In the lush tea gardens of Kanungu District, Uganda, a long-standing dispute has brewed between tea farmers and their association leadership. At the heart of the matter is a 30% deduction from the payout, which has sparked a heated debate among the farmers. The controversy has caught the attention of the authorities, with the State House Anti-Corruption Unit (SHACU) launching an investigation into the management of the funds. Over 280 tea nursery bed operators in Kanungu District have been affected by the dispute, which has been ongoing for some time. The situation has been further complicated by allegations of extortion, with claims of a Shs14b payout being made. As the investigation unfolds, the farmers are standing firm in their defense of the 30% deduction, leaving many questions about the fairness of the payout and the role of the association leadership.
Tea Farmers Respond to Payout Dispute Allegations
Over 280 tea nursery bed operators in Kanungu District have come out to clarify that a 30 percent deduction from their recent Shs14.9 billion government payout was a voluntary contribution, not an illegal extortion scheme. The farmers, under the Kanungu Tea Nursery Bed Operators Association, have denied allegations that they were defrauded by their lawyers and association leadership. This clarification comes after an earlier petition dated November 12, 2025, in which eight individual farmers accused the association’s leadership and legal counsel of executing unauthorized deductions from the farmers’ compensation.
In a signed petition addressed to President Museveni, dated May 26, 2026, the farmers clarified that they received their full entitlements on their respective bank accounts. They noted that the 30 percent deduction was willingly remitted to cover legal fees, administrative expenses, and operational costs incurred during their multi-year legal battle with the government. The statement, witnessed by the lead plaintiff, Mr. Frank Byaruhanga, is a direct response to the earlier petition that sparked an investigation into the management of the funds by the State House Anti-Corruption Unit (SHACU) late last year.
The farmers’ clarification has brought an end to the internal rift that caught the attention of the SHACU. The association’s leadership has maintained that the deduction was necessary to cover the costs associated with their long-standing dispute with the government. The tea farmers’ decision to clarify the matter has brought a sense of relief to the community, as they continue to await the outcome of their multi-year legal battle.
Payout Dispute Details and Controversy Surrounding Shs14b
Over 280 tea nursery bed operators in Kanungu District have denied allegations that they were defrauded by their lawyers and association leadership. The farmers clarify that a 30 percent deduction from their recent Shs14.9 billion government payout was a voluntary contribution, not an illegal extortion scheme. This clarification comes after an earlier petition dated November 12, 2025, in which eight individual farmers accused the association’s leadership and legal counsel of executing unauthorized deductions from the farmers’ compensation.
The farmers under the Kanungu Tea Nursery Bed Operators Association have released a signed petition addressed to President Museveni, dated May 26, 2026. In the petition, they stated that they received their full entitlements on their respective bank accounts. They noted that the 30 percent deduction was willingly remitted to cover legal fees, administrative expenses, and operational costs incurred during their multi-year legal battle with the government. The statement, witnessed by the lead plaintiff, Mr. Frank Byaruhanga, aims to clear the air on the controversy surrounding the payout.
The internal rift caught the attention of the State House Anti-Corruption Unit (SHACU) late last year after the breakaway faction of eight farmers petitioned the President, prompting detectives to launch an investigation into the management of the funds. The farmers’ clarification is a direct response to the allegations, and it remains to be seen how the situation will unfold in the coming days.
Government Response to Payout Dispute and Farmer Concerns
The government has been urged to address the concerns of tea farmers in Kanungu District, who have denied allegations of being defrauded by their lawyers and association leadership. Over 280 tea nursery bed operators have clarified that a 30 percent deduction from their recent Shs14.9 billion government payout was a voluntary contribution. The farmers noted that the deduction was willingly remitted to cover legal fees, administrative expenses, and operational costs incurred during their multi-year legal battle with the government.
The clarification comes after an earlier petition was filed with the State House Anti-Corruption Unit (SHACU) by a breakaway faction of eight farmers. The petition accused the association’s leadership and legal counsel of executing unauthorized deductions from the farmers‘ compensation. However, the majority of farmers have now spoken out to defend their decision to make the voluntary contribution. They have also clarified that they received their full entitlements on their respective bank accounts, with no deductions made without their consent.
The tea farmers have emphasized that they are satisfied with the payout and the deductions made to cover their costs. The government has been urged to focus on addressing the concerns of the farmers and to support the tea industry in Uganda. The tea farmers have expressed their gratitude to the government for the payout and have called for continued support to help them grow their businesses and improve their livelihoods.
Impact of Payout Dispute on Tea Farmers and Industry
Over 280 tea nursery bed operators in Kanungu District have denied allegations that they were defrauded by their lawyers and association leadership. The farmers clarify that a 30 percent deduction from their recent Shs14.9 billion government payout was a voluntary contribution, not an illegal extortion scheme. This clarification comes after an earlier petition, dated November 12, 2025, in which eight individual farmers accused the association’s leadership and legal counsel of executing unauthorized deductions from the farmers’ compensation.
The farmers, under the Kanungu Tea Nursery Bed Operators Association, have issued a signed petition addressed to President Museveni, dated May 26, 2026. In this petition, they noted that the 30 percent deduction was willingly remitted to cover legal fees, administrative expenses, and operational costs incurred during their multi-year legal battle with the government. The farmers emphasized that they received their full entitlements on their respective bank accounts, dismissing claims of Shs14b payout extortion.
The dispute has caught the attention of the State House Anti-Corruption Unit (SHACU), which launched an investigation into the management of the funds. The farmers’ clarification aims to clear their names and provide transparency into the use of their compensation. The controversy surrounding the payout dispute has raised concerns about the management of funds and the role of association leadership and legal counsel in the process.
What’s Next for Tea Farmers Amid Ongoing Payout Dispute
The tea farmers in Kanungu District have denied allegations of being defrauded by their lawyers and association leadership. Over 280 tea nursery bed operators have clarified that a 30 percent deduction from their recent Shs14.9 billion government payout was a voluntary contribution, not an illegal extortion scheme. This clarification comes after an earlier petition dated November 12, 2025, in which eight individual farmers accused the association’s leadership and legal counsel of executing unauthorized deductions from the farmers’ compensation.
The farmers have provided a signed petition addressed to President Museveni, dated May 26, 2026, in which they explained that the 30 percent deduction was willingly remitted to cover legal fees, administrative expenses, and operational costs incurred during their multi-year legal battle with the government. The statement, witnessed by the lead plaintiff, Mr. Frank Byaruhanga, confirms that the farmers received their full entitlements on their respective bank accounts. This development has shed new light on the ongoing payout dispute, with the farmers seeking to clear their names and reputation.
The tea farmers’ clarification has significant implications for the ongoing payout dispute, which has caught the attention of the State House Anti-Corruption Unit (SHACU). The unit launched an investigation into the management of the funds after a breakaway faction of eight farmers petitioned the President, prompting detectives to look into the matter. The farmers’ denial of extortion allegations and their explanation of the 30 percent deduction are crucial in understanding the complexities of the payout dispute and its impact on the tea farmers and industry.
