Government is to compensate more than 1,300 Tobacco farmers in Hoima
district who were not paid by Tobacco Companies.
This comes after President Yoweri Museveni directed the Ministries of trade and
finance to expedite the compensation process for the affected farmers.
The farmers have since August 2018 been demanding over two billion shillings
from mainly three tobacco companies NIMATIBACK, Continental tobacco and Tropical
Addressing the affected farmers at Bunyoro Parliamentary Building compound
–Chambers on Wednesday evening, Florence Kiconco, the State House head of legal
department said that the President was concerned over the failure by the
tobacco companies to pay the farmers.
She says government has decided to use its money to compensate farmers with
genuine receipts and necessary documents as soon as possible and deal with the
tobacco companies later.
//cue in:” President Yanjirangu nyije…
Cue out:…recoveringa sente ezi.”//.
Samuel Kisembo, the Hoima Resident District Commissioner said he
has been informed that the three companies were denied licenses to contract
farmers for Tobacco growing this year.
He says government is mooting a plan to start assessing the financial
capabilities of any tobacco company before it contracts farmers to ensure
//Cue in:”Sente Zinu Tizikuruga…
Cue out:…Tusesure sente Zanyu.”//.
John Kisembo, a farmer in Kigorobya says they had no hope that
their money would be paid by the Tobacco companies saying he is happy now that
government has come in to pay them.
Joseph Barongo, a farmer in Kyabigambire Sub County says government should
completely revoke the licenses for the companies so that other genuine companies
are licensed to deal with the farmers.
In January, the Ministry of Trade halted the operations of three Tobacco Companies
in Hoima district. The companies are Continental Tobacco Company
Limited, NIMA Tobacco Company Limited and Tropical Tobacco Company limited.
They were accused of failing to pay farmers over 2 Billion shillings for
tobacco they supplied between July and December 2018.
In a letter dated January 17th, 2019 and signed by the late Julius B
Onen, the former Permanent Secretary Ministry of Trade, Industry and
Co-operatives, the companies were stopped from transacting any tobacco-related
business in Hoima district unless they pay all the farmers.
In the same letter, the trade ministry also issued operational
licenses to four companies to transact business in the district.
They include Alliance One Uganda Tobacco Company, Global Leaf
Holdings, Meridian Tobacco Company and Uganda Tobacco Service.