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Some of the farmers leaving post bank after withdrawal during the first dispatch in May. By Dramadri Federick Arua city The government of Uganda is yet to settle over 3 billion shillings owed to tobacco farmers in West Nile region, despite promises made years
Some of the farmers leaving post bank after withdrawal during the first dispatch in May.
By Dramadri Federick
Arua city
The government of Uganda is yet to settle over 3 billion shillings owed to tobacco farmers in West Nile region, despite promises made years ago.
About 830 farmers out of 46,000 in West Nile region who sold tobacco to Continental Tobacco Company during the 2018/19 season are yet to receive their funds, exposing ongoing delays and bureaucratic hurdles.
Stephen Candia, a farmer from Uriama Sub County, explained that officials hurried the verification process, leaving many farmers unable to access their money whereas some bank accounts were closed before farmers could withdraw their payments.
Whereas Annet Faida, Treasurer of the West Nile Cooperative Union, said they have repeatedly contacted officials from the Ministry of Trade, Industry, and Cooperatives (MoTIC), but haven't seen meaningful progress. She pointed out that many farmers encounter issues such as lacking receipts or verification problems, which should be addressed carefully rather than dismissed.
"Our records show over 3 billion shillings still unpaid. Some farmers are owed amounts as high as 80 million, 60 million, or even less. These include farmers with receipts and those without. The mistakes come from Ministry officials some lacked proper communication, and bureaucratic delays hold up payments," Faida explained.
In 2018/19, farmers in West Nile sold roughly 24,000 kg of tobacco valued at about 12 billion shillings to Continental Tobacco Company. However, the company paid only around 2.4 billion shillings, leaving a debt of approximately 9.7 billion shillings. Recognizing the problem, the government promised intervention and worked to recover the farmers’ dues.
Farmers later petitioned authorities, threatening legal action against both the government and the tobacco company for breach of the Cooperative Act. This pressure led to a deal in October 2019: Continental Tobacco Company agreed to surrender a factory worth 35 billion shillings as collateral, ensuring repayment of the remaining 17.1 billion shillings owed to farmers of Bunyoro and West Nile Sub Regions.
Since 2018, over 4,600 farmers from districts including Arua, Maracha, Terego, Yumbe, Zombo, Nebbi, and Koboko have repeatedly demanded their payments. It was only in the 2024/25 financial year that the government allocated 10 billion shillings specifically to settle these debts.
Starting February 14, 2025, farmers began undergoing verification in the districts conducted by Ministry of Trade Industries and Cooperatives (MoTIC) officials, and by May 23, many started receiving payments directly into their bank accounts.
Christopher Adia, Chairperson of the West Nile Cooperative Union, noted that the Ministry introduced strict verification procedures. “Some farmers, especially those who lost receipts or sold their rights, faced difficulties because the Ministry had not provided clear instructions on how to verify these cases. Previously, farmers' cooperatives helped by submitting photocopies of receipts to facilitate payments.”
Payment disbursement requires farmers to have bank accounts, except for small amounts below 200,000 shillings. They must present original receipts and introduction letters from local officials including Local Council II’s and Government Intermediary Service Officers (GISOs) who verify and submit their details.
Adia expressed frustration with some banks, which reportedly deliberately closed farmers’ accounts to block their access to funds further delaying payments and complicating the recovery process. "What I want is for those with receipts to be paid accurately and for actions to be taken against those who lost their receipts," Adia stated.
The unpaid dues highlight the ongoing struggle faced by West Nile farmers, who have waited for years to receive what they are owed. The delays reflect systemic issues within government operations, banking practices, and the broader challenge of farmers accessing their rightful earnings. Farmers and cooperatives remain hopeful that issues will be resolved fairly, with transparency and accountability at the forefront.