Sunday, August 23, 2026
  • About
  • Advertise
  • Careers
  • Contact
Insight Post Uganda
  • Home
  • NewsHot
    • Health
    • Politics
    • Religion
    • Lifestyle
    • World News
    • Tourism
    • Environment
    • Agriculture
  • Business
    Police headed by DPC Kamukama arresting CN Sugar workers

    CN Sugar Commissioning Pits Industrialisation Drive Against Uganda’s Sugar Licensing Rules

    Coca-Cola Unveils Premier League Campaign With Shs1m Monthly Rewards For Ugandan Fans

    Coca-Cola Unveils Premier League Campaign With Shs1m Monthly Rewards For Ugandan Fans

    A section of a road in Njeru Municipality left severely damaged after a deep section of the road collapsed, disrupting access for residents.

    Njeru Residents Demand Probe Into Road Funds As Planned Works Stall

  • Sports
    Eurofoam Marketing Manager Claire Kemigisha buys the first jersey from Mukono Diocese Bishop Enos Kagodo to launch the Mukono Cathedral Run

    Mukono Diocese Turns To Community Run To Raise UGX5 Billion For Cathedral

    Rogers Sebyondwa

    Bulemeezi Player Dies After Suffering Injuries In Kyaggwe Masaza Cup Match

    Cissy Nantongo

    Sports Fraternity Mourns Former She Corporate Captain Cissy Nantongo

  • Education
    Dr. Asuman Lukwago, PS Ministry of Education.

    COSASE Grills Education Service Commission Over Missed Targets, Teacher Confirmation Delays

    The National Council for Higher Education (NCHE) headquarters

    Universities Submit 700 Competence-Based Programmes To NCHE For Accreditation

  • In Luganda
    Betty Nambooze, Mukono Municipality MP

    Kibuule Akubye Mu Nambooze Ebituli, Talina Kyakoledde BannaMukono Okujjako Okujoboja

    Omubaka Gwetwalonda Teyadda-Abekyampisi Betondedde Kibuule

    Omubaka Gwetwalonda Teyadda-Abekyampisi Betondedde Kibuule

    Counsel George Musisi ng'alaga emu ku kaadi mu lukungana lw'amawulire

    Munnamateeka Wa NUP Atambula Nju Ku Nju Ng’ Asaggula Obuwagizi  

  • In Photos
    Ronald Kibuule at Mukono recently.

    Kibuule Poised for Return as Museveni Signals Endorsement in Mukono North

    Katikiro presiding over the opening of the renovated official residence of the Buddu County Chief at Ssaza grounds in Masaka City on Tuesday. Pictures by Robert Nsubuga.

    Pictorial:  Katikiro Mayiga Slams Masaka People Over Poor Hygiene

    Ismael-Kifudde-the-Mukono-Police-Division-Officer-in-Charge-directing-Nambooze-not-to-use-the-route-heading-to-town-center

    Moments of Excessive Force Against Betty Nambooze in Recent General Elections

  • Profiles
    Rwakakooko before PAC

    Parliament Questions UEDCL Preparedness After Umeme Takeover

    Brig. Gen. Kiyengo (center) posing for the photo with the members of Nakifuma Rotary Club who promised to attend his book launch.

    CUTTING THROUGH HELL: UPDF Medic Chronicles Uganda’s Silent War in Somalia Through Powerful Memoir

    L-R MP Mawogola South (Sembabule)-Goreth Namugga, Councillor Amiri Kiggundu, COTFONE Coordinator-Kayinga Yisito Muddu and Mr Xavier Ejoyi, Country Director ActionAid International Uganda at the award event

    National Citizens’ Integrity Awards 2024: Unsung Heroes Celebrated

  • Op-Ed
    • Editorial
    • Opinion
  • Login
No Result
View All Result
Insight Post Uganda
Home Business

Billions to Waste: Court Cancels Sugar, Jaggery Mill Licenses Issued by Trade Ministry

Insight Post Uganda by Insight Post Uganda
January 20, 2025
in Business
Reading Time: 6 mins read
A A
0
Namayingo district leaders and CN sugar investors posing for a photo with the First Deputy Prime Minister, Rebecca Kadaga.

