Investors in Njeru Municipality, Buikwe District, have raised concerns over alleged land grabbing, warning that prolonged land disputes are affecting business expansion and could undermine the area's attractiveness to potential investors.
The concerns were raised during a tour of investment facilities in Njeru led by the Minister of State for Finance, Planning and Economic Development in charge of Privatisation and Investment, Hajjat Amina Mukalazi, together with officials from the ministry and the Uganda Investment Authority (UIA).
Nytil raises land dispute
Mitul Joban Putura, Vice Chairman of Nyanza Textile Industries Limited (Nytil), told the minister that the company was facing a land dispute that had affected its plans to expand operations.
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Putura described the dispute as a major setback to the company's investment plans and called for government intervention to help resolve the matter.
The issue was also raised by Diana Mutasingwa, Minister of State in the Office of the Vice President, who told Mukalazi that Nytil had previously been invited to a meeting convened by the then Minister for Lands, Dr Sam Mayanja.
Mutasingwa advised the Minister for Investment to engage Mayanja and other relevant authorities before taking further action on the dispute.
The Nytil land dispute has previously involved a community access road in Naminya South, Njeru Municipality.
In December 2024, then Lands Minister Sam Mayanja directed Nytil management to reopen a road that had been blocked, following complaints from residents.
Mayanja issued the directive during a locus meeting held at the contested site in Buikwe District on December 19, 2024.
Residents had complained that the closure of the road had disrupted movement and restricted access to homes and property.
The subsequent demolition of part of Nytil's perimeter wall, however, was viewed by some stakeholders as creating an opportunity for individuals to encroach on land claimed by the company.
Law to determine ownership
Moses Lukanga, Member of Parliament for Njeru Municipality, said the ownership dispute should ultimately be determined through the legal process.
He said allowing the relevant legal and land authorities to establish ownership would help resolve the dispute and provide clarity to all parties involved.
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The MP's position comes amid wider concerns over land disputes in areas experiencing rapid industrialisation and investment.
Minister warns against investor uncertainty
Mukalazi urged Buikwe District authorities to work with investors and relevant government agencies to address land disputes and other challenges affecting businesses.
She warned that failure to protect investments and provide certainty over land ownership could damage the district's reputation as an investment destination.
"If such things continue to happen, they scare away investors," Mukalazi said.
She also called on the Uganda Investment Authority to support efforts to resolve the Nytil dispute, pointing to the authority's previous intervention in Namanve as an example of how investment-related challenges can be addressed through government coordination.
The minister's intervention comes as the government seeks to attract and retain investment by improving the business environment and addressing challenges faced by existing investors.
For Njeru, which has attracted manufacturing and other industrial investments because of its location along the Kampala-Jinja corridor, investors say resolving land-related disputes will be important for maintaining confidence and supporting future expansion.
