In the rolling hills of Kanungu District, Uganda’s tea industry is facing a crisis that has pitted farmers against their own association leadership. At the heart of the dispute is a Shs14b payout, which has sparked allegations of extortion and mismanagement. Over 280 tea nursery bed operators claim they were defrauded by their lawyers and association leaders, but a breakaway faction of eight farmers has dismissed these claims, prompting an investigation by the State House Anti-Corruption Unit. The internal rift caught the attention of officials late last year, and detectives have since launched a probe into the management of the funds. As the investigation unfolds, the fate of the tea farmers and the industry hangs in the balance.
Tea Farmers Respond to Corruption Allegations
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. In a signed petition addressed to President Museveni, dated May 26, 2026, the farmers under the Kanungu Tea Nursery Bed Operators Association clarified that they received their full entitlements on their respective bank accounts.
| Aspect | Details |
|---|---|
| Event | Kanungu tea farmers dismiss claims of Shs14b payout extortion |
| Date | May 26, 2026 |
| Location | Kanungu District |
| Key People/Organizations involved | Kanungu Tea Nursery Bed Operators Association, State House Anti-Corruption Unit, President Museveni |
| Status/Current Situation | Investigation launched |
| Official Response | State House Anti-Corruption Unit has started investigations |
| Amount of Payout | Shs14.9 billion |
| Deduction | 30% |
| Reason for Deduction | Voluntary contribution for legal fees, administrative expenses, and operational costs |
| Number of Farmers Involved | Over 280 tea nursery bed operators |
| Date of Earlier Petition | November 12, 2025 |
The farmers 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, was a direct response to an earlier petition dated November 12, 2025. In that petition, eight individual farmers accused the association’s leadership and legal counsel of executing unauthorized deductions from the farmers’ compensation. However, the recent petition from the majority of farmers emphasizes that the deductions were voluntary and not coercive.
The Kanungu tea farmers’ petition to President Museveni highlights the complexity of the issue and the need for clarity on the management of funds. The State House Anti-Corruption Unit (SHACU) had launched an investigation into the matter, prompted by the earlier petition from the breakaway faction of eight farmers. The recent statement from the majority of farmers aims to provide a clearer understanding of the situation and alleviate concerns about potential extortion.
The Tea Industry in Uganda: A Complex Web of Interests
The controversy surrounding the Shs14.9 billion government payout to tea farmers in Uganda has taken a new turn, with over 280 tea nursery bed operators in Kanungu District dismissing allegations of extortion. The farmers, who are members of the Kanungu Tea Nursery Bed Operators Association, have clarified that a 30 percent deduction from their recent payout was a voluntary contribution, not an illegal extortion scheme. This 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’ clarification comes in response to an earlier petition filed by eight individual farmers, who accused the association’s leadership and legal counsel of executing unauthorized deductions from the farmers’ compensation. However, the majority of the farmers have come out to defend their association’s leadership, stating that they received their full entitlements on their respective bank accounts. The statement, witnessed by the lead plaintiff, Mr. Frank Byaruhanga, was a direct response to the earlier petition.
The Kanungu Tea Nursery Bed Operators Association has maintained that the 30 percent deduction was a necessary measure to cover the costs incurred during their legal battle with the government. The association’s leadership has also emphasized that the deduction was a voluntary contribution, and not a mandatory requirement. The controversy has caught the attention of the State House Anti-Corruption Unit, which is currently investigating the management of the funds.
State House Anti-Corruption Unit’s Investigation: A Closer Look
The State House Anti-Corruption Unit’s investigation into the Kanungu tea farmers’ payout has highlighted a contentious issue within the tea industry in Uganda. At the center of the dispute are allegations of extortion and unauthorized deductions from the farmers’ compensation. However, the majority of the farmers have come out to defend the 30 percent deduction from their Shs14.9 billion government payout, arguing that it was a voluntary contribution to cover legal fees, administrative expenses, and operational costs incurred during their multi-year legal battle with the government.
According to a signed petition addressed to President Museveni, the farmers under the Kanungu Tea Nursery Bed Operators Association clarified that they received their full entitlements on their respective bank accounts. The petition, witnessed by the lead plaintiff, Mr. Frank Byaruhanga, was a direct response to 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 emphasized that the 30 percent deduction was willingly remitted to cover legitimate expenses.
The controversy surrounding the tea farmers’ payout has caught the attention of the State House Anti-Corruption Unit, which launched an investigation into the management of the funds. The unit’s probe is aimed at determining the legitimacy of the deductions and whether they were indeed authorized by the farmers. As the investigation unfolds, the tea industry in Uganda is under scrutiny, with many stakeholders calling for transparency and accountability in the management of the tea sector.
Government Response to Corruption Allegations: A Statement
The State House Anti-Corruption Unit (SHACU) 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. In response to the allegations, the farmers 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 in the form of a signed petition addressed to President Museveni, dated May 26, 2026, from the farmers under the Kanungu Tea Nursery Bed Operators Association.
The farmers emphasized that they received their full entitlements on their respective bank accounts, with the 30 percent deduction willingly remitted to cover legal fees, administrative expenses, and operational costs incurred during their multi-year legal battle with the government. This voluntary contribution is a crucial aspect of the farmers’ statement, as it directly addresses the allegations of unauthorized deductions made by the breakaway faction. The farmers’ petition highlights the complexities of the tea industry in Uganda, where multiple interests and stakeholders are involved.
The clarification from the farmers is a significant development in the ongoing corruption investigation, which has been scrutinizing the management of the funds and the role of the association’s leadership and legal counsel. The SHACU investigation is expected to shed more light on the matter, and the farmers’ statement provides a crucial perspective on the events that led to the allegations. The tea farmers’ defense of the 30 percent deduction is a key aspect of their statement, as it seeks to clear their names and provide a transparent explanation for the deductions made from their compensation.
What’s Next for Ugandan Tea Farmers and the Industry
The recent controversy surrounding the Shs14.9 billion payout to Ugandan tea farmers has left many wondering about the future of the industry. Over 280 tea nursery bed operators in Kanungu District have denied allegations of extortion, insisting that a 30 percent deduction from their government compensation was a voluntary contribution. According to the farmers, the deduction was used to cover legal fees, administrative expenses, and operational costs incurred during their multi-year legal battle with the government.
The farmers’ clarification comes after an investigation was launched by the State House Anti-Corruption Unit (SHACU) following a petition by a breakaway faction of eight farmers. The SHACU probe is expected to shed more light on the management of the funds and the role of the association’s leadership and legal counsel. The tea industry in Uganda is a significant contributor to the country’s economy, and any allegations of corruption or mismanagement could have far-reaching consequences.
As the investigation continues, the tea farmers are looking to President Museveni for support and compensation for their unpaid seedlings. The farmers have already received their full entitlements on their respective bank accounts, and they are now seeking to resolve the outstanding issues related to their compensation. The outcome of the investigation and the government’s response to the allegations will be crucial in determining the future of the tea industry in Uganda. The SHACU investigation is expected to be completed soon, and its findings will likely have a significant impact on the industry.
