The UPDF has shot and killed Brig. Binani, a member of the Lord's Resistance Army (LRA) rebel high command and chief bodyguard of leader Joseph Kony.
Army spokesperson Col. Felix Kulayigye told journalists on Sunday that Binani was also in charge of logistics, movement of food and abductions for the LRA.
Binani was shot and killed on Friday following a clash with a UPDF squad 280km north of Djema in the Central African Republic.
"For the chief escort to die in combat means you are close to the bone marrow. It is an encouragement; we are decimating the command structure of the LRA. We are making arrangements to bring his body to Gulu," Kulayigye said.
He added that the army has rescued over 200 children and women from the LRA over the last six months.
Describing the circumstances that led to the killing, Kulayigye said the UPDF deployed following intelligence about a group of LRA in the area.
"We had not known he (Binani) was there, but we knew that it was Kony's group," he added.
The killing of Binani comes days after US President Barack Obama assented to an amended law, which offer a cash reward for whoever arrests Kony and his top commanders.
The amendment updates the Rewards Programme to target those indicted by international, hybrid or mixed tribunals for genocide, war crimes or crimes against humanity.
Kony and his commanders are wanted by International Criminal Court to answer charges of war crimes and crimes against humanity.