By Spy Uganda
Parliament has urged the Government to seek compensation from the Kenyan Government following the burning of Uganda House in Nairobi during protests against the Finance Bill in June 2024.
The recommendation is contained in the report by the Budget Committee on the 2025/26 Budget Framework Paper, presented by Achia Remigio, Vice Chairperson of the Budget Committee, during last week’s plenary sitting.
“The Committee proposed that the Government of Uganda should pursue compensation from the Government of Kenya for the destruction of Uganda House in Nairobi during the riots,” said Remigio (Pian County).
Parliament was informed that Uganda House in Nairobi had been refurbished at a total cost of UGX 26.309 billon of which UGX 24.439 billion was allocated for project works and UGX 1.869 billion for consultancy supervision. The refurbishment was intended to increase Uganda’s rental collections to UGX 4Bn upon full occupancy of the building.
Following the destruction, a detailed assessment of the damage and proposed remedial works was conducted by the project consultant, estimating the full restoration cost at UGX 7.2Bn.
The building was extensively damaged by fire during demonstrations against the Finance Bill 2024 in Kenya on 25th June 2024, just days before its scheduled official commissioning on 28th June 2024.
In the proposed budget for FY2025/26, Uganda’s High Commission in Nairobi has been allocated UGX 4.401Bn for the restoration of Uganda House to realize the initial objectives of the refurbishment. The restoration is planned in two phases, but this still leaves the Embassy with a funding gap of UGX 949 million.
The first phase, covering the Ground and Second Floors, is scheduled for execution between February and June 2025, at an estimated cost of UGX 2Bn. The initial restoration phase will be funded by the Mission through gains and savings from Uganda House project expenses, amounting to UGX 1.85Bn.
The second phase, for which UGX4.401Bn has been allocated in the FY2025/26 budget, will cover the remaining floors and is set to commence in July 2025. However, the mission still faces a funding gap of UGX 949 million to complete the restoration.
While appearing before Parliament’s Foreign Affairs Committee in January 2025, the Ministry of Foreign Affairs informed MPs that the Kenya Police had initiated a forensic investigation into the fire, which is still ongoing.
The Ministry also revealed that discussions had been held with Ambitious Construction Co. Ltd, an insurance firm hired during the refurbishment, in line with contractual terms. Although the insurer assessed the damage, the response regarding the insurance claim remains pending.
According to the Ministry of Foreign Affairs, the Government of Uganda is currently negotiating with the Government of Kenya to explore the possibility of compensation for the damage.
“The Committee notes that the actions taken by the Government so far have not yet yielded tangible results. Meanwhile, the Government continues to lose Non-Tax Revenue (NTR) that could have accrued from renting out the commercial building. It is, therefore, economically prudent for the Government to expedite the restoration of Uganda House to start generating revenue from the property as soon as possible, even as efforts to secure compensation from the insurers and the Government of Kenya continue,” stated the Budget Committee’s report.
Parliament approved the recommendation to allocate an additional UGX 949 million to the Uganda High Commission in Nairobi, in addition to the UGX 4.401Bn already provided in the FY2025/26 budget, to fully fund the restoration of Uganda House.
This development comes as Uganda faces a similar challenge at its Mission in Kinshasa, DRC, which was also destroyed during protests following the outbreak of war between the DRC Government and M23 rebels after their takeover of Goma Town in Eastern DRC.
