A valuation report by the Government Valuer estimated that a total of sh52bn is required to fully compensate all Project Affected Persons (PAPs).
The Government of Uganda has released more than sh24bn to compensate residents affected by the National Oil Palm Project (NOPP), marking the first major payout in a long-awaited compensation process in Buvuma and Sango Bay.
According to the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), the funds are part of a directive from President Yoweri Kaguta Museveni instructing the ministry to fast-track compensation for individuals whose land was acquired for the project.
The Ministry of Lands, Housing and Urban Development (MoLHUD) has been working alongside MAAIF to verify affected households and determine valuation.
A valuation report by the Government Valuer estimated that a total of sh52bn is required to fully compensate all Project Affected Persons (PAPs).
The sh24bn now released represents the first portion of the payment, with sh14bn allocated to Buvuma District and sh10bn to Sango Bay. Officials said the remaining funds will be released once verification and disclosure exercises are completed.
MAAIF confirmed that 301 residents in Buvuma, drawn from the villages of Bubembe, Bwaka, Buwanga, Mbakete, and Ndayiga, have already received full compensation.
These payments are part of a broader programme targeting 1,405 PAPs across 11 villages. Ministry officials said the disclosure process in Buvuma has been successfully concluded and that additional payments will be rolled out in phases.
In Sango Bay, however, compensation has not yet begun. The Ministry of Lands is still conducting verification and disclosure, and payments will start once a final report is submitted confirming all beneficiaries.
Government officials reiterated their commitment to ensuring the compensation exercise is completed without further delays. They noted that resolving long-standing grievances is essential for rebuilding trust among affected communities and for maintaining support for the National Oil Palm Project, which remains a major government investment in agricultural industrialization.
The project aims to expand domestic vegetable oil production and reduce Uganda’s reliance on imports by establishing large-scale oil palm plantations alongside smallholder out-grower schemes. Because the initiative requires substantial land, the government is legally obligated to compensate residents whose property was acquired.
Over the years, delays in payment and disputes over valuation have generated frustration among communities in both Buvuma and Sango Bay, prompting the recent push from the President to expedite the process.