By Eastafricaobserver | Kampala | Friday May 8, 2026
KAMPALA — Newly constructed shops built over Nakivubo Channel and linked to businessman Hamis Kiggundu of Ham Enterprises were submerged this week as floods paralyzed Kampala, fuelling fresh accusations that the development choked the city’s main drainage.
Drone images taken Wednesday show the structures sitting in a pool of water, with floodwater diverted into St. Balikuddembe Market, New Taxi Park, and Nakivubo Road. Traders estimate losses above Shs3bn from Tuesday’s downpour alone.
THE “AI PLAN” VS REALITY ON GROUND
In 2024, Ham Enterprises presented to State House an AI-generated redevelopment plan for Nakivubo, promising to cover sections of the channel with modern shops while maintaining water flow via wide box culverts.
After the presentation, President Museveni wrote to the Prime Minister instructing her to “facilitate” the project to modernize the area and stop garbage dumping.
Traders and KCCA engineers now say what was built is “totally different from what he promised.”
“The plan had big culverts, inspection points, and buffer zones. What’s on ground is shops sitting on a squeezed channel with small pipes. Water can’t pass,” said Ismail Ddungu, chair of Kampala Arcades Traders Association.
KCCA confirmed it is conducting an “as-built vs approved plan” audit of the Nakivubo development. Results are expected next week.
TIMELINE: FROM OWINO FIRES TO NAKIVUBO FLOODS
2009–2015: OWINO MARKET MYSTERIOUS FIRES
Series of fires gut St. Balikuddembe (Owino) Market. Traders lose stalls, goods worth billions. Police cite “electrical faults,” but probes inconclusive. Thousands vacate after repeated losses. Traders allege fires were “convenient” for redevelopment. No police report has ever linked Ham Enterprises to the fires.
2016–2018: HAM SHOPPING CENTRE RISES
After traders leave, Ham Enterprises constructs Ham Shopping Centre on adjacent land. Modern complex opens. Company says land was legally acquired; project created formal jobs.
March 2024: NAKIVUBO DEMOLITIONS TURN DEADLY
KCCA Deputy ED Benon Kigenyi later told Parliament’s COSASE that “the last demolitions at Nakivubo led to loss of life” when structures collapsed during enforcement.
2024: “AI PLAN” TO STATE HOUSE
Ham Enterprises presents AI-generated plan to redevelop Nakivubo Channel. President Museveni writes to Prime Minister to “facilitate” the project.
March 2025: PARLIAMENT TRIES TO INTERVENE
The Parliamentary Committee on Natural Resources inspects Nakivubo Channel. Finds active construction, no displayed NEMA certificate. Orders works to halt. KCCA issues stop notice March 12, 2025. Construction resumes within a week after OPM cites Presidential facilitation letter. Chair Dr. Emmanuel Otaala: “We were overruled.”
2025: CONSTRUCTION ON NAKIVUBO CHANNEL COMPLETED
New shops built over Nakivubo Channel by Ham Enterprises. Critics say structures on ground are “totally different” from AI plan — culverts narrowed, shops directly on channel.
April 2026: COURT CASE FILED
Traders + Save Kampala Wetlands Coalition file High Court Misc. Cause No. 45 of 2026. Allege construction without full NEMA/KCCA approvals and encroachment on drainage reserve. Seek demolition order. Ham Enterprises denies, says all approvals secured.
May 6, 2026: KAMPALA FLOODS
Heavy rains submerge new Nakivubo shops. Water diverts into Downtown, St. Balikuddembe, Taxi Park. Traders count Shs3bn+ losses. KCCA launches audit.
HISTORY: WHY CRITICS CALL THESE “ANTI-PEOPLE PROJECTS”
Civil society and traders use “anti-people” to describe three patterns they attribute to Ham Enterprises:
Displacement Before Development
Owino case: Market fires 2009-2015 force traders out → Ham Shopping Centre built 2016-2018.
Claim: Informal traders suffer losses, then prime land is redeveloped into private malls.
Ham response: “We legally acquired land after traders left. Fires were not our doing.”
Building on Public Drainage & Wetlands
Examples: Nakivubo Channel shops; projects in Kisenyi, Bwaise where NEMA issued 2022 restoration orders.
Claim: “Ham is only interested in constructing as many shops as possible to make money and has zero regard to the environment or surrounding neighborhood. Many of his buildings are in swamps and in bad conditions,” said Diana Nabirye of Save Kampala Wetlands Coalition.
Ham response: Projects “add value to wasteland” with engineering solutions on KCCA/NEMA-approved sites.
Political Protection vs Parliamentary Oversight
Examples: March 2025 Natural Resources stop notice overruled; COSASE 2024 call for prosecution after Kigenyi’s “loss of life” testimony ignored.
Claim: MPs told Eastafricaobserver Ham has never been charged “due to his connections.” “We recommended prosecution. The files went cold,” said one COSASE member.
Ham response: “We follow lawful approvals. Parliament was misinformed. The President supported legal investment.”
COSASE: “LOSS OF LIFE” AND STALLED PROSECUTION
In prior hearings, KCCA Deputy ED Benon Kigenyi told COSASE that the last demolitions at Nakivubo led to loss of life during enforcement.
Following that testimony, MPs on COSASE asked for Hamis Kiggundu to be prosecuted over alleged illegal construction and encroachment.
He has never been charged. The DPP’s office had not responded to requests for comment by press time.
LEGAL FIGHT: “NO APPROVALS” ALLEGATION
The ongoing High Court suit repeats many of Parliament’s 2025 concerns. It alleges the Nakivubo project commenced without full NEMA and KCCA approvals and encroaches on a public drainage reserve contrary to the Physical Planning Act.
Ham Enterprises denies illegality: “All works had requisite KCCA and NEMA approvals. We built exactly what was passed. Flooding is caused by garbage and failure to desilt from Makerere to the lake.”
NEMA is listed as a respondent and will file its defense.
KCCA POSITION
KCCA Deputy Executive Director: “No one is above the law. If any structure deviated from approved plans or blocks drainage, we shall act. The audit will guide us.”
WHAT NEXT
Court: Hearing of the Nakivubo demolition suit expected in June 2026.
KCCA audit: Compliance report on Nakivubo shops due next week.
Parliament: Natural Resources Committee to summon KCCA and NEMA again after the floods. COSASE members say they will revisit why prosecution was not pursued.
Rains: More downpours forecast. Traders demand KCCA open the channel before further losses.
KEY FACTS: DISPUTED VS UNDISPUTED
Undisputed:
May 2026: New Nakivubo shops were submerged; floods worsened.
Kigenyi told COSASE that prior Nakivubo demolitions caused loss of life.
Natural Resources Committee tried to halt Nakivubo works in March 2025.
Court case over Nakivubo construction is active.
Disputed/Alleged:
That construction was illegal or deviated from approvals.
That Ham Enterprises was connected to Owino Market fires.
That “connections” prevented prosecution.
Editor’s Note:
Allegations of illegal construction are before court and have not been proven.
Police have never charged Ham Enterprises in relation to Owino Market fires or Nakivubo construction.
Kigenyi’s COSASE testimony and MPs’ call for prosecution were confirmed by two committee members. We have requested official Hansard records.
Eastafricaobserver has requested copies of the “AI plan,” the President’s letter, NEMA/KCCA approvals, and DPP comment. We will update when received.