Nytil's Shs144 Billion Expansion Halted by Land Dispute

Nytil Group’s ambitious plan to establish a $40 million (approximately Shs144 billion) spinning plant, projected to consume 30% of Uganda’s annual cotton production and create 500 jobs, is facing significant delays. The textile giant aims to deepen local value addition by processing cotton into yarn, fabrics, and garments for both domestic and export markets.

However, the project’s progress has been impeded by a land dispute. Nytil claims an access road, known as Veterinary Lane, was illegally constructed through land earmarked for the spinning plant. “The project is now delayed because of the illegal road constructed through the NYTIL land where the investment is supposed to take place,” stated Nytil Corporate Affairs Director, Mr. Richard Mubiru.

The dispute is further complicated by competing land titles. Nytil alleges that freehold titles issued after 2020 to individuals like Mr. Obadiah Lalobo and a Njeru Municipality-based company were created within land that Nytil has held a title for since 1951. Nytil contends this constitutes “double titling” and has petitioned the Commissioner for Land Registration to cancel these recent titles.

Mr. Lalobo, however, denies any wrongdoing, asserting he conducted due diligence and found no disputes on the land registry at the time of his purchase. He argues that buyers who receive a clean search report should not be penalized for systemic issues. He also disputes Nytil’s claims regarding the access road, suggesting it is a public thoroughfare part of the municipality’s development plans.

Despite the challenges, Nytil states it has no intention of relocating the project and is actively engaging with the Minister for Investment and the Uganda Investment Authority to find a resolution. The government, through the State Minister for Investment and Privatisation, Ms. Amina Mukalazi, has acknowledged the situation and plans to convene a stakeholder meeting to address the land issues and ensure investment remains seamless.

Beyond the spinning plant, Nytil also has plans for a 105-acre textile business park, designed to attract further investment and jobs into the sector. The company is seeking government support for infrastructure for this broader development. This expansion is crucial for strengthening Uganda’s textile value chain, from cotton farming to garment manufacturing.

Source: Daily Monitor (Uganda)