Mufumba, Butare-Katojo Town Council, Rubanda District — Hon. Balaam has met residents of Mufumba Village over the long-standing iron ore compensation dispute that has left families facing eviction without adequate pay.
The meeting was part of his ongoing Kigezi Sub-region anti-corruption baraza that is inspecting markets, roads, hospitals and land compensation projects in Kabale and Rubanda.
THE MUFUMBA IRON ORE PROJECT
- Location: Mufumba Village, Butare-Katojo Town Council, Rubanda District. The area was formerly part of greater Kabale District.
- Investor: Devki Steel Mills (U) Ltd, owned by Dr. Narendra Raval, which plans to mine and process iron ore on 60 acres of land.
- Project Value: Part of Government’s strategy to add value to Uganda’s minerals before export, under President Yoweri Museveni’s directive.
On 8th October 2026, Prime Minister Rt. Hon. Robinah Nabbanja officially handed over the 60-acre land certificate to Devki Steel Mills. However, she was forced to intervene after residents protested the compensation process.
Residents who met Hon. Balaam said they were severely under-compensated and intimidated by Government valuers.
“The money given is not enough to buy alternative land for farming and settlement. We are being chased from our ancestral land with nothing,” one resident told the Minister.
Other serious complaints raised include:
- Under-valuation: A house plus its entire land was valued at only Shs 50 million. The owner described it as “daytime robbery” as the amount cannot buy similar land anywhere in Rubanda.
- Intimidation: Valuers allegedly told residents that if they don’t take the little money offered, they will be removed either way.
- Incomplete Payment: By the time of the Prime Minister’s visit, only 99 out of 161 affected people had been paid. The rest are still waiting, yet the investor has already been given the land certificate.
The complaints were raised by Mufumba LC1 Chairman Paulo Tibenderana and Rubanda District LCV Chairman Stephen Kasyaba, who told the Minister that although people welcome the investor, the compensation is unfair.
