The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) announced the disbursement of over UGX 24 billion in compensation to project affected persons (PAPs) under the National Oil Palm Project (NOPP).
The update was delivered during a press briefing at the Uganda Media Centre on 05th December, 2025, where Minister of State for Agriculture, Fred Bwino Kyakulaga, emphasized the government’s commitment to fair and timely redress for communities impacted by oil palm expansion.
The National Oil Palm Project, a flagship initiative aimed at boosting commercial agriculture and economic growth through sustainable oil palm cultivation, has faced scrutiny in recent years over land acquisition practices.
Launched in collaboration with partners like Solidaridad East & Central Africa and funded in part by the International Fund for Agricultural Development (IFAD), the project targets districts including Buvuma, Kalangala, Buikwe, Masaka, and Mayuge. It seeks to support approximately 5,000 smallholder farmers while promoting eco friendly practices, such as agroforestry and carbon sequestration, to mitigate environmental risks.
While addressing the media, Bwino, stated that t of the 52bn required, 24bn have been recieved detailed the breakdown that UGX 14 billion allocated specifically for PAPs in Buvuma, and UGX 10 billion for those in the Sango Bay region.
“This is not just about money, it’s about restoring trust and ensuring that no Ugandan is left behind in our march toward agricultural transformation,” Bwino stated.
The minister highlighted the broader benefits of NOPP, noting that it aligns with Uganda’s National Development Plan III by creating jobs, enhancing export revenues, and fostering value-added products like cooking oil, soaps, and creams.
He also addressed environmental safeguards, referencing the project’s dedication to buffer zones and health protocols to prevent ecological degradation a nod to criticisms from environmental advocates who have warned of deforestation risks in sensitive island ecosystems.
The ministry plans to host validation workshops in affected districts to finalize disbursements, with full implementation targeted by mid 2026 coinciding with the project’s smallholder planting goals in Buvuma.
As Uganda eyes first oil production in late 2026 and ramps up agricultural exports, today’s briefing underscores the delicate balance between economic ambition and social equity with compensation now underway.
The announcement marks a direct response to a presidential directive, who in May 2024 instructed MAAIF and the Ministry of Lands, Housing and Urban Development (MLHUD) to collaborate with oil palm investors in verifying land ownership and expediting payouts.
