people have been compensated, and the community is now hopeful.

“We are optimistic that the community will rally around this project to ensure its success,” she said.

Meanwhile, the lands minister said the clinker factory is a major step in Uganda’s industrial journey, and for Karamoja, it is a rare opportunity for transformation. With legal processes completed and compensation underway, the region now stands on the brink of significant change.