Business 18 August 2026 Daily Monitor (Uganda)
Kabale Council Approves Peat Mining, Boosting Job Prospects
Kabale District Council has greenlit Peate Energy Solutions Company Ltd's peat extraction operations, sparking optimism for job creation and increased district revenue. The approval comes after a lengthy council session that also saw other potential investors face deferrals. Source: https://www.monitor.co.ug/uganda/news/national/hope-for-job-seekers-as-kabale-council-approves-peat-mining-5562726
Kabale District Council has officially sanctioned Peate Energy Solutions Company Ltd to commence peat extraction from degraded lowlands. This decision is being hailed as a significant development for thousands of job seekers in the region and is anticipated to boost the district’s revenue through royalties.
The approval was granted during an extraordinary council meeting on Monday, presided over by Council Speaker Ms. Flavia Nyinakiiza Kanagizi. While Peate Energy Solutions received the go-ahead, the council deferred decisions on operations for Yogi Steels Company Ltd, Shivaji Minerals Limited, and Magasan Industries Uganda Ltd. These companies reportedly rejected the terms and conditions presented in draft Memoranda of Understanding with district authorities.
Mr. Pius Katumba, the Managing Director of Peate Energy Solutions, expressed gratitude for the council’s approval, stating that their company will extract peat from the lowlands in Kitumba, Buhara, and Kamuganguzi sub-counties, as well as Katuna town council. The extracted peat will serve as an alternative power source for cement processing factories. The company targets an extraction of 15,000 tons per month for five years, creating an estimated 3,500 jobs with a weekly wage of Shs72,000. Mr. Katumba assured the council that the extraction process would involve picking a thin layer of peat, avoiding deep excavations, and adhering to district guidelines for land restoration.
The district council emphasized the importance of employing local residents from the extraction areas and ensuring timely payment of wages. Meanwhile, representatives for Yogi Steels Company Ltd cited a lack of involvement in the MoU drafting process as their reason for rejection, indicating a desire for further harmonization of the agreement.
District leaders, including Resident District Commissioner Maj. Godfrey Katamba and LCV Chairman Mr. Denis Nzeirwe Ndyomugyenyi, stressed their commitment to working with compliant investors who adhere to district regulations regarding environmental restoration and corporate social responsibility. They warned against “stubborn investors” and any attempts at economic sabotage in the district’s mineral development sector.