Two traders’ associations, Kampala Arcaders Traders Association (KATA) and UNATA Traders Association Uganda Limited, have dragged city businessman Hamis Kiggundu to court over what they describe as illegal construction works along the Nakivubo Channel.
The suit, filed on Monday before the Civil Division of the High court, also lists the National Environment Management Authority (NEMA) and the Kampala Capital City Authority (KCCA) as respondents, accusing them of failing to regulate and supervise the controversial project.
KATA and UNATA are seeking court declarations that Kiggundu and his company, Kiham Enterprises Ltd’s ongoing works along the drainage channel are unlawful. They want a permanent injunction stopping further construction, compensation for damages, and an order compelling the removal of debris and obstructions from the waterway.
According to court documents, the traders claim that Kiggundu’s project has worsened flooding in downtown Kampala, destroying merchandise and threatening livelihoods in arcades and plazas 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.
The controversy stems from a proposal Kiggundu reportedly submitted to President Yoweri Museveni on July 25, 2025, seeking permission to cover the Nakivubo Channel to address sanitation and drainage challenges.
Museveni subsequently approved the plan in a letter to the Prime Minister the following month, directing that Kiggundu be allowed to implement the project. However, the traders argue that this presidential endorsement bypassed mandatory environmental impact assessments and urban planning approvals from NEMA and KCCA, rendering the works illegal.
Through their lawyers, Luzige, Lubega, Kavuma & Co. Advocates, the traders say they made several attempts to engage Kiggundu and his company, including visits to the construction site and written complaints about persistent flooding and property damage.
They also petitioned parliament, prompting the committee on Commissions, Statutory Authorities and State Enterprises (COSASE) to meet with KCCA officials on August 26, 2025, where oversight of the project was pledged.
“Despite numerous appeals and engagements, construction has continued without addressing our concerns,” reads part of the petition.
The traders maintain that their legal action is not simply against a developer but “for the soul of Kampala’s future”, a city, they say, that must balance urban development with environmental preservation and citizens’ safety.
The petition further accuses NEMA and KCCA of gross negligence and dereliction of duty, arguing that their inaction has allowed private developers to tamper with critical public drainage systems.
In a separate statement issued Sunday, KCCA attributed the recent flash floods in the city to unusually heavy rainfall, not construction activity. The authority said that while drainage improvements in areas such as Soya-Bunga, Lubigi, Nakamiro, and Kibuli have reduced flooding, blockages were still reported along Nakivubo Channel and around the Old Taxi Park, where basement premises were submerged.
KCCA added that its teams, in collaboration with the Uganda Police Force and National Water and Sewerage Corporation (NWSC), are working to drain water, clear debris, and monitor flood-prone areas.
KCCA executive director, Hajjati Sharifah Buzeki, urged residents to remain vigilant during the rainy season, avoid flood-prone routes, and report blocked drains for quick intervention.
Meanwhile, Kampala Lord Mayor Erias Lukwago called for Kiggundu’s prosecution, accusing him of “blatant impunity” and a “reckless disregard for environmental and urban planning laws.”
“This is not just about money or property — it’s about human safety and respect for public infrastructure,” Lukwago said, vowing to rally legal and political support for affected traders. Kiggundu has not yet been summoned to respond to the allegations. The case will be assigned to a judge once preliminary filings are reviewed by the court.
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