By Our Reporter
The ongoing struggle by CN Sugar Limited to establish operations in Eastern Uganda has taken another dramatic turn, moving from high-profile political maneuvering to grassroots exposure of alleged misrepresentation. Official letters from Local Council I (LCI) chairpersons across Busia District have directly refuted CN Sugar’s claims of securing extensive sugarcane supply contracts and land leases with local farmers.
This revelation comes as CN Sugar attempts to navigate around a stringent High Court ruling that rendered its licensing illegal and declared its operations non-compliant with the Sugar Act.
Local Leaders Expose Phantom Contracts and Land Claims
Letters issued in October 2026 by local council leaders in Busia District cast serious doubt on CN Sugar’s claimed outgrower network:
- Busumba ‘B’ Village (Nangwe Parish, Dabani Sub-County): The LCI Chairperson clarified that claims regarding an individual, Mr. Nyongesa Joseph, owning 2,000 acres in the village are false, noting that “the village does not have those acres of land”. The chairperson categorically stated: “I don’t have any person who entered an agreement with CN Sugar Company in my village.”
- Busumba ‘A’ Village (Nangwe Parish, Dabani Sub-County): LCI Chairperson Wanyama Lucas Juma confirmed that while Mr. Nyongesa resides in Busumba ‘B’, he owns no land in Busumba ‘A’. He noted that “the lease he gave to CN Sugar Limited is not right and this has caused fear among my citizen people,” calling for intervention to ensure residents do not lose their land.
- Sikuda Village (Sikuda Parish, Sikuda Sub-County): LCI Chairperson Sibebe Rashida similarly refuted claims that Mr. Nyongesa holds a lease agreement for 1,300 acres in the area, writing that “he is not true and we don’t know him totally in the area” and requesting that authorities investigate to protect the community.
These revelations at the village level align with a broader pattern of compliance shortfalls that have characterized CN Sugar’s regulatory push.
In January 2025, Justice Dr. Douglas Singiza Karekona of the High Court delivered a landmark ruling in a suit brought by the Uganda Sugar Manufacturers Association (USMA). The court made clear legal findings:
Absence of Licensing Authority: Section 7(1)(j) of the Sugar Act vests the authority to license sugar mills exclusively in the Uganda Sugar Board. In the absence of a properly constituted Board, neither the Ministry of Trade, Industry and Cooperatives nor the Uganda Investment Authority had legal authority to issue licenses.
Violation of Zoning Rules: The factory was found to violate the 25-kilometer zoning radius intended to protect raw material supplies for existing millers and prevent destructive cane poaching.
Cancellation of Orders: The court cancelled CN Sugar’s Letters of No Objection (LONOs), halted milling construction, and ordered police enforcement to secure prohibited zones.
While CN Sugar subsequently obtained a stay of execution pending appeal, the stay merely suspends physical enforcement of specific orders; it does not vacate the court’s core legal finding that the company operated outside statutory requirements.
Political Pressure vs. Statutory Reality
Faced with legal hurdles, efforts surrounding CN Sugar have increasingly shifted toward political channels. Interventions involving high-level political figures including Prime Minister Robinah Nabbanja and local political maneuvers, such as statements by Namayingo District LCV Chairperson Ronald Sanya, have attempted to reframe the licensing impasse as a political or economic choice rather than a statutory prerequisite.
Lately, arguments have relied heavily on the economic plight of outgrowers to pressure regulators and bypass statutory guidelines. However, as the newly surfaced documents from Busia demonstrate, the claims regarding verified, large-scale farmer commitments and land availability collapse under scrutiny from local authorities.
The evidence from Busia’s village chairpersons underscores that political endorsements cannot replace verified contractual foundations or statutory compliance.
While market access for sugarcane farmers remains a genuine necessity across Eastern Uganda, regulatory frameworks established by Parliament exist to prevent speculative development, land disputes, and industrial instability. Rather than using political influence to bypass judicial decisions, long-term stability for Uganda’s sugar sector requires strict adherence to the Sugar Act and verifiable, lawful operations on the ground.
Below are LC Chairpersons’ Letters!