Namayingo district leaders and CN sugar investors posing for a photo with the First Deputy Prime Minister, Rebecca Kadaga.

The High Court in Kampala has declared all licenses issued by the Ministry of Trade, Industry, and Cooperatives to sugar and jaggery mills since 2010 as null and void.

The court’s decision, delivered by Civil Division Judge Dr. Douglas Singiza on Monday, follows a successful petition filed by the Uganda Sugar Manufacturers Association (USMA).

Related posts

Police headed by DPC Kamukama arresting CN Sugar workers

CN Sugar Commissioning Pits Industrialisation Drive Against Uganda’s Sugar Licensing Rules

August 23, 2026
Minister of Trade, Industry and Cooperatives, Hon. Sanjay Tanna, Kotecha

Yogi Group Lauded for Supporting National Blood Donation Campaigns

June 29, 2026

The petition was filed against the Attorney General, Minister of Trade, Industry, and Cooperatives, CN Sugar Limited, and Shakti Sugar Limited.

In 2024, the USMA, which represents major sugar manufacturers in Uganda, including Kakira Sugar Works, Kinyara Sugar Works Ltd, the Sugar Corporation of Uganda Ltd, Bugiri Sugar Ltd, and Sango Bay Estates Ltd, petitioned the court to declare the licenses issued to CN Sugar Limited and Shakti Sugar Limited as illegal. 

The association argued that the Ministry of Trade’s actions of giving the said companies licenses disguised as Letters of No Objection were in contravention of the Sugar Act.

The Act stipulates that licenses for sugar and jaggery mills should be issued by the Uganda Sugar Board (USB). However, the USB does not exist, creating a legal and policy vacuum. 

The court found that the Ministry of Trade’s failure to establish the Uganda Sugar Board (USB) was a breach of statutory duty, as required by Section 4 of the Sugar Act. 

In its response, CN Sugar Limited, through its director Petel Namit, argued that the proposed amendments to the Sugar Act, which sought to delete the provisions dealing with the Uganda Sugar Board and replace it with a “Sugar Industry Stakeholders Council,” were to blame for the lack of a regulatory framework.

 However, the court rejected this argument, finding it to be “ridiculous.”

Namit told the court that his company invested $35 million in reliance on the Sugar Policy of 2010 and assurances from the regulatory authority under the Ministry of Finance.

He claimed that this investment was made in good faith, expecting to carry out sugar-related activities.

On the other hand, Patel Ravikumar Ramalal of Shakti Sugar Limited pointed to the National Sugar Policy of 2010, which provides for the granting of licenses to new sugar factories for nucleus estates of approximately 500 hectares. 

Ramalal argued that Shakti did not require a sugar license from the Attorney General or the Ministry of Trade, Industry, and Cooperatives (MTIC) since it already possessed an unqualified foreign investment license from the Uganda Investment Authority (UIA).

This license was granted on November 15, 2022, for sugar manufacturing in the Nalyamabidde Bubajjwe Kayunga district.

The license required compliance with various regulations, including the National Environmental Act and the Investment Code Act.

Shakti’s operational license was further supported by the Kayunga district council’s decision to grant a development permit certificate on May 19, 2023. Shakti argued that to commence operations, it only needed to present an Environmental Impact Assessment Certificate from the National Environment Management Authority.

The development permit also required compliance with district sanitation and health standards, which Shakti claimed it fully met. 

Notably, Shakti argued that the absence of formal criminal charges against it under the Sugar Act implied that its license was lawfully granted by the UIA.

However, Acting Commissioner Denis Ainebyona, representing the Attorney General and MTIC, clarified that CN Sugar Limited and Shakti Sugar Limited had only established a nucleus estate and a warehouse, not an actual sugar mill.

