news 6 June 2026 Daily Monitor (Uganda)
Kanungu tea farmers deny fraud, uphold 30% deduction for legal fees
Over 280 tea nursery bed operators in Kanungu District have refuted claims of fraud regarding a 30% deduction from a Shs14.9 billion government payout, stating it was a voluntary contribution for legal and administrative expenses. The farmers have welcomed an investigation by the State House Anti-Corruption Unit. Source: https://www.monitor.co.ug/uganda/news/national/kanungu-tea-farmers-dismiss-claims-of-shs14b-payout-extortion-defend-30-deduction-5487550
Tea farmers in Kanungu District have vehemently denied allegations of extortion and fraud concerning a recent payout of Shs14.9 billion from the government. A group of over 280 nursery bed operators, operating under the Kanungu Tea Nursery Bed Operators Association, has clarified that a 30 percent deduction from this sum was a consensual decision to cover legal fees and operational costs.
This clarification comes in response to a petition submitted by a faction of eight farmers who accused the association’s leadership and legal team of unauthorized deductions. However, the majority of farmers, in their own petition to President Museveni, asserted that they received their full entitlements directly into their bank accounts and willingly remitted the 30 percent.
The dispute stems from a long-standing legal battle initiated in 2019, where the nursery bed operators sued the government for Shs143 billion owed for tea seedlings supplied under an agricultural initiative. While the government made some payments, delays led to further legal action and even presidential intervention.
Mr. Frank Byaruhanga, the lead plaintiff and chairperson of the association, stated that a general meeting in May 2018 unanimously agreed on the 30 percent contribution. He explained that this collected fund was crucial for managing their prolonged legal engagement with the government and covering administrative necessities.
Mr. Byaruhanga welcomed the ongoing investigation by the State House Anti-Corruption Unit (SHACU), which was prompted by the breakaway faction’s petition. He expressed confidence that the probe would exonerate the association, noting that a vast majority of their legitimate members have confirmed their voluntary payment of the deduction. The farmers are awaiting the unit’s final report.