Buyanja, Rukungiri – 28th October 2026 – Hope for value addition among dairy farmers in Buyanja Town Council, Rukungiri District hangs in balance after a multi-million milk processing machine remains idle over an unpaid debt.
The Rukungiri Dairy Cooperative farmers acquired a milk processing plant worth Sh1 billion from a Chinese supplier but have been unable to use it after failing to clear a Sh300 million balance.
According to the Board Chairperson, Canon Charles Karikatyo, the cooperative managed to mobilize over Sh500 million towards the procurement of the machinery, but the supplier has withheld the operational codes and full handover until the outstanding Sh300m is settled.
“We have the machine on site but we cannot process. The supplier says we must complete payment before they commission it,” Canon Karikatyo told officials during an inspection.
The matter came to light on Tuesday when the Minister for Local Government, Hon. Balaam Barugahara Ateenyi, visited the plant as part of his ongoing “Expose the Corrupt” nationwide working tour in Kigezi Sub-region.
Hon. Balaam, who was assessing government-supported enterprises and service delivery in Rukungiri, commended Gen. Salim Saleh for supporting the cooperative to acquire land for the factory back in 2015, a move that gave the farmers a permanent base for their operations.
The Minister said the predicament of the Rukungiri dairy farmers goes against President Yoweri Museveni’s call for value addition, which is meant to boost household incomes and strengthen local enterprises.
“The President has been very clear – we must add value to our milk instead of selling it raw. It is painful to see a Sh1 billion machine that can transform this entire district lying idle because of Sh300 million,” Hon. Balaam said.
He pledged to engage Operation Wealth Creation and the Ministry of Agriculture to see how the cooperative can be supported to clear the balance and operationalize the plant, noting that the factory has the potential to create jobs, stabilize milk prices and increase earnings for farmers in Rukungiri and neighboring districts.
