Traders at St Balikuddembe Market, commonly known as Owino Market, have reported receiving compensation after the overnight demolition of a structure that housed dozens of shops, though questions remain over who authorised the operation.
By 12 noon on March 8, 2026, journalists visiting the market found the demolished area cordoned off with iron sheets.
A police patrol vehicle was stationed at the site to maintain order and prevent further disruptions.
Trader Robert Mukalazi told reporters that more than 46 traders affected by the demolition were compensated with three million shillings each and were promised the opportunity to rent reconstructed shops once rebuilding is complete.
He also said that some traders were aware the demolished structure was built near land earmarked for redevelopment along the Nakivubo Channel but continued operating there until the demolition occurred.
“I cannot confirm who authorised the demolition, but traders were given some compensation for the shops that were destroyed. We hope to return to new shops once the reconstruction is completed,” Mukalazi said.
The money, traders the Nile Post spoke to said, was offered by a businessman who has interest in redeveloping the area. But this news website could not get a comment from the businessman and has chosen not to name him for legal reasons.
The overnight demolition, which reportedly took place around 10 p.m. on March 7, 2026, has drawn criticism from city officials and raised concerns about the enforcement of regulations in Kampala’s commercial hubs.
Kampala Capital City Authority (KCCA) spokesperson Daniel Nuwabiine said the structures were demolished without proper permits from the city. He confirmed that arrests had been made to identify those responsible and that investigations are ongoing.
“Allow the legal and investigation process to take place. KCCA is on the ground and arrests have been made since Saturday when the demolition occurred,” Nuwabiine said.
He added that Executive Director Sharifah Buzeki personally visited the scene within 45 minutes to assess the situation.
Outgoing Kampala Lord Mayor Erias Lukwago also criticised the demolition, suggesting that the city authority may lack the capacity to prevent such operations and calling for clarity on who authorised them.
“KCCA has no capacity to halt what is happening at St Balikuddembe Market,” Lukwago said during an interview. He urged parliament and other oversight bodies to follow up on pending investigations into KCCA matters.
The market, one of Kampala’s busiest trading centres, has previously seen tensions between traders and developers over land near the Nakivubo Channel.
Rapid redevelopment of commercial areas in the city often places traders at risk, especially when proper authorisation and communication are not followed.
Police confirmed that investigations are ongoing and warned the public to avoid taking the law into their own hands. Authorities have also urged traders, residents, and stakeholders to remain calm as the legal process continues.
While traders report receiving compensation, the broader question of accountability for the demolition and the protection of businesses in high-density commercial areas remains unresolved.