He emphasized that a sugarcane nucleus estate is merely a preliminary step toward obtaining a sugar mill license and does not, in itself, constitute a sugar mill license.

MTIC acknowledged that it had merely encouraged CN Sugar Limited and Shakti Sugar Limited to establish nucleus estates, a process that does not require licenses.

In his ruling, Judge Singiza noted that the Ministry of Trade’s actions were not only illegal but also undermined the existing 2010 government policy on sugar in Uganda.

The court declared that the establishment of CN and Shakti sugar and jaggery mills within a 25-kilometer radius of other existing sugar and jaggery mills was contrary to government policy on sugar, as amplified by the presidential guidance on the zoning of sugar business enterprises. 

The court also found that the Ministry of Trade had granted licenses to CN Sugar Limited and Shakti Sugar Limited without following the required procedures.

The court noted that Local Council One (LC1) chairpersons had issued Letters of No Objection (LONOs) to the two companies, which were then used to obtain licenses from the Ministry of Trade.

However, the court found that the LONOs were not a substitute for the licenses required by law.

“The arguments of all the respondents remain that it is wrong to construe the Letters of No Objection granted to CN by the MTIC as a disguised licence when they were merely administrative requirements by the UIA.

As already determined and in agreement with counsel for the USMA, the LONOs given to CN and Shakti were permissions which were illegally used to establish sugar factories in different districts,” said Singiza.

Judge Singiza observed that the failure by the Ministry of Trade to establish the Uganda Sugar Board had created a legal and policy vacuum, which had been exploited by CN Sugar Limited and Shakti Sugar Limited.

The court noted that the two companies had taken advantage of the situation to establish their sugar and jaggery mills, which was contrary to the law and government policy.

The court declared that the acts of the Ministry of Trade in licensing CN Sugar Limited and Shakti Sugar Limited, or any other sugar enterprise, to establish and operate sugar and jaggery mills were unlawful. 

The court also declared that the failure to constitute and put in place the USB was illegal.

This is among the ten orders made against the government and the two companies.

Additionally, the court declared that the establishment of CN and Shakti sugar and jaggery mills within a 25-kilometer radius of other existing sugar and jaggery mills is contrary to the government policy on sugar, as amplified by the presidential guidance on the zoning of sugar business enterprises. 

The court issued an order of certiorari cancelling all purported new sugar licenses or permissions in the form of LONOs that had been granted to CN Sugar Limited and Shakti Sugar Limited.

CN Sugar Limited and Shakti Sugar Limited were also ordered to immediately halt all their sugar and jaggery mills until they have been duly licensed by an authorized body.

The court has also issued a mandamus order directing the Ministry of Trade to immediately constitute the USB in terms of Section 4 of the Sugar Act within three months from the date of the ruling. 

The Inspector General of Police was also ordered to immediately remove all of CN Sugar Limited’s and Shakti Sugar Limited’s sugar and jaggery mills and related enterprises from the prohibited zones in terms of Section 19 of the Sugar Act within 14 days from the date of the ruling.

The court’s ruling has significant implications for the sugar industry in Uganda.

The nullification of the licenses issued to CN Sugar Limited and Shakti Sugar Limited means that the two companies will have to cease their operations immediately.

The court has also ordered the Ministry of Trade to constitute the USB within three months, which will provide a regulatory framework for the sugar industry.

