Instead, those displaced by such projects will be offered alternative housing.
The Uganda National Roads Authority (UNRA) has announced that the government will cease providing monetary compensation to individuals affected by road projects.
Instead, those displaced by such projects will be offered alternative housing.
UNRA Executive Director Allen Kagina said the decision aims to address the vulnerability of individuals who receive cash compensation but often end up in poverty due to poor financial decisions.
"In the work we do at UNRA, we displace many people, and most are compensated with cash to relocate elsewhere," Ms Kagina said.
"However, some of these are vulnerable people. Once they receive money, they might use it to pay off loans or, in some cases, make poor decisions like buying a second wife."
Kagina said the new policy is designed to provide a more sustainable solution for those affected by road development projects.
Cabinet has already approved the proposal, clearing the way for its implementation, she said.
This move will impact various road projects across the country and is expected to prioritize the long-term well-being and security of affected communities.
Under the new policy, all infrastructure development partners will be required to ensure that those affected by development projects receive tangible, long-term benefits.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"When people are desperate, they tend to use the money recklessly and carelessly," Kagina said. "But now, they must think beyond tomorrow."
She revealed that the focus will initially shift to constructing households for those displaced by projects, starting with the area around Kasokoso, where the construction of the Jinja Express Highway is set to begin.
However, Kagina noted that individuals who qualify for monetary compensation will need to undergo thorough financial literacy training to ensure they can manage their funds sustainably.
"A poor person who receives over Shs500 million must be trained on how to invest, spend, and save the money wisely," she stated.
The government's decision marks a departure from traditional compensation methods, aiming to prevent displacement from leading to further financial instability and to promote sustainable development for affected communities.