Tags: Bugiri SugarCN Sugar FactoryKinyara SugarMinister for TradeShakti Sugar LtdUSMA
ShareTweetPin
Previous Post

New Safety Rules Seek To End Fire Tragedies on Buvuma Islands

Next Post

NUP Lined-UP Candidate Against Mpuuga in Masaka on Run Over Corruption

Related Posts

Police headed by DPC Kamukama arresting CN Sugar workers
Business

CN Sugar Commissioning Pits Industrialisation Drive Against Uganda’s Sugar Licensing Rules

August 23, 2026
Coca-Cola Unveils Premier League Campaign With Shs1m Monthly Rewards For Ugandan Fans
Business

Coca-Cola Unveils Premier League Campaign With Shs1m Monthly Rewards For Ugandan Fans

August 22, 2026
A section of a road in Njeru Municipality left severely damaged after a deep section of the road collapsed, disrupting access for residents.
Business

Njeru Residents Demand Probe Into Road Funds As Planned Works Stall

August 22, 2026
Uganda Airlines Ownership Debate: What The 0.01 Percent Figure Really Means
Business

Uganda Airlines Ownership Debate: What The 0.01 Percent Figure Really Means

August 20, 2026
(L-R) Stanbic Bank's Ali Lwanga Head Sales, Syliva Atuhairwe Head Distribution, Yvonne Namutosi Manager Digital and E-Commerce and Dogo Singh Manager Insurance.JPG
Business

Stanbic Expands Access to Unsecured Loans with Revamped ‘Oli in Charge’ Campaign

August 19, 2026
Katikolo Land Acquisition: Shs4.489 Billion Deal Leaves Compensation Gaps, Valuation Questions
Business

Katikolo Land Acquisition: Shs4.489 Billion Deal Leaves Compensation Gaps, Valuation Questions

August 14, 2026
Next Post
Alice Nanungi

NUP Lined-UP Candidate Against Mpuuga in Masaka on Run Over Corruption

RECOMMENDED NEWS

Diocese Signs UGX1.15 Billion Deal to Roof Long-Stalled Cathedral

Diocese Signs UGX1.15 Billion Deal to Roof Long-Stalled Cathedral

2 months ago
Kampala Standard Nursery and Primary School-Kyanja Among Top Performers in PLE Again 

Kampala Standard Nursery and Primary School-Kyanja Among Top Performers in PLE Again 

2 years ago
Micdad Mulirimira

Former Mukono Municipality Mayoral Candidate on Run for Assaulting Police Officers

4 years ago
Equity Group Managing Director, James Mwangi.  

African Banks Rank High in Strength as Equity Tops Continent

2 years ago

FOLLOW US

Insight Post Uganda

We bring you the most balanced news professionally investigated by our news team. The Insight Post is Uganda’s News company regulated by the Uganda Communications Commission.

Follow us on social media:

Recent News

  • CN Sugar Commissioning Pits Industrialisation Drive Against Uganda’s Sugar Licensing Rules
  • No Sleeping In The Fight Against Poverty, Babalanda Tells SDA Pastors
  • Coca-Cola Unveils Premier League Campaign With Shs1m Monthly Rewards For Ugandan Fans

Category

  • Agriculture
  • Business
  • Editorial
  • Education
  • Environment
  • Health
  • Lifestyle
  • Luganda
  • News
  • Opinion
  • Photos
  • Politics
  • Profiles
  • Religion
  • Runyankole
  • Security
  • Sports
  • Tourism
  • Uncategorized
  • World News

Recent News

Police headed by DPC Kamukama arresting CN Sugar workers

CN Sugar Commissioning Pits Industrialisation Drive Against Uganda’s Sugar Licensing Rules

August 23, 2026
No Sleeping In The Fight Against Poverty, Babalanda Tells SDA Pastors

No Sleeping In The Fight Against Poverty, Babalanda Tells SDA Pastors

August 22, 2026
  • About
  • Advertise
  • Careers
  • Contact

© 2024 The Insight post Uganda - The Insight post uganda. Site Powered by Bookablehood Ltd.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
error: Content is protected !!
en_USEnglish
en_USEnglish
No Result
View All Result
  • Home
  • Politics
  • Business
  • Sports
  • Lifestyle
  • Tourism
  • Opinion

© 2024 The Insight post Uganda - The Insight post uganda. Site Powered by Bookablehood Ltd.